You might consider incorporation if you want you and your business to be protected from legal liability. Incorporation is governed by federal and provincial laws, and we’ll work with you to help you go through the process and give advice on what you need to incorporate your small business.
A federal corporation is a business incorporated under the Canada Business Corporations Act. It has the constitutional right to carry on business under its registered corporate name within any Canadian Province or Territory.
An Ontario corporation is a business incorporated under the Ontario Business Corporations Act. It has the right to carry on business under its registered corporate name anywhere within the Province of Ontario.
Types of Incorporation
- You may encounter legal problems or liabilities to creditors. You will be personally exposed to the debts and legal problems, if you are not incorporated.
- You will be subject to a lower corporate income tax rate. Corporations are subject to more favourable tax rates as compared to an individual tax rat
There are three primary forms of businesses, and we can advise you on whether you should incorporate under a corporation, or stay as a sole proprietorship or partnership.
A sole proprietorship is an unincorporated business that is owned by one person. It’s the simplest kind of business structure.
A partnership is an arrangement where two or more persons agree to combine their resources (money, labor, property, or skills) in the operation of a business. In return, each partner is entitled to a share of the profits or losses in the business. The business profits or losses are usually divided among the partners based on the partnership agreement.
A corporation is a separate legal entity, distinct from its shareholders. Incorporation offers your business a number of advantages including business name protection, transferability of business ownership, possible tax advantages and limited liability in the sense that you and the other shareholders are not responsible for the corporation’s debts.
We can also help you provide a NUANS name search report. The NUANS® is a computerized search system that compares a proposed corporate name or trade-mark with databases of existing corporate bodies and trade-marks. This comparison determines the similarity that exists between the proposed name or mark and existing names in the database, and produces a listing of names that are found to be most similar.
As a small business, you need capital to succeed, and we know it can be hard to start applying to loans, especially when a vast majority of companies get rejected. We will work with you to understand your financial situation, and determine how you should start applying to loans.
We will also help you prepare the application for multiple lenders, advise you through the process, and help you increase your chances of getting approved.
There are many programs that are offered by the CRA that will provide financial support for your small business.
Here are just some of the programs we can help you apply for.
Scientific Research and Experimental Development (SR&ED)
The Scientific Research and Experimental Development (SR&ED) program gives tax incentives to encourage Canadian businesses of all sizes and sectors to conduct research and development in Canada. There are two main benefits of the SR&ED tax incentives:
- You can pool your SR&ED expenditures and deduct them against your current-year income or keep them and deduct them in a future year.
- You can also earn the SR&ED investment tax credit (ITC) and use it to reduce your income taxes. In some cases, the Canada Revenue Agency (CRA) can refund the remaining ITC.
Industrial Research Assistance Program (IRAP)
The National Research Council of Canada Industrial Research Assistance Program (NRC IRAP) is an innovation assistance program for small and medium-sized businesses.
If you operate an innovative small or medium-sized business in Canada, the government can help you build your innovation capacity and take your ideas to market through financial assistance, advisory services and connections to the best business and R&D expertise in Canada.
For more information, see: https://nrc.canada.ca/en/support-technology-innovation/about-nrc-industrial-research-assistance-program
AgriStability and AgriInvest Programs for Farmers (ASAI)
The AgriStability and AgriInvest (ASAI) programs are a joint federal, provincial, and territorial business risk management program to help farmers.
AgriStability – a program that provides support when you experience larger income losses.
AgriInvest – a self managed government savings account designed to help producers:
- manage small income declines
- make investments to manage risk and improve market income