Incorporation

A business often begins as a sole proprietorship and then, as it grows, is carried on through a corporation. As with anything else in life, carrying business through a corporation has its:

PROS:

CONS:

  • An additional layer of tax – corporate and individual (once the funds are paid out either as dividends or salary);
  • Maintenance costs, such as annual corporate meetings, maintenance of records;
  • Compliance costs, such as annual corporate filings, bookkeeping, financial statements and tax returns;
  • Dealing with other shareholders, including minority shareholders, however, that may be made much easier by putting a Shareholders' Agreement in place.

The decision on whether to incorporate will depend on many individual factors. We analyze those factors and advise our clients based on the results on a daily basis.

We Can Incorporate Your Company Under Provincial or Federal Legislation

You may incorporate under either the Business Corporations Act of British Columbia or under the federal legislation, the Canada Business Corporations Act. The compliance rules are slightly different under each statute. There are advantages and disadvantages to both. Companies can, after incorporation, change their status from federal to provincial or from provincial to federal.

The majority of British Columbia business owners choose to incorporate provincially. Which incorporation jurisdiction will fit your goals depends on your set of facts.

We can assist you in deciding this question by finding the balance between your current goals, future plans, costs and the compliance burdens of each type of incorporation.

We Can Be Your Registered and Records Office

Granville Law Group provides registered and records office services to corporations. That will ensure that no annual filings are missed and all the documents are in place in compliance with the corporate law. That will ensure that your company is never dissolved for failure to file and you will not require a Corporate Restoration.

Schedule a Free, 30-Minute Consultation

Come into our office and tell us about your situation. We will tell you how we can assist you with your legal needs. Call Granville Law Group at 604-757-9385 or arrange a meeting using our online form.