Incorporation Overview

What is a Corporation?

A busines legal structure that is a sparate entitty from its owners/directors, recognized in Canada as one of the following designations:

1. Limited (LTD. or Ltee.)

2. Incorporation (Inc.)

3. Corporation (Corp.)

4. Societe (S.A.R.F.)

A business bank account is required. Records must be kept separate from personal accounts and assets.

Advantages

Limited liability
No personal liability for the shareholders.
The shareholder’s loss is limited to their investment in the corporation.
Easier to transfer ownership
Possible tax advantages
Potential financing options by selling shares of the company to generate capital.

Disadvantages

Higher cost to establish and additional costs for maintaining corporate records.
Closely regulated by government Extensive record keeping and more complex taxation and tax filing processes.
Increased formalities as to how documentation must be filed and maintained.

Provincial or Federal Incorporation?

The choice to apply for a Federal or Provincial Corporation is a choice made on the relative advantage and disadvantage between the “Canada Business Corporations Act” (Federal) and the “Business Corporations Act” (Ontario).

Federal Incorporation

Better name protection
Head office can be changed to another province
Less costs to establish a Federal corporation
Federal Corporations are automatically given a CRA Business number.

Choose either a Corporate name or a numbered company

Corporate Name:

ex. Enterprise Temiskaming.

By incorporating a business name, you legally own the name.
Appropriate for operating a corporation under only one name.

Numbered Company:

ex. 123456789 Ontario Ltd.

A corporation can have multiple operating names as long as the names are registered.
*for $60 through Ontario Business Registry
Each registered operating name will require renewal every 5 years.*
*for $60 through Ontario Business Registry

Options for Incorporating Online

Ontario Business Registry
OWNR third party platform

Tip: OWNR is simple to navigate, has an option to handle your corporate records and is cheaper using our direct link.

Ask about a consultation: info@enterprisetemiskaming.ca