If you’re looking to start a business in Ontario, one of the first things you’ll need to do is incorporate your business. Incorporation is the legal process of creating a corporation, which is a separate legal entity from its owners. In this blog post, we will discuss the process of incorporating a business in Ontario and provide some tips to help you along the way.

Step 1: Choose a Business Name

The first step in incorporating your business in Ontario is to choose a business name. Your business name must be unique and not already in use by another company in Ontario. You can check the availability of your chosen business name using the Ontario Business Name Search tool.

Step 2: Determine Your Business Structure

The next step is to determine the structure of your business. The most common structures are sole proprietorships, partnerships, and corporations. Incorporating your business means creating a separate legal entity, the corporation, that will own and operate the business. You can incorporate your business provincially or federally. Ontario Business Central can help you with the incorporation process.

Step 3: Prepare and File Articles of Incorporation

Once you have chosen your business name and determined your business structure, you will need to prepare and file Articles of Incorporation with the Ontario government. The Articles of Incorporation outline the purpose and structure of your corporation, including the number of directors, share structure, and other important details. You can file your Articles of Incorporation online through the Ontario Business Central website.

Step 4: Obtain a Business Number and Register for Taxes

After incorporating your business, you will need to obtain a Business Number and register for various taxes, including HST, payroll, and corporate income tax. You can register for these taxes through the Canada Revenue Agency website.

Step 5: Draft Bylaws

Bylaws are the rules that govern how your corporation will operate. They outline the responsibilities of the directors and officers, how meetings will be conducted, and other important details. You can use a template to draft your bylaws, or have a lawyer help you create them.

Step 6: Hold Your First Board Meeting

After incorporating your business and drafting your bylaws, you will need to hold your first board meeting. This meeting is where you will elect your directors and officers, adopt your bylaws, and approve any other important decisions.

Conclusion

Incorporating your business in Ontario can be a complex process, but it’s an important step in establishing a legal structure for your business. By following these steps and seeking professional advice when necessary, you can successfully incorporate your business and start operating as a corporation. Remember, it’s important to stay up to date with your corporate obligations, such as filing annual returns and maintaining your corporate records, to ensure your business remains in good standing.