Categories
Business Incorporations
Manpasos Accounting Services Inc. offers low cost business incorporation services to any type of business.
Corporation
A corporation is a legal entity that has its own legal personality separate from the owners and the persons involved in managing the business. The creation of a corporation occurs following the proper filing of Articles of Incorporation.
Every corporation is made up of directors, officers and shareholders.
To learn more or to set up an appointment, please contact us.
There are three main reasons why you should incorporate your business:
1. Save Your Money
·Shareholders of corporations have limited liability for business risks.
·You can use a corporation to save tax or to defer paying tax to a later date because the small business corporate tax rate for the first $400,000 in income is about 17% compared to the top personal tax rate of about 44%.
·Unlike partnerships where partners are usually personally liable for the business acts of their partners, in a corporation shareholders are not personally liable for the acts of the directors, officers or other shareholders (except in certain rare exceptions).
·Corporations don’t have withholding taxes, CPP or EI deducted by the companies that hire their services
·Corporations which earn active business income outside of Canada can dramatically reduce their effective corporate tax rate by setting up a second corporation in a country with a good tax treaty with Canada such as Barbados.
2. Improve Your Image
·Incorporated businesses have a better “image” than unincorporated businesses
·Incorporated companies are more likely to attract investors than a sole proprietor or partnership.
·A Canadian corporation is well respected worldwide and is particularly well suited to market goods and services in North America
3. Make Yourself More Attractive
·Employers in many business sectors, particularly the motion picture and TV production and construction sectors, prefer to hire corporations rather than individuals to save money and increase certainty.
·Corporations cannot be deemed to be employees as often happens when employers hire individuals as independent contractors.
·It is easier to find work if you offer your services as a corporation. Some technical tax rules make this trick work better if you have a number of different businesses that hire your corporation’s services (and potentially harmful if you work for only one company).
·Customers in North America are often reluctant to buy goods and services from foreign based corporations. If you live outside North America but wish to sell your goods and services there consider setting up a British Columbia corporation with a virtual office in British Columbia. British Columbia allows 100% of the directors, officers and shareholders of the corporation to be non-residents of Canada
Incorporating in Ontario:
We offer Ontario incorporations because many of our clients want to locate their head office in central Canada. Ontario requires at least one Canadian-resident director.
7 Easy Steps to Incorporating in Ontario:
1 Choose three alternate names for the corporation with first, second and third choices. These names will need a NUANS search before the corporation can be filed. Unique names are more likely to be approved. Common or popular words are often rejected.
Note: You may choose a numbered company for faster results and change to a named company later. The Government automatically issues the numbers.
2 Choose the legal ending for your company to be either: Limited (Ltd.), Corporation (Corp.) or Incorporated (Inc.).
3 If you wish, choose the date and time the incorporation is to take effect.
4 Supply the full names and street addresses of the directors (one of whom must reside in Canada), officers and shareholders.
5 Provide the Ontario street address for the corporation’s registered office. Post office box numbers are not allowed. If you don’t have an address in Ontario, we can arrange for an Ontario lawyer to act as registered office. Those fees are charged separately from the incorporation cost, and are currently approximately $100 plus applicable tax per year. Please let us know whether you need this service when you order your Ontario corporation.
6 Decide upon a simple or complex share structure with common or preferred shares (Class “A” or “B” shares). We can help you decide what will be best. And remember that in most cases, the share structure of any corporation can be changed at any time with the consent of the affected shareholders for only a few hundred dollars in legal and government filing fees.
7 Lastly, confirm with us that you wish to go ahead with your incorporation.
Manpasos Accounting Services Inc. offers low cost business incorporation services to any type of business.
Corporation
A corporation is a legal entity that has its own legal personality separate from the owners and the persons involved in managing the business. The creation of a corporation occurs following the proper filing of Articles of Incorporation.
Every corporation is made up of directors, officers and shareholders.
To learn more or to set up an appointment, please contact us.
BENEFITS OF INCORPORATING YOUR COMPANY
There are three main reasons why you should incorporate your business:
1. Save Your Money
·Shareholders of corporations have limited liability for business risks.
·You can use a corporation to save tax or to defer paying tax to a later date because the small business corporate tax rate for the first $400,000 in income is about 17% compared to the top personal tax rate of about 44%.
·Unlike partnerships where partners are usually personally liable for the business acts of their partners, in a corporation shareholders are not personally liable for the acts of the directors, officers or other shareholders (except in certain rare exceptions).
·Corporations don’t have withholding taxes, CPP or EI deducted by the companies that hire their services
·Corporations which earn active business income outside of Canada can dramatically reduce their effective corporate tax rate by setting up a second corporation in a country with a good tax treaty with Canada such as Barbados.
2. Improve Your Image
·Incorporated businesses have a better “image” than unincorporated businesses
·Incorporated companies are more likely to attract investors than a sole proprietor or partnership.
·A Canadian corporation is well respected worldwide and is particularly well suited to market goods and services in North America
3. Make Yourself More Attractive
·Employers in many business sectors, particularly the motion picture and TV production and construction sectors, prefer to hire corporations rather than individuals to save money and increase certainty.
·Corporations cannot be deemed to be employees as often happens when employers hire individuals as independent contractors.
·It is easier to find work if you offer your services as a corporation. Some technical tax rules make this trick work better if you have a number of different businesses that hire your corporation’s services (and potentially harmful if you work for only one company).
·Customers in North America are often reluctant to buy goods and services from foreign based corporations. If you live outside North America but wish to sell your goods and services there consider setting up a British Columbia corporation with a virtual office in British Columbia. British Columbia allows 100% of the directors, officers and shareholders of the corporation to be non-residents of Canada
Incorporating in Ontario:
We offer Ontario incorporations because many of our clients want to locate their head office in central Canada. Ontario requires at least one Canadian-resident director.
7 Easy Steps to Incorporating in Ontario:
1 Choose three alternate names for the corporation with first, second and third choices. These names will need a NUANS search before the corporation can be filed. Unique names are more likely to be approved. Common or popular words are often rejected.
Note: You may choose a numbered company for faster results and change to a named company later. The Government automatically issues the numbers.
2 Choose the legal ending for your company to be either: Limited (Ltd.), Corporation (Corp.) or Incorporated (Inc.).
3 If you wish, choose the date and time the incorporation is to take effect.
4 Supply the full names and street addresses of the directors (one of whom must reside in Canada), officers and shareholders.
5 Provide the Ontario street address for the corporation’s registered office. Post office box numbers are not allowed. If you don’t have an address in Ontario, we can arrange for an Ontario lawyer to act as registered office. Those fees are charged separately from the incorporation cost, and are currently approximately $100 plus applicable tax per year. Please let us know whether you need this service when you order your Ontario corporation.
6 Decide upon a simple or complex share structure with common or preferred shares (Class “A” or “B” shares). We can help you decide what will be best. And remember that in most cases, the share structure of any corporation can be changed at any time with the consent of the affected shareholders for only a few hundred dollars in legal and government filing fees.
7 Lastly, confirm with us that you wish to go ahead with your incorporation.