Have you got a small to medium business that you want to incorporate – everything you will need to know?
In Canada, a small business could be incorporated in each of the Canadian authorities. However, when registering for the business, the suitable company Registry has to be consulted, determined by the province where the business will be operational.
As soon as you have picked a name for your business a Nuans Name Search Report has to be obtained to be able to check your proposed company name from a database of existing corporate bodies and trademarks. Such a report will offer a listing of names closely resembling your own and will help to make certain that your chosen title will be accepted before you continue with the process of incorporation. As soon as you’ve determined your chosen name isn’t being used by another corporate body or trademark, you can proceed to having your name incorporated.
Many people when incorporating a small business will enroll a numbered company and register a business name against the business, i.e. 2154789 Ontario Inc. c/o as Sunshine Bakery.
You can then complete a form of Articles of Incorporation or memorandum of association, a form of Notice of Directors and/or Notice of Registered Office.
An essential step that ought to be taken is to prepare the business’s Minute Book. It includes important information which will be required if the business is sold. Officers will need to be appointed; the kind of share certificate approved; the shareholder must pay for his or her shares; and permanent directors will need to be elected. Any records of these ought to be held inside the Minute Book.
Along with this, if you have chosen to incorporate a national business, you’ll have to submit a form registering the business with the state where it is situated.
The principal benefit of incorporating is the limited liability that an incorporated company enjoys. The business owner of a single propriety presumes all of the liability of the company; but a customer’s liability in an incorporated business is only limited to the amount of his investment. A sole proprietor’s personal assets could be seized in order to repay any debts; but a shareholder of an incorporated company isn’t held accountable for the debts incurred, unless he/she has issued a personal guarantee. Besides this is the benefit of having the ability to raise equity capital. Even though the proportion of ownership is reduced by issuing stocks, it’s a powerful means of increasing that much needed capital.