Every incorporated business must have a name that legally identifies it.
Published by Zoom Startups November 10th, 2021.
A corporation is a legally established business that can own assets and incur debt. In Canada, a corporation is created when one or more entrepreneur register a business with a provincial or federal government through articles of incorporation by documents that describe the type of business being created, its officers, directors and bylaws. This process can be complex and should be done with the advice of a professional.
In order to have your business registered as a corporation our qualified business expert can assist you with the following steps.
Ø Step 1: Naming your corporation which can be made up with numbers or words.
Ø Step 2: Creating your articles of incorporation which establishes the structure of your corporation.
Ø Step 3: Establishing the initial registered office address and first board of directors. Every incorporated business must have a registered office address and a board of directors. The registered office is where your corporate records must be kept. This is also the address official documents will be served on the corporation. This includes any postal mail, parcels and legal documents.
Your corporation must be have a board of directors. These directors must meet the eligibility criteria. When you incorporate your business each director's first name, last name, address, whether or not they are a resident Canadian must be disclosed.
Corporations are considered legally separate from their owners. Because it is defined by law, a corporation is an impersonal entity. If the owner dies, the company can continue without issue—unlike in partnerships or sole proprietorships where company assets can be tied up because of estate or taxation issues.
Operations of corporations are usually by multiple owners whose ownership percentage is determined by how many shares they hold. There is usually structure and formality in a publicly traded corporation, along with high administration costs. They share decision-making under the guidance of a board which sometimes can hamper flexibility but it encourages accountability. At Zoom Startups our qualified professional can offer advice on constructing articles of incorporation and bylaws for your business.
In most corporations revenues, expenses and cash flow management are all traced internally by professionals, with additional professional support like auditors from outside if necessary. With regard to publicly traded corporations, they must report their results publicly through audited financial statements and detailed disclosures.
One advantage of corporations is that they have few limits on the expenses they can deduct for taxation purposes. They pay tax on earnings before tax at established rates. Net income that is distributed to owners is then taxed again at their personal rates. They are subject to progressive tax rates established by federal, provincial and municipal authorities.
Let our certified experts do all the paper work regarding your tax breaks, benefits and liabilities. Limited liability is an advantage. If the company is sued, the owners’ personal assets cannot be seized to settle the claims. Owners’ liability is limited to their investment. Capital can be raised without exposing owners to unlimited liability.