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Incorporating a business online in Ontario is simple and can provide you with name protection, limited liability and tax advantages. You have two choices to incorporate in Canada, provincial and federal incorporation. Before choosing, check out the similarities and differences of both incorporation.
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An Introduction To Federal & Ontario Incorporation
There are two options to incorporate your business in Canada; you can incorporate either federally or provincially. Federal and Ontario provincial corporation has both similarities and differences. Incorporating provides many benefits and allows the owner to keep the personal wealth as much removed from the business.
Differences between Federal and Ontario corporations
GOVERNMENT FEE PROVINCIAL/ ONTARIO FEDERAL/CANADA Thegovernmentfeeis $360.00 Thegovernmentfeeis $200.00
NAME PROTECTION ONTARIO Providesnameprotectionwithintheprovinceonly FEDERAL Providesnameprotectionwithinthecountry
PROCESSING TIME FEDERAL Theprocessingtimeforafederal corporationis1-2businessdays,as thenameapprovalprocessismore rigorous. ONTARIO AnOntarioincorporationprocesscan becompletedwithinthesamedayas itissubmittedelectronically.
EXTRA-PROVINCIAL REGISTRATION ONTARIO ThereisnoneedforanOntario corporationtoregisterExtra-Provinciallyif thebusinessoperatesinasingleprovince. FEDERAL AFederalcorporationmustalsoregisterinthe ProvinceorTerritory,wherethecorporation headofficeislocatedandcanoperateinmore thanoneProvinceorTerritory.
Similarities between Federal and Ontario corporations
Limited Personal Liability Bothincorporationsarebeneficialtothebusinessownersasitkeepsthem awayfromthehigherriskofpersonalinjury,propertydamage,oranyother typeofliability. Tax advantages Anincorporatedbusinessbenefitfromalowercorporatetaxrateandother possibletaxadvantages. Citizenship Requirement Bothincorporationsrequireaminimumof25% ofthelisteddirectorstobe CanadianCitizensorPermanentResidents.
To Learn More: https://www.ontariobusinesscentral.ca/inc orporation-online.php