Register And Incorporate Your Business in Ontario

If you are planning to start a business and incorporate it in Ontario, then you are on the right track. Limited liability and great tax advantages are just a few reasons why a lot of people incorporate a business.

Advantages:

1. Limited personal risk. The greatest advantage of incorporation is the limited liability that it confers on shareholders with respect to debts, obligations, and liabilities of the corporation.

2. Number of Owners. Incorporated companies can potentially have an unlimited number of different owners. If the business has or is planning on having a number of owners, incorporation is preferable. First, it is easier to transfer ownership in the business, as all the owners have to do is acquire or sell their shares in the company. In addition, owners/shareholders are only liable to the extent of their shareholdings. They are not liable for any other owner’s personal debt or to their creditors as may be the case in a partnership.

3. Government Grants. Some government grants and programs are only offered to incorporated businesses.

4. Ability to raise capital. The ability to issue various classes of shares with preferences as to dividends, redemption or convertibility and to utilize bonds or debentures greatly enhances a corporations ability to obtain funds for expansion or development.

5. Employees. Corporations can offer shares to their employees as a form of profit sharing incentive thereby sharing in the profits and performance of that corporation without affecting control. The performance of the company, therefore, affects all and is an incentive for employees to improve performance and thus improve the value of their shares and the profits the company produces.

6 . Possible tax advantages. Small Canadian controlled private corporations are taxed at approximately half the regular rate on the first $500.000 of active business income in each year. A corporation also has additional tax planning and income splitting arrangements available.

7 . Continuous existence & ownership is transferable. The death or withdrawal of a shareholder does not affect the existence of the corporation, which enjoys perpetual succession.

8. Ability to hold title to real estate and enter into contracts. A corporation can own real estate and sign contracts under the corporate name.

Ready to incorporate your business? Incorporate today at Company Formations Canada. Fast, Easy, Online Ontario Incorporation Service.

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