The primary advantage of incorporating a new company in Canada is to limit your liability to the assets of the corporation only. Usually, shareholders are not liable for the debts or obligations of the corporation. So if your corporation defaults on a loan, unless you haven’t personally signed for it, your personal assets won’t be in jeopardy. This is not the case with a sole proprietorship or partnership. Corporations also offer many tax advantages that are not available to sole proprietors.
Some other advantages include:
- A corporation’s life is unlimited and is not dependent upon its members. If an owner dies or wishes to sell their interest, the corporation will continue to exist and do business.
- Retirement funds and qualified retirement plans may be set up more easily with a corporation.
- Ownership of a corporation is easily transferable.
- Capital can be raised more easily through the sale of shares.
- A corporation possesses centralized management.
Why Incorporate in Canada?
Incorporation Canada. Incorporating is the best way to establish your business and to protect your assets. Some of the benefits of incorporating are:
No personal liability for the obligations and debts of the business
Unincorporated business (sole proprietorship and partnerships) are liable for the full extent on his or her personal assets for the liabilities of the business. To reduce this risk, companies are incorporated to limit the liability of the owners and protect their personal assets.
Take advantage of tax savings
If your business is not incorporated, you pay personal income tax on your business annual net earnings. Depending on your level of earnings, you may be paying personal income tax rates as high as 47% on net earnings in excess of $ 100.000 in a year. After paying your taxes, the amount of cash left over for living expenses and savings is greatly reduced.
Income Splitting
With a company, you can effectively “Split” your income. An individual with no other resources of income will be able to receive approximately $ 24.000 of canadian dividends without being subject to tax. This is because of the dividend tax credit.
Expense Deductions
Operating your business through a company may allow you to increase expense allowances. i.e. Through corporation you can claim more liberal travel and entertainment expenses.
Some other benefits of incorporation are:
Ease of transferring ownership. Ownership (represented by shares of stock) can be readily transferred;
No shareholder, officer or director may be held liable for debts of the Corporation unless corporate law was breached;
Limited Liability – shareholders are not held accountable for corporation’s debt, obligations, or acts of the company over and above the amount paid or owed for the purchase of shares.
Unlimited life – the corporation does not cease to exist, unlike sole proprietorship or partnership, with the death of shareholders because it is a separate legal entity.
Access to capital- corporations can raise capital by issuing and selling new shares in the company or by issuing debt.
The corporate structure provides for a great deal of flexibility with respect to ax planning;
Tax advantages- lower tax rates
Our Canada Incorporation Package:
For what our prices includes, our prices can’t be matched.
Incorporation Canada. We incorporate your new business in Canada, Federally or Provincially, for only $99.99 + government fees. A lawyer usually charge you approximately $ 600.00 to $ 1.200 for the same package. We provide one of the most complete incorporation packages in Canada, and one of the lowest prices. Other incorporation services charge from $ 75 – $ 260 only to file your paperwork, and leave it up to you to figure out how to set up and organize your corporation, hold the organizational meetings and sign the appropriate documents and waivers.
We Offer only one full incorporation package for only $99.99 and this package includes:
Receipt and review of your incorporation information.
If you choose to incorporated a named company, we conduct a Provincial or NUANS prescreen search of your proposed corporate name and advice you if there are any difficulties with your name.
Preparation and filing of Certificate of Incorporation.
Preparation of Organizational Minutes – covering the election of directors and officers, issuing shares, the form of share certificates and fixing the number of directors.
Preparation of Corporate By-Laws which sets out the organization of the corporation, including the powers and election of directors and officers, filing vacancies, holding meetings of shareholders and directors, required notice periods, setting the fiscal year end and the execution of documents.
Preparation of the Register of directors, the Register of Shareholders, the Register of Officers and the Stock Transfer Register.
Issuance of share certificates per your instructions
Blank share certificates
Shareholder ledgers for each shareholder
Provincial-specific startup check list
Incorporate Today in Canada. Click Here to incorporate today. Fast, Easy, Affordable.
