The Five W's of Incorporation

WHO should incorporate?

  • Any business whose annual net income is greater that $20,000.00
  • Any business which has a risk of being sued.

WHY should a business incorporate?

  • To reduce its income taxes and that of its owner.
  • To protect the personal assets of its owner.
  • To give the business greater credibility.
  • To protect the business name from being assumed by others.

WHEN should a business incorporate?

  • As soon as it is obvious that the business is generating or will generate net income in excess of $20,000 per year, and will do so for the foreseeable future.
  • Before the company engages in any activity which results in the business being sued. Once an event has occurred that results in a lawsuit being filed against an unincorporated company, both the business assets and the owner's personal assets may be attached for damages. NOTE: The personal assets of a director may still be attached when a corporation is sued if negligence can be proven on the part of that director.

WHAT is involved in incorporating a business?

  • You will need to decide on a name for your corporation, that is not in use by another business. (A 'numbered' company can also be used.)
  • A NUANS report will need to be obtained to verify that the desired name is available for incorporation.
  • A professional should be engaged who specialize in incorporating businesses. They should not only be familiar with the legal requirements of preparing Articles Of Incorporation but should also understand how to provide the maximum flexibility for both your corporate and personal income tax planning.
  • The 'Initial Return' will need to be filed within 30 days of the creation of corporation, to declare the directors and officers of the company. If this form is not filed, the corporation may be disolved at the discretion of the Companies Branch.

WHERE should I go to incorporate my business?

  • To The Incorporators, of course!
    Others that should be able to provide you with information about incorporation include:
    • your local Chamber of Commerce,
    • a Business, Tax or Legal Advisor,
    • an Accountant, or
    • a Financial Planner

Recipient Of
The Oakville Beaver's
Readers' Selection
1st Place Diamond Award
in the category of
Incorporation Services
for ELEVEN YEARS in a row