So this week I took the “official plunge” I am now an INC. It is not cheap. Requires more paper work throughout the year & more money to my accountant. However, there are some positives:
- Gives my Biz creditability – INC has some clout!
- Protection – my business is separate from me and my family assets
- Tax advantages – if I can keep a good portion of my money earned in the business.
Here are the steps I took to incorporate (please note that these requirements change based on the type of business you are starting and legal requirements of where you live. Always seek professional advice. A good place to start is your local Small Business Development Centre. Enterprise Toronto was very helpful to me as was my good friends Pete, Shelagh, Brian and Roger. Thanks !
My five steps to registering a business:
- Complete a NUANS Name Search – required if you are going to incorporate. This is fairly cheap at $19.99 but be sure to complete a test one first (free) before paying as you may have to do it more than once if your name is taken.
- I did my incorporation online (but I did have a lawyer friend sit beside me). There are many online services in Canada to use for this but in all honesty it might be worth paying the extra couple hundred dollars to have it done by a professional body that is easily available and not afraid to answer your “legal” questions (Online service has disclaimers about not giving advice). I found the online incorporation a little confusing for a newbie. Also, it shows a low price but then at the end of the process they tack on extra stuff that you need to purchase and all of a sudden the price jumps up. One thing they do charge for is to get your HST number which if you call yourself is totally free!
- Wait for paperwork and minute book to show up!
- Get HST number – I called the 1800 number and it took about five minutes.
- Take paper work and get a business bank account.
Leigh Mitchell is the founder of Women In Biz Network.
Great info Leigh. I wish I had known 10 years ago when I incorporated my business. I hired a lawyer and paid $3000!