Guide to Corporate Registry in Strathmore
Many Canadians and Canadian immigrants have dreams of starting a business. To start your entrepreneurial journey, you will need to be familiar with Canadian rules and regulations.
There are many legal issues involved in starting a business. They can vary from one province to the next, making it difficult for newcomers. We can help you navigate the registration process, get permits and licenses, and comply with all regulations when you begin a business in Strathmore.
Choosing a Corporate Structure
Most businesses choose to operate as a sole proprietorship or partnership in Canada. Other structures, such as a limited partnership or cooperative, are available but they only apply to certain circumstances.
- Sole proprietorship: This is the easiest way to manage your business. Sole proprietorships can be owned and managed by you without any legal distinction between the business and yourself. You receive all profits and can report them on your personal income tax return. Your business is also responsible for all risks that you take.
- Partnership: Two or more people can run a partnership. Each partner contributes money and labor and has a right to a portion of the profits. A partnership agreement might be drafted by you and your partner. It will outline how profits are split, who is responsible, and other details. To draft such a document, you should consult a lawyer.
- Corporation: To incorporate or register your business, you will need to use this structure. This creates a separate legal entity that allows the company to take on risks without you being affected. Your corporation would have its own tax returns and legal contracts. You become the shareholder of your business if you incorporate it.
Choosing a Business Name
You will need a unique name before you open your business in Strathmore. You want to pick a name that is easy to remember and reflects your business. It is important to verify that the name is not already in use.
Start by doing a thorough Internet search for the name. Also, make sure to check the government’s national names databases, such Canadian corporate names and trademarks database (Nuans) and Canada’s business registries and trade names registered in your province. After you have found the right name, you will need to register it with the government.
After you have registered your business name, it is possible to register your business or incorporate it. For businesses that are incorporated, the provincial/territorial or federal incorporation process typically includes name registration. To protect your brand name, you may want to register a mark.
Corporate Registry in Strathmore
Your business can be incorporated at either the provincial or federal levels. This is called filing your articles of incorporation.
Federal incorporation offers better name protection and allows you to do business all around the country without the need for additional registrations. It does however require more paperwork.
Provincial incorporation, on the other hand, is simpler but offers fewer protections. You will need to register in every province you wish to do business. Federal incorporation costs between $200 to $250.
A business can be incorporated at either the provincial, or federal level, also known as filing articles of incorporation.
Federal incorporation gives you better name protection. You can do business all over the country, without needing additional registrations. Provincial incorporation is simpler but provides fewer protections. To conduct business in any province, you will need to register.
It is very similar to registering a company name when you incorporate your business. Online incorporation is possible through the Government of Canada website. Each province has its own incorporation portal
These systems are generally able to guide entrepreneurs through the process. A corporate lawyer might be needed for more complicated business structures. Complex scenarios include cases in which multiple shareholders are involved or where partnerships and corporations sit within a corporate group.
Incorporation offers many benefits including business legitimacy and the protection of personal assets. Your personal property is protected from lawsuits if a client sues your business.
A lawsuit against your business can only be brought to the extent of what your business owns, not what you own personally. If you do not incorporate, you may be personally liable in any lawsuits filed against your business.
Many entrepreneurs register a corporation to reduce their risk of being sued. If you do not wish to register, you can still enjoy similar protections by purchasing the right business insurance plan. If your company is sued, proper insurance will pay for the legal fees and damages. The right insurance for your business is essential even after incorporation.