Barrie has become one of Ontario’s busiest places to start a business. Whether you’re opening a trades company, a shop on Dunlop Street or an online business run from home, incorporating can protect your personal assets and set you up for growth. The filing itself is quick, but there’s more to doing it properly than many owners expect. Here’s how the process works.
Step one: decide whether incorporation makes sense
Incorporation isn’t right for everyone on day one. A corporation is a separate legal person, which generally means its debts are its own and not yours. It can also offer tax planning opportunities once profits grow. But it comes with annual filings, separate bookkeeping and more formal record-keeping. Talk to your accountant and a lawyer about whether the timing is right for you.
Step two: choose a name
You can incorporate with a name, like “Lakeshore Renovations Inc.,” or as a numbered company, like “1234567 Ontario Inc.” If you choose a name, you’ll need a name search report to check that it isn’t too similar to an existing business. It’s also smart to check whether the name is available as a website domain and isn’t already someone else’s trademark.
Step three: file your articles of incorporation
Ontario corporations are created through the Ontario Business Registry online. You’ll file articles of incorporation setting out the company’s name, registered office address, the number of directors, and the classes of shares the company can issue. The government fee for an online Ontario incorporation is currently about $300. If everything is in order, the filing is often processed quickly.
The share structure is where many do-it-yourself filings go wrong. Using a single class of common shares might seem simpler, but it can limit your options later for bringing in partners, paying dividends to family members or planning for tax. A lawyer can help you set up share classes that fit your plans.
Step four: the work most people forget
Filing the articles creates the corporation, but it doesn’t finish the job. The company still needs bylaws, resolutions appointing directors and officers, share subscriptions and a share register. All of this lives in the minute book, the official record of the corporation. Ontario corporations must also keep a register of individuals with significant control.
You’ll need to open a business bank account, register with the Canada Revenue Agency for the accounts you need, and register for HST once your revenue passes the small supplier threshold of $30,000. Some businesses also need a municipal licence from the City of Barrie, depending on what they do.
If you have a business partner, now is the time for a shareholder agreement. It’s one of the most important documents you’ll ever sign.
When to call a lawyer
You can incorporate on your own, but a lawyer adds the most value when you have partners, plan to bring in investors, want to set up tax-friendly share classes, or simply want the minute book done properly from the start. Fixing a poorly organized corporation later usually costs more than doing it right the first time.
Incorporating in Barrie with Rozek & Co.
Our Barrie business lawyers handle incorporations, minute books and shareholder agreements, and our tax law and corporate law teams can help structure things properly. When you’re ready to hire, our Barrie employment lawyers can prepare your employment contracts too.
