HOW WE CAN HELP
Starting a business can be one of the most impactful decisions a person can make in their life. At Jahanshahi Law Firm, we have the business law knowledge and experience to help you navigate the federal and provincial laws governing corporations and to guide you through the incorporation process. Our firm can conduct the necessary NUANS search for the chosen name, draft articles of incorporation, compile and prepare the minute book and file the initial return for a newly incorporated business. We can also recommend experienced accountants who can assist you with the tax implications and filings for your newly incorporated business. Our firm will advise you of various other preliminary matters which must be addressed before you can start conducting business under your new corporation. Once the corporation has been incorporated to your satisfaction, we will send you annual reminders of when to file your annual return and conduct the corporation’s annual resolutions, as necessary.
WHY YOU SHOULD USE A BUSINESS LAWYER TO INCORPORATE
There is value in having a business lawyer incorporate your company. When you incorporate your company through our business law firm, you do not just get a set of filed articles of incorporation that set out basic information about the corporation. In incorporating a business, we provide the following services:
STEP 1 – Initial consultation during which we will answer any questions you may have and help you decide on various options available to you regarding the incorporation of your business.
STEP 2 – We will help you choose a name for your corporation, and we will conduct the necessary searches to ensure the name chosen is not similar to the name of another company.
STEP 3 – Preparation of the articles of incorporation in accordance with your instructions and filing of the articles of incorporation with the Ministry of Public and Business Service Delivery or Innovation, Science and Economic Development Canada, as applicable.
STEP 4 – Preparation of a complete minute book which will include a corporate summary, bylaws, initial director and shareholder resolutions, directors’ register, shareholders’ register, officer’s register, transfer register, and share certificates duly executed and issued to shareholders.
STEP 5 – Once the incorporation is complete, we will provide you with all documentation and file the initial return on the corporation’s behalf as necessary.
STEP 6 – Our law firm will maintain a virtual copy of your minute book and provide you with annual reminders regarding the need to prepare annual resolutions and file the annual return as necessary.
In addition to receiving the services above, when you hire our business law firm to incorporate your business, you can have peace of mind knowing that the relevant federal or provincial statute has been complied with. We have the necessary business law knowledge and skills to handle complex share structures, and we can help draft a shareholder agreement setting out the relationship between shareholders as necessary.
For more information about corporations and other business entities, we recommend that you visit the [Business Law Insights] section of our website. If you are thinking about incorporating your business, please contact us, and we can arrange for a consultation to discuss your business needs.
Do I Need a Lawyer to Incorporate a Corporation in Ontario?
The short answer is no. You can incorporate a federal or Ontario corporation without hiring a lawyer. However, we strongly recommend that you consider hiring an experienced business law firm to incorporate your corporation.
What are the Benefits of Incorporating?
Liability – A corporation is a distinct legal entity separate from its shareholders, directors, and officers. This means that in the event the corporation incurs a liability, the shareholders, officers, and directors of the corporation are not responsible for such liability. You may consider incorporating your business to prevent your personal assets from being exposed to liability for the business of the corporation.
Perpetual Existence – As a corporation is a separate and distinct entity from its shareholders, the corporation does not “die” upon the death of its shareholders. This means that a corporation has the capacity to conduct business long after its original shareholders have died. A corporation’s perpetual existence makes it an attractive business vehicle for estate planning.
Tax Advantages – There may be tax advantages to incorporating your business. For example, corporations may benefit from lower tax rates, lifetime capital gains exemptions, and income splitting. We recommend that you consult with an experienced accountant prior to incorporating to determine whether incorporating is the right move for you from a tax and accounting perspective.
Reputational Benefits – It is possible that incorporating your business will have a positive impact on the image that your corporation holds with your customers. Some customers may find corporations more credible compared to other business vehicles such as sole proprietorships.