What is a Corporation?
A
Corporation is a distinct legal entity that
is owned by but separate from its shareholders and is managed by a board
of directors. A Corporation is designed to generate value for those who
have a monetary interest in it and to provide separation between its
owner’s assets and the corporation’s assets. A corporation is formed by
simply: identifying a location of business, individual's who will
direct the affairs the corporation (directors), how the company will
be structured with regards to shares it can issue, how many directors it
can have and any rules the company will be governed by. Corporations
can live for indefinite lengths of time, pay taxes and own other
corporations.
Why Incorporate?
There are several
benefits. The major advantage is to
limit your liability exposure. With
a sole proprietorship, the liability for the actions and financial
obligations of the company rest with the registrant (meaning you).
Therefore, as
a proprietorship your personal assets are at risk. In a corporation the
shareholders are not held liable in most cases for the actions or financial
obligations of the corporation. So if there is a possible liability
risk to your business, incorporating is the best way to protect your
personal assets.
Corporations also have
perpetual life. A Corporation is considered to be a separate
entity "person" and is not effected by the changes that take place in
the directors and shareholders. This allows for the ownership to
be transferred. Also, due to it's independent legal status it is
allowed to own property or enter in to legal agreements.
Corporations also have a
distinct tax advantage. Corporations will be taxed at a lower rate then
you personally. This is done to give individuals an incentive to start
their own business and to create jobs and therefore
strengthen the economy. Losses can also be carried
forward to offset upcoming years of profit.
Incorporating your business adds
substance and power to your product or service. It communicates
strength, firmness and professionalism and provides security by
isolating your personal assets form those of the companies.
At legal Express, your
corporation will be formed fast and accurate.
Is My Corporate Name
Available?
Included
in the cost, we will check to see if the name you have chosen is
available. NUANS (Newly Upgraded Automated Name Search) is a
computerized search system that
compares a proposed corporate name to a database of existing corporate
names. This comparison determines the similarity that exists
between the proposed name and existing names and
produces a list of names that are found to be most similar.
In most cases, the NUANS
report will reserve the proposed name for a period of 90 days for the
person who has requested the report.
If the name is not available, the charge
for the NUANS report will be applied and an alternate name can
be chosen.
The Rules
Regarding Naming a Corporation!
The name could be as simple as a randomly selected numbered corporation,
ie. 23456 Alberta Ltd. A numbed corporation is less expensive
because it avoids the cost of a name search (NUANS) report.
However, a numbered company does not describe the business in any way
and may lessen the prestige and credibility associated with your
business.
In a Named
Corporation the chosen name needs to be specific and distinct to your
business. You will not be allowed to use a name that is in use or
may be confused with other existing corporate names. It is
recommended that the name be original and distinct, and accurately
describe your business. The corporate name must also include
a legal element. Some examples are;
-
Incorporated,
- Inc.,
- Corporation,
- Corp.,
- Limited,
- Ltd.
Who Will Actually Do The
Incorporation?
After
you have completed and submitted the documents, they will be completed and finalized by LegalExpress.ca.
The actual name searches and Filing will be done by an Authorized Agent in
the Province of Alberta. The forms will be filed with the Provincial Government,
Corporate Registry Department.
What is the Corporate
Access Number?
Your Corporate Access Number will be given at the time of the
Incorporation. If you plan on opening a bank account under your
corporate name, banks will require to see your Corporate Access Number
and a copy of your Certificate of Incorporation and articles.
How
Do I Get Started?
Getting Started ... is as easy as
to Member Services.
Select the
Incorporation Package you
require.
Complete the easy online form.
Make the appropriate payment.
... and
we do the rest!
