Incorporating Your Partnership in Ontario: What You Need to Know

If you are running a partnership business in Ontario, you may be wondering about the advantages of incorporating your business. Incorporating a partnership can offer several benefits, including protecting your personal assets, limiting your personal liability, and providing tax advantages. However, incorporating a partnership is a complex process and requires careful consideration.

In this article, we will discuss the key steps you need to take to incorporate your partnership in Ontario.

Step 1: Choose a Name for Your Corporation

The first step in incorporating your partnership is to choose a name for your corporation. Your chosen name should be unique and distinguishable from other registered business names in Ontario. You can check the availability of your chosen name on the ServiceOntario website.

Step 2: File Articles of Incorporation

Once you have chosen a name for your corporation, the next step is to file articles of incorporation with the Ontario Ministry of Government and Consumer Services. The articles of incorporation outline the details of your corporation, including its name, registered office address, number and class of shares, and the names and addresses of the corporation’s initial directors.

Step 3: Draft a Partnership Agreement

As a partnership, you likely already have a partnership agreement that outlines the rights and responsibilities of each partner. However, as a corporation, you will need to draft a new partnership agreement that reflects your new corporate structure. Your partnership agreement should outline the roles and responsibilities of your directors, the rights and obligations of your shareholders, and the distribution of profits and losses.

Step 4: Obtain Necessary Permits and Licenses

Depending on the nature of your business, you may need to obtain additional permits and licenses to operate as a corporation. You can check the requirements for your business on the ServiceOntario website.

Step 5: Register for Taxes

As a corporation, you will need to register for various taxes, including the Harmonized Sales Tax (HST) and the Canada Pension Plan (CPP). You can register for these taxes on the Canada Revenue Agency website.

In conclusion, incorporating your partnership can offer several benefits, including protecting your personal assets and limiting your personal liability. However, the process of incorporating a partnership in Ontario can be complex and requires careful consideration. If you need help incorporating your partnership, consider consulting with a lawyer or a professional incorporation service provider.

We hope this article has provided you with valuable insights into incorporating your partnership in Ontario. If you have any questions or comments, please feel free to reach out to us.