Kathy Tarrabain of our South side and West end offices takes pride in her ability to assist clients with the set up and maintenance of small business corporations.
Whether you wish to structure your business as a proprietorship, partnership, co-operative, a named corporation or a trade name operating under a numbered company, Kathy and her staff are happy to assist.
Clients may wish legal advice on Business registration, creating a custom logo, Trade name declaration, Business name (NUANS) search, Incorporation documentation and registration with Corporate Registry.
An Alberta incorporation package includes article of incorporation, by laws, ledgers, corporate seal, Shareholder and Director Meeting Minutes and a Corporate Minutebook.
There are many advantages and some disadvantages to setting up your business as a corporation.
The main advantage to incorporating is the limited liability of the incorporated company. In a sole proprietorship, the business owner assumes all the liability of the company when a business becomes incorporated. With a corporation, an individual shareholder’s liability is limited to the amount he or she has invested in the company.
A corporation has the potential for an unlimited lifespan; the corporation will continue to exist even if the shareholders die or leave the business, or if the ownership of the business changes, this gives it longevity and the ability to pass down for generations.
Selling a corporation is more straightforward and possibly more attractive on the market than a sole proprietorship or partnership.
It can be easier to grow and develop and raise money for a corporation.
The income tax advantages are numerous and include; determining when and how you receive income from the business, a tax deferral ability, a lower tax rate, income splitting, etc. The taxation is complicated and must be discussed with your accountant
Some disadvantages of incorporating is that it may actually be a tax disadvantage for your business in that there are no personal tax credits and limited flexibility for losses. Every dollar a corporation earned is taxed. As a sole proprietor, you may be able to claim tax credits a corporation could not.
You should discuss your personal situation with your accountant and , if some type of formal business structure is recommended, call Kathy to discuss your needs.