Provincial or Federal? Where Should You Incorporate Your Business?
If you are planning on incorporating your business you will need to decide if you want to do so Federally or Provincially. There are few things to consider:
- If you incorporate your business federally you have the right to carry on business using your corporate name in any province in Canada. There will be additional paperwork required to operate in different provinces but that will not prevent your from carrying on the business.
- If you incorporate in Ontario you may be able to use your corporate name in other provinces however, this is not guaranteed.
- Federally incorporated companies also have one additional filing requirement each year.
- Companies can be incorporated federally for $200 (using their online service) and $360 for the incorporating in Ontario. Unless you are registering a numbered company you will also be required to pay for a NUANS search for your proposed name. I will discuss the pros and cons of numbered versus named companies in my next post.