INCORPORATING A BUSINESS
If you are thinking of starting a new business, it may be a good idea to consider incorporating it. By incorporating your new business you allow yourself to be personally protected from any liabilities and legal action. Incorporating your business is the process of creating a separate legal entity- the company is treated under the law as if it is a separate person. The company also provides tax benefits and tax flexibility. If you are interested in taking advantage of the benefits that incorporating a business affords, a free consultation at Tailor Law will provide you with information about our approach according to your needs.
LAWYERS INCORPORATING SERVICE: CANADA & ONTARIO
Whether you are a business or non-profit company, it is important that you understand the reasons for wanting incorporating. A legal professional at Tailor Law will be able to provide you with advice on which business structure to choose and whether to incorporate in Canada or Ontario.
Before Incorporating My Business?
Prior to this process, there are a few preliminary steps you should take:
- Conduct a name search prior to choosing a company name. If the proposed name of your business is too similar to a current name of another corporation operating in Ontario, the Ministry of Government and Consumer Services may refuse to grant you the name.
- Consider the classes and shares that the corporation is authorized to issue
- Consider the number of directors that your company will have. Include the contact information of all directors
- Consider any restrictions on issue, transfer or ownership of shares (if there are any)
What do I need to incorporate a small business?
There are a few general steps you can take in order to get started, but there are also complex issues that must be carried out. You are required to file an Articles of Incorporation with the Ministry. Within 60 days you must file an Initial Return/Notice of Change with the Ministry. It is important that all filing are completed correctly. In order to avoid issues with your application, it is important to discuss your needs with a legal representative, as a legal representative will understand where and when to file certain documents.
The most common types of nonprofits in Canada are:
- General types of corporations which include professional associations and community organizations
- Social clubs and public houses
- Charities – charities also include religious organizations
- Sporting and athletic organizations
If you are thinking of incorporating a business in Ontario or Canada, it is a wise choice to consult with Tailor law to ensure the entity will support your needs into the future, minimize your costs and risks. If you are looking to become a nonprofit, keep in mind there are a number of prohibited actions that will delay or void your application.
INCORPORATING A NONPROFIT
During this process, consideration of your business goals is essential. For example, perhaps you would like to setup a process to eventually become a charitable organization. The process of incorporating for a private company has its own provisions and guidelines in comparison to nonprofits.
Steps in Incorporating your not-for-profit Corporation
- The first step is to determine if the objects of your non-profit will be those of a charity. Our lawyers will fully describe each step of the nonprofit incorporation such as the objects, the filing of the application, and the organization of the entity.
- The next step is to choose a distinctive name for your not-for-profit. Your corporation must not contain a name or names that are confusingly or deceptively similar to pre-existing names for any other corporation or company.
- The next step is to determine whether the corporation will seek financial assistance from the Government. If the corporation will seek financial assistance from the Government, they should consult with the Ministry prior to completing its application.