Get your company set up quickly and easily
Are you looking to start a business but don't know where to begin? NBG Chartered Professional Accountant can help get your business off the ground. The incorporation process can be overwhelming and complex, but with our help, it doesn’t have to be. Our team at NBG will help make the process simple by guiding through all of the requirements for your business with our expertise.
Incorporation is the legal process used to form a new corporate entity, which separates the firm's assets and income from its owners and investors. The incorporation process is governed by either the federal or provincial laws under which the corporation was established. When incorporating a business in Canada, it is important to determine the jurisdiction in which your corporation will operate. You may choose to incorporate federally or in one of 13 provincial/territorial jurisdictions.
If you are thinking of incorporating your business, it is important to seek professional advice to ensure that incorporation is the best option for your business and that your business is incorporated in the best jurisdiction.
At NBG, we make this process simple for you by walking you through this and providing guidance on requirements that you must be aware of to move forward.
Incorporating your business has many benefits, including limited liability protection for the owners, easier access to capital, tax advantages, and increased credibility with customers.
Once a business is incorporated, it becomes a legal entity. This means that your corporation will have certain rights and obligations, including the ability to acquire assets, obtain a loan, enter into contracts, incur legal liability and carry on a business. Incorporation also gives the company limited liability protection, which means that the owners are not personally responsible for the business's debts. Hence incorporating can help protect your family’s personal assets from being exposed to such liabilities.
In addition to these advantages, incorporation can also help your business to attract investors and thus make it easier to access financing. Potential investors may be more likely to invest in a company that is incorporated, as they will have confidence in the company's legal status and protection from personal liability.
Once a company is incorporated, the business will have also certain tax advantages such as lower corporate tax rate, income splitting opportunities, tax deferral etc.
In some circumstances, certain professional organizations will allow their members to register their business as a corporation and form what's known as a "Professional Corporation." A professional corporation is a corporation that provides professional services and that is regulated by a governing professional body. Only members of certain professions such as physicians, lawyers, accountants and dentists can operate a professional corporation.
Essentially, its similar to a regular corporation except the services provided by a professional corporation are generally restricted to the practice of the profession.
The few key things that differentiate a professional corporation from a regular corporation are:
In many, but not all provinces and territories, only members of the same profession can be voting shareholders of a professional corporation;
The officer and directors of a professional corporation must be shareholders of the corporation as well;
The professional corporation is generally subject to the investigative and regulatory powers of the regulatory body governing the profession; and
A professional corporation will not protect a professional against personal liability for professional negligence.
Professional corporations can be a great way to protect yourself from personal liability and offer certain benefits, but it is important to make sure you are aware of all the requirements before making the decision to register as one.
If you are thinking about incorporating your business, or have any questions about the incorporation process, please contact NBG Chartered Accountant for a free consultation. Our team would be happy to help you navigate the incorporation process and ensure that your business is set up for success. We can help you choose the right corporate structure for your business, file all the necessary paperwork, and handle ongoing compliance. We'll take care of everything so you can focus on what's important - running your business.