What to Do After Incorporating a Company: Considerations For a New Canadian Company
What to Do After Incorporating a Company in Canada
Incorporating a company in Canada is just the beginning of an exciting journey. After incorporation, there are a series of steps to consider to ensure your company runs smoothly. Understanding corporations and the process post incorporation is crucial for aspiring entrepreneurs and established businesses alike. This guide aims to shed light on the benefits of incorporating a business and some post incorporation considerations.
Why Incorporate?
Limited Liability Protection
A primary reason to incorporate a business is the limited liability protection a corporation can offer. Incorporating can separate personal and business assets and limit the liability of shareholders to their investment in the corporation.
Access to Capital
Incorporating a business opens up avenues for raising capital. With a corporate structure, you can issue shares to investors and raise funds through equity financing, allowing for potential expansion, investment in new projects, or acquisitions.
Credibility
Incorporating your business may add a level of credibility to your brand. It signals to clients, customers, and potential investors that your business is established, serious, and committed to long-term success.
Tax Advantages
There may be potential tax advantages available when incorporating. It is always a good idea to speak to a tax professional regarding potential benefits of one business vehicle over another.
Post Incorporation Considerations
The following are some considerations every new business owner should consider after receiving articles of incorporation. The following is not a complete list.
Record Book
After incorporating your company, it is important to ensure the corporation is properly organized, and all organizational material are maintained in the corporation's minute book. Organizational material includes the constating documents, appropriate resolutions, share issuance, and other necessary items required by law.
Bank Account
It is prudent for a corporation to develop a relationship with its preferred bank and to open any necessary bank accounts.
Tax Accounts
Depending on your business type, you may need to register for various tax accounts with the CRA like the Goods and Services Tax/Harmonized Sales Tax (GST/HST), etc. Understanding your corporation's tax obligations is essential.
Business Licences
Depending on your business activity and location, you might need specific licenses and permits.
Maintenance
Incorporating a company in Canada comes with ongoing legal, tax, and other compliance obligations, including annual filings. Regularly maintaining your corporation’s record book and speaking to your lawyer is key.
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Disclaimer: All materials contained on this website should not be construed or relied upon as legal advice. The content of the SLC Law website is provided to you for informational purposes only and should not be construed as legal or other advice on any subject matter. Contact a lawyer or other professional for advice regarding your particular circumstances.
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SLC Law
SLC Law is a business law, intellectual property law, and corporate law firm in Mississauga.