Incorporate a New Business

Description

 Incorporating in Ontario

Why Incorporate?
Incorporating your business in Ontario is an important step in establishing it as a separate legal entity. Some key benefits include:

•  Limited liability: Protects shareholders from personal liability for the corporation’s debts.
• Tax benefits: Potential for lower tax rates and better financing options.
• Legal protection: The business is recognized as its own legal entity.

Steps to Incorporate in Ontario

TN Legal Services can simplify the incorporation process for you. Here are the five basic steps:

• 1. Name Your Company:
  Research and Plan: Before choosing a name, conduct market research, a SWOT analysis, and create a business plan.
  Choose a Name: Your company name should have:
  – A unique element that distinguishes it from others.
  – A descriptive element indicating the business type.
  – A legal ending like “Incorporated,” “Inc.,” “Limited,” or “Ltd.”
  Name Search: If you choose a unique name, a NUANS name search is required to ensure it’s not already in use. TN Legal Services can handle this for you. If the name is taken, you can choose a different name, go with a numbered corporation, or cancel the process.
  Numbered Corporations: These don’t require a name search. The Ontario government will assign a number as your company name, like “123456 Ontario Inc.”

2. Registered Office Address:
– Provide a physical address in Ontario for official documents. This cannot be a P.O. box or virtual office. The address will be public, so consider privacy if using a home address.

3. Appoint Directors and Contact Person:
– Designate at least one director responsible for the company’s operations.
– Provide contact details for the person the Ontario government can reach for further information.

4. Issue Shares and Create a Minute Book:
– Minute Book: This is a legal requirement that includes all important records like share certificates and corporate bylaws.
– Shares: Decide on share types, such as:
– Class A Voting Common: Allows shareholders to vote.
– Class B Non-Voting Common: Allows investment without voting rights.

TN Legal Services can help set this up and file your first annual return with the Ontario Corporate Registry.

5. Finalize Incorporation:
– After appointing directors, issuing shares, and setting up the office, you’re almost done.
– Consider any additional registrations, like GST/HST if your sales exceed $30,000, payroll accounts for employees, import/export licenses, or Workers’ Compensation.

By following these steps, your business can be up and running smoothly with legal recognition in Ontario.