If you have decided that incorporating your business is the right move for you, congratulations! This will limit your personal liability for business obligations and makes your business attractive to outside investors. When it feels like it is time to grow your company, business incorporation is the right step forward. Business incorporation may seem overwhelming with the various terms and rules that need to be followed, as well as the decisions you will need to make about your business. To make it easier, here are three things to consider before incorporating.
1. Business Name: The simplest route is to go with a number name for your corporation, which will be assigned by the government. This is known as a numbered company name. If you prefer something more unique, you will need to have a distinctive business name that is not already being used. There are also certain words which are prohibited by the Canadian government for use in company names. Perform a business-name search and consider checking the website URL and social media accounts to see if your business name is available.
2. Make an Agreement with Your Co-Founder(s): If others will be involved as owners in the business, it is important to establish guidelines as to how the business will operate. Make sure you document how each co-founder will invest or what individual responsibilities are, along with who is liable for what. This will protect you and your business in the long run.
3. Have a Budget: Make sure you have money set aside to cover the costs of business incorporation. Whether you choose to incorporate online yourself or use a business service, you will always need to account for government fees, the cost for a business name search, and registration.
Having your basic business information ready to go will save you time as you get started on incorporating your business.
