How to Incorporate
Corporation is a type of a business structure in Canada. By incorporating your business you are creating a legal entity separate from the owners and shareholders. As a shareholder of a corporation, you will not be personally liable for obligations and debts of the corporation. (liability with respect to the Canada Revenue Agency, I.E. corporate tax, payroll deductions, GST/HST payments, etc., is not limited)
You can incorporate federally or provincially. A corporation can be registered in the province where your head office is located. If you do plan to do business in one or more province matters may be simplified if you register a Federal incorporation.
A Federal corporation can do business under the same name in all provinces and territories. Subsequent provincial registrations are often necessary to access government and banking services in the provinces where you will be operating.
Advantages:
- Limited liability
- Ownership is transferable
- Continuous existence
- Separate legal entity
- Easier to raise capital
- Possible tax advantage as taxes may be lower for an incorporated business