An incorporation refers to the creation of a new corporation. AlbertaIncorporate.com can have your new Alberta business formed as early as today.
We are unabashedly not shy in endorsing corporations as the vehicle that should be used to structure your business. There are several elements of being a corporation that are not available in structures such as a partnership or operating as a sole proprietor.
We do, however, offer every structure for business formation (except unlimited liability companies, limited liability partnerships and joint ventures). We want to assist you in business. So if you want to go with a different method of organizing your business we will help you.This does not change our view that corporations are the best vehicle for doing business in Alberta.
Corporations offer advantages that other structures often cannot:
Corporations provide their owners, their shareholders, limited liability. This feature is critical to people engaged in business. Whether you are starting a home-based business or have an idea that will span a multinational corporation, your risk in the corporation is the investment in the shares you own.
The owners of a corporation are shareholders. A corporation is a distinct legal entity from its shareholders.
For example purposes, let's consider Mark Doe who is beginning to operate as a web designer in Calgary. Mark wants to be in business for himself. Mark can form a corporation or function as a sole proprietor.
Mark starts Mark's Web Design Inc. Although Mark is completing the same nature of work, work completed by Mark's Web Design Inc. is distinct from Mark Doe. Customers will be invoiced by Mark's Web Design Inc. If there are any disputes, Mark's Web Design Inc. faces liability, not Mark Doe.
Mark's investment risk is limited to his shares of Mark's Web Design. His personal assets are separate and apart from his corporation.* The protection offered by limited liability through a corporation cannot be understated in the event that a business faces disputes.*The exception to this is if mark commits fraud on suppliers, lenders, investors, customers or the general public. In the event that fraud has occurred, Mark can face significant consequences including having the protection of the corporate veil lifted.
Awareness By Lenders, Investors And Consumers
Corporations are the most prevalent form of business structure across Canada. While a limited partnership can afford limited liability to partners from one-another, most lenders, investors and consumers struggle to understand how a registered partnership functions. With a corporation there is general awareness and expectation within the marketplace which allows your business to be readily accepted.
Continuing In Perpetuity
Corporations that complete Annual Returns continue in perpetuity. They do not come to an end as a result of the incapacitation of a shareholder. This is not the case with many other business structures, such as partnerships.
Historically, entrepreneurs resisted incorporating until they had made profit because of the costs associated with incorporating and annual maintenance. There was also the inconvenience of having to attend to some office - a registry, a lawyer, an accountant or to the Government of Alberta - to complete filings. AlbertaIncorporate.com eliminates these concerns. When you start a new company, you can be in business by the end of today for less than $500.00. Services necessary to maintain your business are offered online and are easy to complete.
Yes, we understand that even $500.00 is a lot of money for some new entrepreneurs. But you are about to be in business. You likely have a plan to recover your investment.
You are going into business to make a profit. We are assuming your success just as you are assuming you will be profitable. Corporations allow shareholders to plan for how money is paid to shareholders. This can be done in the form of dividends paid by the company, something which cannot be afforded if you are operating as a sole proprietor.
Receiving Investments And Exiting
A corporation can sell shares to new investors to raise capital or to allow existing shareholders an exit from the business.
Unlimited Ability To Transition And Be Creative
You can structure your corporation to do whatever suits your business needs. This can include using the corporation as a holding company for other businesses; including your corporation in a family trust; using your corporation to hold real property and other investments.
Are you ready to create your new corporation? Click here to begin!