A registered or individual business is a company of which you are the sole owner. There is no legal separation between the company and yourself. Which means that all profits or losses are your responsibility. This is the simplest and cheapest way to open a business.
An incorporation is a more complex legal form than the sole proprietorship. It is a legal entity separate from its shareholders. Thus the financial risks of the company will not directly impact the personal property of the founders.
It depends on the purpose of each entrepreneur considering incorporation. The most common reasons we find are:
Although you can incorporate yourself, it is strongly recommended that you go through a lawyer to set up a corporation to:
One of the first questions you need to answer before you incorporate is if you plan to do it provincially or federally. Of course the answer will depend on your vision for your business and your conversation with your lawyer.
Generally speaking, if your company will only operate in Ontario, it is better to choose to incorporate in the province. If you plan to have customers or subsidiaries across Canada and internationally, then incorporation should possibly be federal. Be aware that the laws and requirements that govern your business will depend on this choice. For example, federal incorporation requires that 25% of the administrators of the company be Canadian.
A lawyer will be able to avoid all these mistakes and advise you on best practices specific to your industry.
A corporate book, or more often called book of minutes, is like the constitution a business. It includes, among other things: the issue of shares, the appointment of the directors and officers of the company, the charter, bylaws, securities, etc. In short, it is the heart of the business. The provincial and federal corporate law requires each corporation to have and update each year a book of minutes.
Unless you ask for a change of lawyer, Neolegal provides an account executive lawyer for its business clients. That is, you will have a dedicated lawyer who will take care of all the consultations and requests of your company.
Neolegal's lawyers are all members in good standing of the Ontario Bar. They are chosen on their ability to provide the best advice quickly and easily.
We are available from Monday to Friday, from 9:00 am to 5:00 pm. The entire Neolegal team is located in Canada.
Not sure what steps you need to take, or need immediate assistance?