Incorporate Federally

FEDERAL INCORPORATION

FEDERAL INCORPORATION

Fast. Easy. Affordable.
& Done Right.

Fast. Easy. Affordable.
& Done Right.

  • Work Directly with a Business Lawyer
  • Personalized Service & Advice on Structuring Your Company
  • All Government Filings & Minute Book Documents Included
  • Efficient Process by Phone/Email or in Person
  • Same Day Service – Ontario Incorporation Takes 1 Day
Ontario’s #1 Incorporation Lawyers
Personalized Service & Advice
Easy Process by Phone/Email

Matthew Ordower, Lawyer
Find out more about us.

“We’ve helped many people incorporate in federal companies. 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.

All Inclusive Packages

1 Shareholder
$499 Federal
$599 Ontario

2-3 Shareholders
$599 Federal
$699 Ontario

*NEW CLIENT PRICING*
*JUST MENTION THE AD*
*NEW CLIENT PRICING – JUST MENTION THE AD*
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

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.

  • review rating 5  Exceptional service for incorporation! Matthew and his team explained all details very clearly, answered on every point, provided additional valuable advice, and helped me to incorporate fast and at a very reasonable price. The whole process went very well, way above and beyond anything I was expecting or hoping for. Highly recommended, thank you!

    thumb Eldar G
    9/11/2018
  • review rating 5  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!

    thumb Lindsay Montgomery
    10/12/2018
  • review rating 5  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
  • review rating 5  I just had my business incorporated with Matthew and his team (shout outs to Sarah and Janet). The team took the time to answer all my questions and concerns. Everything was done in both a time efficient and thorough matter. I am more than pleased with their services. Thanks guys! - Sean

    thumb sean lum
    3/22/2018
  • review rating 5  I needed to incorporate on short notice and was recommended by a friend to contact Ordower. When I first reached out they got back to me right away and their service and expertise was excellent. They walk you thru what you need to know and they worked incredibly fast to get me up and running. In addition their follow up with other recommendations such as banking and insurance solutions were excellent.

    thumb don bruce
    5/12/2020
  • review rating 5  If you are in search of a true professional who'd handle your legal matter with no-nonsense approach, Matthew is definitely your guy! My business partner and I are extremely satisfied with his services, particularly at how well the entire Ordower team coordinated to get things done well before the deadline. Matthew delivered everything that was promised and I’d recommend his services to anyone in need without any reservations.

    thumb Alkam Airkin
    7/18/2019
  • review rating 5  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
  • review rating 5  I was being helped by Matthew and I am extremely satisfied with his work. He is very responsive, helpful, and supportive. I needed an incorporation service and I could not recommend this firm more. I will definitely bring my business back to them in the future.

    thumb Dom Mazzuca
    7/06/2020
  • review rating 5  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
  • review rating 5  The assistance I received in setting up my corporation through Ordower Law was impeccable. I was a bit intimidated to make the initial call but I'm glad I did. From the introductory call to the delivery of my articles of incorporation, Both Matthew and Jana delivered on what they promised which was a smooth, efficient and relatively quick setup of my corporation.

    thumb Wealth ND Inc.
    9/11/2018

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Ordower Law Professional Corporation

2 St. Clair Avenue West, 18th Floor

Toronto, ON

M4V 1L5