Business incorporation solution in Quebec

Incorporating your business in Quebec gives your company the status of a "legal person", separate from its owners, with its own legal and tax responsibilities. This protects your personal assets in the event of a lawsuit or claim against the business, thus limiting your liability.

Incorporation also increases your company's credibility with investors and business partners, making it easier to access funding. Tax advantages are also a significant benefit, allowing you to optimize your tax position and maximize long-term profits. You can also optimize your compensation between salary and dividends to maximize the tax benefits of your incorporation.

Depending on whether you choose provincial or federal incorporation, each option offers specific benefits tailored to your needs and business strategy. To ensure that incorporation is right for your business, our team can provide you with a Quebec incorporation consultation.

Choosing the right legal structure is critical to determining the governance, liability, and tax aspects of your business. There are several legal structures, including

• Sole Proprietorship: Easy to set up and managed by one person. The owner is personally liable and there is no separation between personal and business assets.
• General Partnership: involves several people sharing profits and losses, with personal liability for the debts of the business.
• Corporation: offers limited liability, with shareholders responsible only to the extent of their investment.
• Limited Partnership: combines general partners responsible for management and limited partners whose liability is limited to their financial contributions.
• Cooperative: Allows for collective management in which members are owners and decision-makers.
• Non-profit organizations (NPOs) and registered charities: benefit from tax advantages because they are established for non-profit or charitable purposes.

There are various costs associated with incorporating a business, including government fees and professional fees. Government fees vary by province or territory and include fees for filing incorporation documents with the corporate registrar. In Quebec, for example, the fees for incorporating a corporation are set out in the Business Corporations Act and may vary depending on the authorized share capital.

Professional fees are associated with the assistance provided by our team of tax accountants and lawyers. These fees vary depending on the level of service required, the complexity of the corporate structure and the province in which you operate. When you request a quote, we will provide you with a service proposal that includes all costs to ensure a reliable service at the best market price.

The time required to incorporate a business can vary depending on a number of factors. Depending on the province or territory, the timeframe may vary.

In Quebec, online incorporation through the Quebec Enterprise Registrar (REQ) may expedite the process, while in other provinces it may take longer. The complexity of the desired business structure may also affect the timelines. A business with special requirements or complex structures may take longer to incorporate due to additional formalities.

In some cases, specific government approvals or authorizations may be required, which may extend the incorporation timelines. In addition, certain processing methods may expedite the process, which may also affect the timeframe. For example, government agencies offer expedited processing options for an additional fee.

When a company is incorporated, it acquires important tax responsibilities to ensure compliance and proper functioning. These responsibilities include income reporting, which involves reporting all income earned by the company to the tax authorities. Incorporated companies must also pay corporate income tax, which is calculated on the net profits earned during the tax year. They are required to collect and remit GST/QST, a tax levied on goods and services sold, to the tax authorities. Payroll taxes, including income tax and employment insurance contributions, must also be declared and remitted to the relevant authorities.

Finally, a registered business must maintain accurate and up-to-date accounting records, such as financial statements, transaction records and bank statements. These tax responsibilities are essential to ensure financial transparency, legal compliance, and the proper functioning of the business. If you would like to learn more about these basics, we offer an Accounting 101 consultation to help you understand these concepts.