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.

  • 5 star review  After viewing countless similar companies' websites and ads on google, I found "OrdowerLaw" through a google search. They are very responsive in their communication, courteous and pleasant, transparent in their dealings, effective and efficient in performing their job, and above all very affordable. They set up a Federal Corporation for me within one business day. I visited them once in their offices and explained them my requirements. they did everything and finished the job in one day. Roman and Mathew were really helpful!

    thumb Maroof Hussain Sabri
    10/11/2018
  • 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  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
  • 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  Super easy to work with and very helpful on getting my 1st corporation set up. Very clear, fast and thorough. They were a great price as well. I would definitely recommend. Thank you!

    thumb Michael Antonakos
    6/08/2018
  • 5 star review  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
  • 5 star review  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
  • 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  Excellent service!! Very responsive and made the process of incorporating look so much easier. Hands down the best law firm I have personally engaged with. Now a loyal customer!!

    thumb Harshil Sanghavi
    8/16/2019
  • 5 star review  I worked with Jana to incorporate my business. The process was quick and stress-free leaving me amazed. She kept me informed every step of the way, calling to provide updates and making sure I knew all my options before we proceeded. As a new business owner having the Ordower Law team guide me through this process was very much appreciated and I would highly recommend them to everyone!

    thumb Lettsie Phillips
    4/08/2020

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Ordower Law Professional Corporation

2 St. Clair Avenue West, 18th Floor

Toronto, ON

M4V 1L5