Incorporate a Business in Ontario, BC and Canada

Our fee starts at $918 plus tax, which includes a comprehensive Incorporation Package covering all necessary items. Importantly, all government fees are included in this amount so you won’t incur any additional charges.

We typically require 5 to 10 business days to incorporate a business in Ontario and prepare a corporate minute book which contains all relevant documents for your new corporation.

A holding company is a corporation that owns shares of another company, often called an operating business or subsidiary corporation. Its primary objective is to protect the retained earnings and valuable assets of the businesses it owns. If safeguarding your company’s cash and assets is a priority, establishing a holding company is a prudent decision. Consult with the tax professionals at MadanCPA to incorporate a business in BC, including a holding company.

Yes, dividends can be paid to family members who are shareholders. However, the dividends paid must be reasonable for the work performed by the family member within the business. Additionally, the family member should be actively working at least 20 hours per week to qualify for dividend payments.

Making your spouse a shareholder can be an effective strategy for income splitting. However, be mindful of restrictions regarding the amount of dividends that can be paid to a spouse under the CRA’s TOSI (Tax on Split Income) rules.

A director is elected to the Board of Directors and is responsible for supervising the corporation’s upper management and making major decisions on behalf of the shareholders. Shareholders, on the other hand, are owners of the company. Directors can receive a fee for their services, while shareholders may receive dividends based on their ownership stake. Understanding the difference between shareholders and directors is important before you incorporate a business in BC, Ontario or Canada.

Minor children (under the age of 18) cannot directly own shares in your corporation. However, they can be beneficiaries of a trust that owns shares in your corporation, allowing for indirect ownership. Consult with our experts at MadanCPA to incorporate a business in Ontario with a Family Trust.

Creditor proofing refers to strategies designed to protect accumulated after-tax cash profits from potential creditors who may make financial claims against your corporation. One common approach to creditor proofing is to pay dividends from an operating corporation to a holding corporation. The cash held by the holding company is protected from the operating company’s creditors.

Yes, non-residents can serve as directors of a corporation. However, many provinces require that at least 25% of the directors be Canadian residents. Notably, British Columbia and Ontario allow 100% of directors to be non-residents..

Absolutely! Non-residents can be shareholders of a corporation, and they can own up to 100% of the shares.

A Canadian Controlled Private Corporation (CCPC) is a corporation that is incorporated either provincially or federally in Canada and is controlled by Canadian residents. CCPCs operating active businesses benefit from a lower corporate tax rate, starting from 12.2% on profits.

A corporation is considered a separate legal entity, meaning its debts and liabilities do not extend to your personal assets. Consequently, if the corporation is sued, your personal assets remain protected. Ensure you obtain advice from our tax professionals to incorporate a business in Ontario and protect your valuable assets.

A professional corporation (PC) allows licensed professionals—such as doctors, dentists, lawyers, and accountants—to provide services through a corporate entity rather than as individuals. We at MadanCPA can assist with incorporating professional corporations.

A Personal Real Estate Corporation (PREC) enables real estate agents to have their commissions paid to a corporation. Real estate agents earning high amounts of commission will benefit from a corporation’s relatively lower tax rate of 12.2% compared to 53% for sole proprietors. Our team at MadanCPA specializes in incorporating PRECs.

If your corporation's sales exceed $30,000 in a year, you will need to obtain a GST/HST number from the Canada Revenue Agency (CRA) and charge GST/HST to your customers. Note that some goods and services are exempt from GST/HST (e.g., medical services, residential rents), and services provided to clients outside Canada are ‘zero-rated,’ though they must still be reported on a GST/HST return. When you incorporate a business in BC, Ontario or Canada, you should ask your accountant about the CRA identification numbers your business requires.

Incorporating your business protects your corporation's name, preventing others from using it. This protection is vital for maintaining your brand identity and marketing efforts.

Investors can subscribe for shares in your corporation's capital stock. We create special share classes in your company’s articles of incorporation designed specifically for investors, allowing for flexible investment opportunities.

Yes, a corporation can purchase real estate, including vacant land or rental properties, providing a viable avenue for real estate investment. Real estate investors prefer to hold real estate through a corporation because of the liability protection afforded. However, the high corporate tax rate on passive income (50.17% in the Province of Ontario) is a significant deterrent to owning rental properties through a corporation.

The choice between paying dividends or salary depends on your specific financial goals. Dividends are not subject to Canada Pension Plan premiums, and they can simplify your payroll process. One of the main reasons to incorporate a business in BC, Ontario or Canada is to receive dividends. However, paying a salary may be beneficial if you want to contribute to your RRSP, increase your CPP benefits upon retirement, or take advantage of certain tax credits and deductions, such as tuition credits or medical expense deductions.