INCORPORATE YOUR BUSINESS
IN ONTARIO 432
Lawyer is Hands On
Job Done Today
- Work with an Incorporation Lawyer from Start to Finish
- Legal Advice and Guidance throughout the Process
- All Required Filings and Corporate Organizational Documents
- Efficient Online Process and Quick Turnaround Times
- With Pricing Comparable to the “Do-it-Yourself” Online Services
Personal Service & Advice
All Inclusive Packages
Easy Process by Phone/Email
“We’ve helped many people incorporate in Ontario. If you have questions or need advice, feel free to call or email us. We offer a free 30 minute consultation.”
All Inclusive Packages
OUR PACKAGES INCLUDE
- Electronic Minute Book
- Articles & Certificate of Incorporation
- Corporate By-Laws
- Director & Shareholder Resolutions
- Share Subscription & Share Certificates
- Registers & Ledgers
- – Electronic Minute Book
- – Articles & Certificate of Incorporation
- – Corporate By-Laws
- – Director & Shareholder Resolutions
- – Share Subscription & Share Certificates
- – Registers & Ledgers
- – Government Filing Fee
- – 3rd Party Fees Disbursements
- – Corporate Name Searches (Pre-Nuans & Nuans)
- – Business Number/Tax Accounts from CRA
- – Form 1 or Form 2 Initial Returns
- – Legal Advice and Consultation
- Government Filing Fee
- 3rd Party Fees Disbursements
- Corporate Name Searches (Pre-Nuans & Nuans)
- Business Number/Tax Accounts from CRA
- Form 1 or Form 2 Initial Returns
- Legal Advice and Consultation
What’s the difference between an Ontario company and a federal company?
You can think of it as two levels of government that do the same thing. The federal government incorporates companies through Corporations Canada and the Ontario government incorporates companies through the Ministry of Government Services.
There are a few differences to consider:
(1) name protection – you may get more name protection across Canada with a federal company. Keep in mind if you’re really concerned about your brand, you should look into a trademark (which can be done with a federal or provincial company).
(2) extra provincial registration – if you need to register as an extra provincial corporation in another province, it may be easier to effect the registration if you’re starting off with a federal company.
(3) portability – if you may be moving out of Ontario, we sometimes recommend a federal company because it’s more easily “transportable” – meaning that you just change the registered office address and file the extra provincial registration in the province where you’ll be moving.
That being said, 80% of our companies are Ontario companies, they’re quicker and easier to do.
Why is an Ontario company more expensive than a federal company?
The government filing fee for an Ontario company is $100 more than for a federal company. We pass this savings on to you. However, you shouldn’t let that cost difference govern your decision. Keep in mind that, unlike an Ontario corporation, there’s an additional annual filing for a federal corporation (called an annual return) which is separate and apart from your tax return and there is a $20 cost to file the return. This annual filing offsets the initial cost savings over time.
What are the tax advantages of incorporating?
We usually talk to clients about two main tax advantages:
(1) the small business deduction – this effectively lowers your corporate tax rate to about 15.5% on the first $500,000 that your company makes each year. It’s available on your active business income only (not income from passive investments) and is available to Canadian Controlled Private Companies (referred to as CCPC’s). Keep in mind that this is a deferral only meaning that once you pull money out of your company it becomes your personal income and is taxed at the marginal tax rates on your T1 return. To the extent that you can leave the earnings in the company, the deferral “lives” and you can use the additional money to grow and invest in your business.
(2) the lifetime capital gains exemption – if you sell your shares down the road, you may be able to take approx. $800,000 off the table tax free. The exemption is available for qualifying small business corporation shares and there are a few criteria you’ll need to meet.
There may be other tax benefits and you can always consult an accountant. If you need a referral to an accountant in your area, just let us know.
What does limited liability mean?
At law, a corporation is considered a separate legal person and can enter into contracts, borrow money and own property. As the theory goes, if your corporation is a party to a contract, the corporation alone should be liable for a breach of that contract. Or, if your corporation borrows money, it alone should be responsible to repay the loan. So, the concept of limited liability means that you personally are separate from your company and are not generally responsible for its debts, obligations or liabilities.
