Should you incorporate?
Incorporating creates a separate legal entity for your business. For many owners it makes sense once profits are more than they need to live on, because income kept in the corporation is taxed at the small business rate. It also limits personal liability for most business debts. It is not right for everyone, though: there are extra filings and costs every year, and tax rules such as the tax on split income (TOSI) limit income splitting with family members. We go through your numbers with you before you decide.
Ontario or federal incorporation?
| Ontario corporation | Federal corporation | |
|---|---|---|
| Filed with | Ontario Business Registry | Corporations Canada |
| Name protection | Ontario | Across Canada |
| Doing business elsewhere | Extra-provincial registration in other provinces | Registration in each province where you do business, including Ontario |
| Usually best for | Businesses operating mainly in Ontario | Businesses planning to expand across Canada |
What our incorporation service includes
- Name search (NUANS report) for a named company, or a numbered company
- Articles of incorporation filed with the Ontario Business Registry or Corporations Canada
- Business Number and CRA accounts for corporate income tax, HST and payroll as needed
- Minute book with by-laws, director and shareholder resolutions and share registers
- Share structure discussion for owners and family members
- Bookkeeping set up in QuickBooks Online or Xero from day one
After you incorporate
A corporation has its own filing obligations. Each year you will need a T2 corporate tax return and an Ontario annual return, plus payroll filings if you pay salary and T5 slips if you pay dividends. If your sales pass $30,000, you will also need to register for HST. Quartax can look after all of it, so your corporation stays in good standing.
How long does it take?
Once we have your details, online incorporation is usually fast. A numbered company can often be set up within days, and a named company once the name search is complete. We give you a clear timeline when we start.