Incorporating Your Small Business In British Columbia

Incorporating your small business in British Columbia can provide numerous benefits, including limited liability protection, tax benefits, access to government grants, enhanced credibility, and flexibility in ownership and management structure. In this article, we will discuss the advantages of incorporating your small business in British Columbia and explain the process of incorporation.

Advantages to Incorporating Your Business

Limited Liability Protection

One of the most significant benefits of incorporating your small business in British Columbia is limited liability protection. This means that the shareholders’ personal assets are protected from the company’s debts and liabilities. In other words, if your business is sued or goes bankrupt, your personal assets such as your home or car will not be at risk.

Tax Benefits

Incorporating your small business in British Columbia can also provide tax benefits. Corporations can more easily deduct expenses such as salaries, bonuses, and benefits for employees. This can help reduce the overall tax burden on your business.

Access to Government Grants

Incorporating your small business in British Columbia can also provide access to government grants. The government offers various grants and funding programs to help small businesses grow and succeed. These grants can help cover expenses such as research and development, marketing, and hiring new employees.

Enhanced Credibility

Incorporating your small business in British Columbia can also enhance your credibility. A corporation is a separate legal entity from its shareholders. This means that incorporating your business can give it a more professional image and make it easier to attract investors and customers.

Flexibility in Ownership and Management Structure

Incorporating your small business in British Columbia can also provide flexibility in ownership and management structure. For example, corporations can issue different classes of shares with different voting rights. This can help you raise capital while retaining control over the company.

Continuity Planning for Your Business and Family

Drafting articles of association and incorporating your business can help provide a clear structure and plan when it is time to pass the torch in the family company. Ownership of the business and its assets can pass seamlessly when you decide the time is right, or upon your death. In this way, incorporating your business can simplify your estate planning if you wish to pass the business on to future generations. For more on how companies and company shares are passed down in estate law, read our article here.

Incorporation Process in British Columbia

The process of incorporating a small business in British Columbia is relatively straightforward. First, you need to choose a name for your corporation that is not already taken. You will then need to file articles of incorporation with the British Columbia Corporate Registry. The articles of incorporation should include information such as the name of the corporation, its purpose, the number of shares authorized, and the names of the company’s directors.

Once you have filed the articles of incorporation, you will need to obtain a business number from the Canada Revenue Agency (CRA). You will also need to register for any necessary provincial or municipal taxes.

Next Steps

The process of incorporation is relatively straightforward but requires careful consideration and planning. If you are interested in incorporating your small business in British Columbia or have any questions about the process, contact an experienced corporate lawyer today.

Have a question about this topic or a different legal topic? Contact us for a free consultation. Reach us via phone at 250-888-0002, or via email at info@leaguelaw.com