Choose Federal vs Provincial Incorporation

Federal incorporation through Corporations Canada gives your business name protection across all provinces and the ability to operate nationwide. Ontario provincial incorporation is faster and costs less if you only operate within the province. We assess your business plans and recommend the incorporation type that avoids unnecessary fees and future re-registration costs.

Run the NUANS Search First

Before filing articles of incorporation, a NUANS name search confirms your proposed business name does not conflict with an existing corporation or trademark. Filing incorporation documents with a conflicting name leads to rejection, wasted government fees, and delays. We run the NUANS report and review results before you commit to any name.

Design a Flexible Share Structure

Your incorporation share structure should include common shares, preferred shares, and multiple classes from day one. Adding share classes later requires articles of amendment and additional government fees. A properly designed share structure at incorporation supports future income splitting, estate freezes, and investor participation without costly restructuring.

Access the Small Business Tax Rate

Once you incorporate, your corporation qualifies for the Small Business Deduction on the first $500,000 of active business income, taxing it at roughly 12.2% combined federal-Ontario versus up to 53.53% personal. This incorporation tax advantage alone saves tens of thousands annually compared to operating as a sole proprietorship.

Set Up Your Minute Book Properly

Your incorporation minute book must contain articles of incorporation, bylaws, director resolutions, share certificates, and a register of directors and shareholders. CRA and lenders request these records regularly. An incomplete minute book after incorporation creates compliance issues, delays financing, and can trigger CRA questions during corporate tax reviews.

Register Your CRA Business Number

After incorporation, register for a Business Number with CRA immediately. Your BN is required for corporate tax filing, and late registration can delay your first T2 return. We handle BN registration as part of your incorporation setup so your corporation is CRA-ready from the start with no gaps in compliance history.

Time Your Incorporation Strategically

Incorporating mid-year means your first fiscal period can be shorter than 12 months, which affects instalment thresholds and Small Business Deduction calculations. We time your incorporation date to align with your revenue cycle so your first corporate tax year maximizes deductions and defers tax obligations as long as legally possible.

Transfer Assets Using Section 85 Rollover

If you are moving an existing sole proprietorship into a new corporation, ITA section 85 lets you transfer assets at tax cost and defer the capital gains or recapture that would otherwise be triggered. Without a proper section 85 election filed with your incorporation, the transfer is treated as a sale at fair market value — creating an immediate tax bill.

Plan Salary vs Dividend From Day One

Your incorporation creates two compensation paths — salary and dividends — each with different tax consequences. Salary is deductible to the corporation and creates RRSP room; dividends avoid CPP but generate no contribution room. We model both options at incorporation so your compensation strategy is tax-efficient from the first fiscal year.

File Your Initial Annual Return

Ontario requires an annual return filed within six months of your incorporation date, and every year after by the anniversary. Missing this filing results in penalties and can lead to involuntary dissolution. We calendar your annual return deadline at incorporation so your corporation stays in good standing with the Ontario Business Registry from the start.