Limited liability is a general rule and there are definitely exceptions in the real world. For example, if your company borrows money from a bank, the financial institution usually requires that you personally guarantee repayment of the loan. Or, if your company wants to lease commercial space, the landlord may ask that you personally guarantee payment of the rent. There are ways to minimize personal guarantees, but it’s important to be aware that the limited liability protection of a corporation is not absolute.
You should also be aware that directors of a company have personal responsibility for certain debts and liabilities of the company. Specifically, if your company owes money for taxes or employee deductions to the government, you as a director can be held personally liable for these amounts.
What is the difference between shareholders, directors and officers?
Shareholders own the company (receive dividends or build equity if things go well), the shareholders elect the directors to manage the business and affairs of the company (the people who sit around the board room table discussing the bigger picture), and the directors in turn appoint officers to run the day to day business (the people on the street carrying out the marching orders). In smaller privately held companies (the one that you’ll first incorporate), the same person can wear all 3 hats. So, when you’re first starting up, you could be the sole director, officer and shareholder.
What is the difference between Inc, Ltd and Corp?
From a legal perspective in Ontario, there is no difference. They all take you to the same place –– an incorporated company. You’re allowed to choose your legal ending which basically involves 6 choices (Inc. or incorporated), (Ltd. or Limited) or (Corp. or Corporation). FYI – Inc. seems to be the most popular nowadays.
How long does it take to incorporate?
For Ontario corporations, the entire process can be completed within 2-3 business hours. That’s because the incorporation documents are filed automatically. For federal corporations, the process takes a bit longer. The reason is that the application goes in front of an examiner who will review the application and in particular the NUANS name search to make sure there are no conflicting names out there. Assuming there are no issues with your chosen name, federal companies are usually completed in a day or two.
I came across Ordower Law during my search for incorporating my company and all the review I read online is well deserved. My experience with Mathew, Jana and the team has been amazing. Ordower Law got my company incorporated federally less that 24 hrs and made is so easy and seamless, all over a phone call. If you are here reading the reviews 'cus you want to get started with your own company then I highly recommend Ordower Law. Thank you Ordower team for making it simple and easy with understanding the procedure and the laws, which is important for me as a new immigrant to this country and I am looking forward to a long term relationship for any legal services in future.
Great communication, knowledge, and advice. We incorporated my small business within a few hours. Highly recommend!
Matthew called me within an hour of my inquiry. He made me feel very comfortable with the whole process and briefly discussed my best options, how much it would cost and how long it would take. After conveniently e-transferring the fee, Jana called me within minutes to get a better understanding of how I wanted to structure my business. She was very friendly, relatable, knowledgeable and helpful. Overall, this experience took a daunting task and made it quick, easy and hassle free. Thanks guys!
This is my second time of dealing with Ordower Law Professional Corporation and I must say the process remains the same - impressive! Matthew was quick to respond to my questions, provide details of what is required and moved me on to resolution of my business set up needs. I must also highlight Jana's excellent support in helping clarify what was needed, letting me the potential bottlenecks and reassuring me that there were possible solutions available. Thanks guys!
Highly recommended!! After my initial phone call with Matthew, I knew the process of incorporating my business would be a breeze. Very professional, quick, and I really felt they had my best interest. Thanks again Matthew and Jana!
Great experience with Matthew and Sarah. Quick and professional service and they provided me with some tips and considerations for setting up my business beyond the scope of their work. I will definitely work with them again in the future.
I recently moved to the GTA to start a business. I wanted to make sure all the legal aspects are covered before I launch my business and that’s where Matthew came in. He was extremely approachable, down to earth, attentive and professional. He offered me excellent legal advice, things that I wouldn’t expect to be held legally accountable. Great experience working with him. Thanks Matthew
Working with Ordower Law to register my corporation was great. I called the 1-888 number and was talking right away with Matthew Ordower. I didn't have to go through an automated phone service to speak to someone. Matthew was patient with me and answered all my questions till I was confident with what I needed for initial start up and what to do after registration. I highly recommend them. Thanks again Matthew.
I found out about Ordower Law Professional due to the excellent search engine optimization of their web site. The quality and clarity of the information on their website convinced me to choose them to help me go through the incorporation process. Excellent and quick service.
I received my Inc. documents earlier than the stated website timeline, and was able to send the articles of incorporation to the Franchise the next day. Service was above my expectations. I am only 3 days in, but this service is the modern and efficient way to open a numbered company. And did I say, half price plus of conventional method.