Incorporate in Ontario October 2020 OLD

INCORPORATE YOUR BUSINESS
IN ONTARIO

INCORPORATE
YOUR BUSINESS
IN ONTARIO

$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  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  Outstanding service. My incorporation process was simple and quick thanks to Matthew and Roisin. The service went above and beyond just incorporating. Matthew was able to guide and advise me on the best options for my needs, as well as educate me on how the corporation structure works. I greatly appreciate all of his good advice. It helps so much especially when just starting out.

    thumb Elena Koustova
    3/31/2020
  • 5 star review  Matthew and his team helped me incorporate in less than one day. Right from the start till the paperwork got completed the communication was clear and concise. Thanks for helping me and all others who are starting up.

    thumb Som Thee
    6/12/2018
  • 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  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

    thumb Al W
    10/03/2018
  • 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  Five star experieance! Matthew was wonderful to work with and easy to talk to. He walked me through the entire process. He suggested options I hadn’t thought of and gave sound advice. Had my incorporation # within 3 hours. I highly recommend his services for anyone going down the unknown path of starting or buying a business. I will be continuing to use his services going forward.

    thumb Bethana Bechtel
    12/12/2019
  • 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
  • 5 star review  Mr. Ordower was professional and fair. Sarah Also did a fantastic job. They gave me the piece of mind I needed and moved quickly!

    thumb Kevin O'Boyle
    6/05/2018
  • 5 star review  If you are reading this review I am guessing you are in the process of shopping around for an incorporation service. Look no further, the experience I had with Ordower Law was just GREAT!. Matthew is knowledgeable and is prepared to answers all questions you throw at him. He and his team made the whole process seamless and fast. I understand his services are not limited to just incorporation but also what a corporation might on the long run, I recommend Ordower Law over other online services that you might be looking at.

    thumb George Joseph
    2/25/2019

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Ordower Law Professional Corporation

2 St. Clair Avenue West, 18th Floor

Toronto, ON

M4V 1L5