Incorporating in Alberta - Setting Up & Registering A Company
Incorporating a company can be a daunting task and when you look for information there is just too much to filter through. There are many considerations when you want to incorporate a business and KD would like to take any fear and misconceptions out of it for you for a hassle free process! Just going to a registry to incorporate a business will not give you everything you need and could create a bigger mess to fix down the road. Keep in mind they are simply a registration service and they are not professionals (ie lawyer or accountant) that can help ensure you are doing things properly from the start and planning for the future!
The first thing to consider is if you need to incorporate a business. There are 2 main considerations here, one being liability and the other being taxes. Incorporating can help minimize the liability of a business for the business owner. By incorporating, you are setting up an entity separate from yourself and therefore, moving most of the liability away from yourself. If you are in a business that could attract liability, it may be worth incorporating regardless of the tax outcome. Taxes are a big consideration in knowing whether to incorporate or not. This comes down to how much profit the company will net and how much the owners (you and partners) will be taking out. KD Professional can help you decide if incorporation is right for you.
Once you’ve decided you want to incorporate a business, the next thing to consider is the structuring of the corporation. Sometimes, structuring may include holding companies, trusts or other entities but that is something we would want to sit down and consult with you on to ensure you are taking the best route for you, the business and your family both now and in the future. The structuring of your articles of incorporation and the shares that will be issued can be very complex. We break it down in simple terms and help ensure we maximize the share structuring for control, income splitting and liability protection.
Another thing that is important when incorporating is having a completed Minute Book. Without this, you have no proof of ownership such as share certificates and nothing showing you actually control this corporation. On top of this, not having a minute book could create issues with CRA or other legal issues down the road. Finally, not having a minute book will make it very hard to sell your business down the road as there is not a good record of everything. If you ever sell the corporation down the road, you would want to sell the shares, not the assets. The sale of the shares means you may qualify for the Capital Gains Exemption and you may pay no tax when you sell!
Lastly, when you incorporate you also need to register a Business Number, which may include a GST number, Payroll number and/or an Import-Export number. This is something that you typically have to do on your own as no registry or lawyer is going to do this for you when you incorporate.
Let us take the hassle out of incorporating! KD’s incorporation packages include:
- Consultation on the articles, share structuring, Directorship and Officers
- Registration of Incorporation, Articles and Nuans (if applicable)
- Completed Minute Book
- Business Number Registration