Incorporating your business is critical to establishing a legal entity, protecting your personal assets, and building credibility. At GTA Accounting, we understand that this process can seem daunting, but we assure you we make it as simple as possible. We just need your basic information to determine how best to proceed. This blog outlines the essential details you’ll need to provide us, including whether you want a numbered or named company and whether you want to incorporate provincially or federally.

What Does Incorporation Involve?

Incorporation creates a separate legal entity for your business, allowing it to own assets, enter into contracts, and, most importantly, protect the owners from personal liability. This means your personal assets are safe, even if your business faces financial difficulties. Once incorporated, your business must also adhere to certain legal obligations, including annual filings and tax reporting.

There are two main decisions you’ll need to make during this process:

  • Name or Numbered Company: Whether you want a specific business name or prefer a numbered company.
  • Provincial or Federal Incorporation: Whether you want to incorporate within a specific province or nationwide.

Choosing Between a Named or Numbered Company

One of the first decisions when incorporating your business is whether to register a named company or a numbered company.

1. Named Company

A named company allows you to choose a specific name for your business that reflects your brand or the nature of your services. This name is more than just a label, it's a representation of your business and its values. For example, a consulting firm may choose a name like “ABC Consulting Inc.”

Before we can register a named company, a name search must be conducted to ensure that the name is unique and not in use by another business. This ensures that your brand is distinct and legally protected. You can perform a NUANS name search, which is required for federal incorporation and some provinces.

If you choose a named company, we’ll need the following information:

  • Desired company name (and up to three alternative options)
  • Nature of business activities to help us ensure the name aligns with your industry

2. Numbered Company

A numbered company is a straightforward option that doesn’t require a name search. The government assigns a unique number to your business, such as “1234567 Ontario Inc.” Numbered companies are ideal if you don’t have a specific brand name in mind or want to streamline the incorporation process.

This option allows you to operate quickly without additional name searches, making it ideal for holding companies or those that don’t need a public-facing brand immediately.

Provincial vs. Federal Incorporation

Another key decision is whether to incorporate provincially or federally. Depending on the scope of your business operations, each option has its own benefits.

1. Provincial Incorporation

Provincial incorporation allows your business to operate legally within a specific province or territory. This is the best choice if your business activities will be confined to one province and you don’t plan to expand to other regions.

For provincial incorporation, you will need to provide:

  • The province where you plan to operate
  • Your desired company structure (e.g., sole proprietorship, partnership, corporation)

Each province has its own set of rules and fees for incorporation, but generally, it’s simpler than federal incorporation if you’re focusing on one region. You can visit the CRA’s guide on incorporating provincially for more information.

2. Federal Incorporation

Federal incorporation gives your business the ability to operate across Canada. It offers nationwide brand protection, allowing you to expand into other provinces without re-incorporating. This is the best choice if you plan to scale your business beyond one province or territory.

For federal incorporation, we will need:

  • Confirmation of whether you’ve completed a NUANS name search (for a named company)
  • Information about your business’s expected activities across Canada

Federal incorporation may have higher administrative requirements, including registering in each province where you plan to do business. You can learn more about federal incorporation requirements.

Other Key Information We Need to Incorporate Your Business

Regardless of whether you choose a named or numbered company and whether you incorporate provincially or federally, we need additional details to complete the incorporation process. These include:

  • Business Address: The official address for your business’s headquarters.
  • Director Information: All company directors' full names, addresses, and Social Insurance Numbers (SIN).
  • Shareholder Information: Details about the shareholders, including allocation of shares.
  • Registered Office: A physical location for your business where legal documents can be served.

Why Work with GTA Accounting to Incorporate Your Business?

At GTA Accounting, we specialize in making the incorporation process seamless and compliant with all provincial and federal regulations. Whether incorporating a small local business or preparing to scale nationwide, our team will guide you through the process—from filing the necessary paperwork to ensuring you understand your obligations as an incorporated entity.

Conclusion

Incorporating your business is a significant step toward securing your legal structure and growing your operations. By providing GTA Accounting with the necessary preliminary information, including your decision on a named or numbered company and provincial or federal incorporation, we can ensure that your business is set up efficiently and thoroughly compliant with the law.

If you’re ready to incorporate your business or have questions about which option is best for you, contact GTA Accounting today. Let us help you take the next step in your business journey.