We are living in an entrepreneurial world. Starting a business has become easier with the addition of remote communication, making the need for a large office less important and thus requiring less capital to get started. Web businesses continue to grow in ridiculous leaps and bounds, making answering the call to be your own boss that much easier
Incorporation at the Federal Level
When starting a business, it is a good idea to look into the advantages of Incorporating in Canada. Incorporation at the federal level has many benefits. Any potential losses your business might incur are limited to the amount you have invested.
If you are looking towards the future and wish to pass the company on to your kids, your corporation will live on after you die, as incorporation means perpetual existence. Even if you decide not to incorporate right away, your accountant may advise it once you reach a certain revenue as there are many tax advantages once you incorporate. Incorporating also means you are able to raise capital more easily through the sale of shares.
The Benefits of Incorporation at the Federal Level
Going through the motions of researching potential names only to find the name is already taken can be exhausting. Corporations Canada is far more diligent in the protection of company names. They do a thorough search and once the name is approved it is protected across Canada. This is second only to Trademark laws and protection.
Federal incorporation allows you to operate anywhere in Canada, whereas provincial incorporation keeps your business interests within the province. This means your company can be recognized globally. You can then choose the location for your head office anywhere in Canada. There is no need to incorporate provincially once you incorporate federally. However, you do have to register your company in every province you wish to conduct business.
Convenient Online Registration : Incorporating In Canada
Once you decide to be your own boss, you will have much on your plate. Incorporating online is simple and convenient, allowing you to do it yourself and have it done quickly.
You can actually save money by filing online. Fees for registration by mail are $250, whereas filing online is only $200. You also will not be faced with any mailing charges for registered mail or courier services. Once you register online, you will receive immediate confirmation that your application has been received. Mailing your application can take much longer and you will not be certain your package has even been received. Articles are processed promptly through the Corporations Canada Online service allowing for
same-day or next-day service.
You can register online at https://www.ic.gc.ca/app/scr/cc/CorporationsCanada/hm.html?locale=en_CA.
Be Prepared and Know Your Stuff
You will want to consult the Guide to Federal Incorporation before taking the steps of incorporation.
You can use this link to read online or download files of the guide: http://www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/h_cs04839.html. Although you do not require a lawyer to incorporate, it might be advisable to consult with legal counsel prior to incorporating. They can advise you on more complicated issues, such as corporate structure.