Incorporation

Simplifying the Incorporation Process

At Taylor & Taylor Law Corporation, we simplify the incorporation process. Whether you’re starting fresh or restructuring, we’ll guide you through the steps, making it as smooth and straightforward as possible.

Langley Lawyers_Surrey Lawyers_Incorporating a Business

Understanding Corporations

A corporation is a separate legal entity distinct from its shareholders. It has all the rights, powers, and privileges of an individual, meaning it can own property, file taxes, sign contracts, and enter binding legal obligations.

Choosing the Right Business Structure

There are several business structures to choose from in addition to a corporation, such as sole proprietorship, partnership, limited partnership, limited liability partnership (LLP), and unlimited liability company. Depending on your financial, tax, personal, and legal circumstances, incorporation may or may not be the best choice for your business.

A lawyer can help you decide which structure best suits your needs.

Professional Corporations

A professional corporation is a private company governed by a self-regulating body in addition to provincial corporate laws. This governing body may have restrictions on the company’s name, activities, and who can own shares.

In British Columbia, only certain professionals are allowed to practice through a corporation. Each profession has its own rules and governing body. Some examples of professionals who can incorporate their practices include real estate agents, physicians, dentists, accountants, massage therapists, and more.

Post-Incorporation Requirements

Yes, there are extra steps to take care of after you incorporate. For instance, you’ll need to file both personal and corporate tax returns each year. Plus, maintaining your corporate records in line with your company’s articles and the applicable business corporations statute is crucial. This includes preparing the appropriate resolutions and paperwork, and filing the annual report annually.

Advantages of Incorporating

1. Unlimited Lifespan

Corporations can exist indefinitely as long as their shareholders want them to. This allows them to grow and prosper over a longer period than other business structures.

2. Limited Liability

Thanks to a corporation’s separate legal personality, shareholders enjoy limited liability regarding the corporation’s business activities. Generally, shareholders are only liable up to the amount they paid for their shares, with some exceptions.

3. Tax Benefits

In Canada, private corporations controlled by Canadian residents (known as Canadian Controlled Private Corporations, or CCPCs) receive preferential tax treatment. CCPCs are eligible for the small business deduction, which provides a reduced tax rate on qualifying active business income up to the federal business limit. Most provinces also offer a reduced corporate income tax rate for CCPCs that qualify for the federal deduction. Corporations also offer flexibility in deferring taxes and allowing the splitting of corporate income.

4. Capital Raising Opportunities

Corporations can raise money by issuing shares to investors in return for funds or loans. These transactions, known as private placements, are regulated by local securities regulators. Additionally, corporations can borrow money or grant security to creditors.

Simplifying the Incorporation Process

  • Tailored Incorporation Plans: No two businesses are alike. That’s why we offer customized incorporation plans tailored to your specific needs and goals. Whether you’re a startup or an established business, we’ll help you choose the right structure and set you up for success.
  • Efficient Incorporation Process: We know that efficiency is key. Our streamlined incorporation process ensures a smooth transition, minimizing disruptions to your business operations. Let us handle the paperwork so you can focus on what you do best.
  • Ongoing Compliance Support: Incorporation is just the beginning. We provide ongoing compliance assistance to keep your business on track. Our team handles annual filings, corporate record maintenance, and any necessary updates to your corporate structure, giving you peace of mind.

Have More Questions?

Still have questions? We’re here to help. Our incorporation lawyers are ready to guide you through the incorporation process. Contact us today to schedule a consultation and take the next step toward growing and protecting your business.

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