Incorporate in Ontario October 2020 OLD

INCORPORATE YOUR BUSINESS
IN ONTARIO

INCORPORATE
YOUR BUSINESS
IN ONTARIO

Done Right by Business Lawyers
Immediate Service. Competitive Pricing.

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

Matthew Ordower, Lawyer
Find out more about us.

“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.”

Matthew Ordower
Find out more about us.

$599 Federal

$699 Ontario

Incorporation Packages

  • 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

Incorporation Packages for Professionals

SOME FAQ’S ABOUT INCORPORATION

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.

  • 5 star review  Great experience working with Ordower Law. Jana was great in sitting down with me and explaining all the ins and outs. It was reassuring to meet in person with a knowledgeable professional who took the time to explain the incorporation process. The follow up from the rest of the team, Roisin and Matthew was timely and very useful. They were great with recommendations regarding banking/accounting, follow-ups, the whole lot. Highly recommended.

    thumb Goran B
    12/11/2019
  • 5 star review  Opening a corporation is a big step and Jana Lambert of Ordower Law made it so easy. She was not only very knowledgeable and professional, she demonstrated how much she cared about us as she walked us through the process step by step. Her advice was so very helpful helping us plan for the future and she also showed us how to save money by cutting unnecessary costs. Once all the relevant information was obtained our company was incorporated within a few short hours. Thank you to you and your team for doing a truly phenomenal job!

    thumb Sandra Scioscia
    4/10/2019
  • 5 star review  Very quick! I am very happy with Ordower Law. Matthew Ordower handled my needs directly. I needed to establish a corp. quickly and Ordower Law had my needs met efficiently and within the same morning that I called.

    thumb Mark Smethurst
    8/31/2019
  • 5 star review  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.

    thumb Julie Fortin
    3/02/2019
  • 5 star review  Very friendly and courteous service. All my questions were answered promptly and I received all my documents within 24 hours of visiting! Super pleased with the service!

    thumb Marcelle Mariani
    12/21/2019
  • 5 star review  Jana was amazing! She was informative, professional and made the process of incorporating simple. She sent me links from the College of Nurses to help me make an informed decision. I was very impressed with their services. I would highly recommend!

    thumb Darlene Esteves
    7/01/2020
  • 5 star review  If you want to have real experts guide you through the process then you need to talk to Matthew’s team. The moment I walked into their office I knew I was in the right place. All my questions were answered promptly and I was given the best options given my asks. The paper process was as simple as giving them my ID and telling them what my business name would be. That was it. The next day I received all the relevant papers and emails with the contacts they said they will share with me in order to kick start my business. Thank you very much guys. It was a real pleasure dealing with real professionals.

    thumb Catalin Vint
    5/29/2019
  • 5 star review  Working with Jana was an excellent experience. Everything was explained in detail as it pertained to the services and steps that would be taken and Ordower Law delivered. Completely incorporated and paperwork in about 3 hours.

    thumb Tony Di Bratto
    9/20/2019
  • 5 star review  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.

    thumb Morgan Smith
    4/05/2019
  • 5 star review  What a great experience! I made a query online, and got a response back in less than 20 minutes. The whole incorporation process literally took a few hours, and that included a personal discussion with Jana. I would describe the process as being easy and efficient. Of course, the price was right too. Highly recommended for entrepreneurs such as myself.

    thumb Anita Windisman
    7/12/2018

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Ordower Law Professional Corporation

2 St. Clair Avenue West, 18th Floor

Toronto, ON

M4V 1L5