It typically takes several business days to formally register the company and additional week or two to obtain the business number and register all required tax accounts with the CRA.
If you choose to incorporate, you’ll need to establish the appropriate type of corporation for your situation. Two common options are Standard and Professional corporations, with the choice depending on the industry in which you operate.
Professional corporations are intended for individuals offering specialized services, such as medical practitioners, lawyers, accountants, engineers, architects, and veterinarians. These corporations are typically owned by licensed professionals within the same field. While they offer limited liability for
shareholders—meaning their liability is usually limited to their investment in
the corporation—personal professional liability remains. As a result, professional liability insurance is often required. Additionally, professional corporations are subject to both corporate laws and industry-specific regulations, so after incorporation, you’ll likely need to apply for a Certificate of Authorization or a similar document from the relevant governing body.
Standard corporations, on the other hand, offer greater flexibility regarding shareholder status. These corporations can be owned by individuals or other corporations, regardless of the industry they operate in. Governed solely by corporate laws and regulations in the relevant jurisdiction, they typically involve fewer steps in the incorporation process. Shareholders also enjoy limited liability,
generally limited to their investment in the business. In some cases, business
insurance may not be necessary, as long as no personal guarantees have been
made, since the shareholder’s personal assets are protected from business
liabilities.
Both types of corporations offer valuable tax planning opportunities for shareholders — click here to learn more about these.
Finally, once the entity is created, business owners need to set up bookkeeping processes and get a good understanding of the tax filing requirements. In Canada, most businesses have to file tax returns annually. In addition, businesses are often required to pre-pay taxes during the fiscal year. It is therefore essential to be aware of the deadlines for tax compliance as the penalties and interest for failure to file or failure to remit taxes can add up to tens of thousands of dollars.
We understand that entrepreneurs can get very busy with day-to-day business activities and as a result, may not have enough time to maintain accounting records or file taxes on time. Therefore, we offer the following additional services:
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