Well it may not be as straightforward as you think. We are not saying that you cannot incorporate your own company, but there are a few things to consider. First and foremost, what do you actually know about incorporating a company? Are you sure it’s the right time to incorporate? Sure, Google will help answer some questions, but do you know everything involved in the process? This is your chance to be your own boss, make your dream a reality, build a new future, to do all of this you need to start with a strong foundation.
There are a number of factors to be considered when laying the foundation for your new business. Here is an overview of where to start.
The 3 most common structures – Sole Proprietorships, Partnerships and Corporations. It is important to know the differences between each structure and then choose the one that best fits the needs and goals of your business. This is an important decision to make and choosing incorrectly could expose you to liabilities you did not anticipate or increased costs to correct later. For this series we will focus on what we deal with most: Corporations.
Provincial & Federal Incorporation
In Canada a business can be incorporated Provincially or Federally and Extra-Provincially – but that’s for another time. There are differences between the levels and of course each comes with its advantages and disadvantages. Making this decision will affect the next steps that you take.
Will you actually name your business, or do you prefer a numbered company? Will your company go by a business name that is different from your company’s? In order to secure your name, there are searches that will need to be conducted. Depending on whether you have chosen Provincial or Federal incorporation will determine where and how these searches are conducted.
Directors, Officers and Shareholders what do these all mean? Is it relevant to you and your company? Each business is unique, and the key players differ, so it is important to know how people all fit together, how the decisions are made and how your business will be protected.
We get that this may be a little overwhelming, but over the coming weeks we will be helping to outline these considerations, so you know where to start. At every stage of this process the Entrust Team is here to help guide and assist so you can focus on running your business.
Thank you for reading. For general inquiries please “Connect”
The information provided in this blog is meant to be just that, information. This is information is not intended to replace the advice of a lawyer or to address the law as it pertains to your situation specifically. Be sure to contact a legal professional should you have any questions or concerns.
Photo Credit: Brad Neathery