Incorporate in Ontario – NEW

INCORPORATE YOUR BUSINESS
IN ONTARIO

INCORPORATE
YOUR BUSINESS
IN ONTARIO

Work with an Incorporation Lawyer
From Start to Finish

Work with a Lawyer
From Start to Finish

  • Legal and Practical Advice 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
All Required Filings/Documents
Easy Online Process/Quick Turnaround
With “Do-it-Yourself” Pricing

Matthew Ordower, Lawyer
Find out more about us.

“We’ve helped many people incorporate in Ontario. Check out our Google Reviews to see what our clients have to say. If you want more info, please get in touch.”

Matthew Ordower
Find out more about us.

$499-$699 Federal

$599-$799 Ontario

Incorporation Packages

PRICING

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.

PERSONAL SERVICE AND ADVICE

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.

INCORPORATION PROCESS

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.

MINUTE BOOK

Your Electronic Minute Book includes –

  • – Corporate Summary
  • – Articles & Certificate of Incorporation
  • – Corporate By-Laws
  • – Director & Shareholder Resolutions/Consents
  • – Share Subscription & Share Certificates
  • – Registers & Ledgers
  • – Nuans Name Search Report
  • – Form 1 or Form 2 Initial Returns

WHY INCORPORATE WITH ORDOWER LAW?

Ordower Law provides the value of an experienced corporate law firm for the price of a do-it-yourself on-line service

You get:

  • The personalized service and advice of a full-service law firm,
  • The price and turnaround time of the do-it-yourself/self-help services,
  • The efficiency of working with a law firm that uses the latest technologies, and
  • Legal advice and resources for your business as it grows.

Incorporating with a Lawyer:

  • PROS: Advice, Accuracy and Customization
    Although not terribly complex, incorporating is still a legal process that requires you to understand how to incorporate as well as the NUANS name search process, the articles of incorporation and back end paperwork (which deals with the procedural rules (known as by-laws), election of directors, appointment of officers and the issuance of shares to name a few). That’s a lot to consider. If you try to incorporate yourself, you run the risk of getting some things wrong. Plus, you’ll spend your time and energy away from what you really need to do, which is building your business. A law firm can provide legal and practical advice and a customized solution for your particular circumstance.
  • CONS: Cost and Timing
    Traditional law firms generally charge $1200-$1500 + tax for a corporation and organizational documents and the process may take a couple of weeks or so.

Do-it-yourself Online Incorporation Services:

    • PROS: Cost and Timing
      An online incorporation service provider will generally charge $600 – $900 + tax for a corporation and organizational paperwork. These services can usually have everything done within a day or two.
    • CONS: No Legal Advice + One Size Fits All Approach + Hidden Fees
      A online incorporation service will not provide legal advice. In fact, they are careful to note that they do not provide legal services on their websites. In terms of process, you are generally left on your own to fill in forms at a time when advice and guidance from a lawyer is important. Also, most of the online services provide standard paperwork and limited options in terms of customizing your articles and share provisions and they may not complete all necessary filings for you, including the Form 1 – Initial Return. Finally, be careful about hidden fees that pop up along the way when you’re processing your incorporation online – for example, many services will charge for HST numbers when you can easily obtain an HST number and other tax accounts for free directly from CRA.

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  Fabulous service and expertise. Matthew is a pleasure to deal, providing quick and professional advice. We were able to register our corporation and paperwork in a seamless transaction very quickly and efficiently. Would highly recommend.,

    thumb Parvesh Benning
    7/25/2019
  • 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  Great communication, knowledge, and advice. We incorporated my small business within a few hours. Highly recommend!

    thumb Kyle Bannon
    12/13/2019
  • review rating 5  Wow! This is THE place to go for incorporation! Fabulous service! It was all done within a couple of hours, and I consulted with two lawyers and asked questions during the process. They express openness to questions in the future. I had a negative experience a few days ago with another on-line service ... It was a relief to find Ordower which offered prompt clarity from the website to the consultation. Highly recommend!

    thumb Dorethy Luyks Ledgerwood
    8/11/2018
  • review rating 5  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
  • review rating 5  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.

    thumb Milica Kostic
    3/31/2018
  • review rating 5  What a great experience! I needed to incorporate a company quickly and didn’t know where to turn. I found Ordower Law online and glad I made the call they were incredibly personable, proffesional and extremely knowledgeable and walked me through the whole process! I won’t hesitate to used them again or recommend them to my friends and colleagues.

    thumb Adam Rayner
    6/03/2020
  • review rating 5  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!

    thumb Shola Jonathan Oludipe
    8/15/2018
  • review rating 5  Had a great experience with Matthew and Jana. I hired them to help me with some corporate legal issues. They got me exactly what I wanted, working very efficiently and quickly (I went to another firm befor them and was told it would take 5 times as long as it took Matthew to get what I hired them to do). They were great at explaining a lot of info about the process and the law in a clear and concise way that’s easy to understand. I left very happy. Highly recommend. Josh

    thumb Joshua Goldberg
    3/22/2018
  • review rating 5  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

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Ordower Law Professional Corporation

2 St. Clair Avenue West, 18th Floor

Toronto, ON

M4V 1L5