If I Want to Incorporate My Business Should I Choose Federal or Provincial Incorporation?

Incorp4u > Blog > If I Want to Incorporate My Business Should I Choose Federal or Provincial Incorporation?

The idea of incorporating your business is such an exciting one and it is certainly a great idea for so many reasons.

However, one of the important details that you’re going to have to think about seriously is whether you want to incorporate provincially, or whether you want to do it federally. What is the best choice? How can you choose what is going to be best when it comes to the idea of the two compared to each other? It all starts with access to the right information, of course.

Top considerations for federal incorporation
This is a “one and done” approach. When you are looking at the idea of working from, and with, multiple customers from other provinces, you’ll love the idea of federal incorporation. It offers you a lot more right when it comes to doing just that and it also helps protect you.
For instance, if you have a company called Ablecats and it is based in New Brunswick, you’ll find that working with Quebec with that name may not give you any protection. For example, if someone in Quebec had that same name, they could sue you for using it because you are incorporated only in New Brunswick.
If you were federally incorporated, you would be the company that would be allowed to use Ablecats in Quebec, Manitoba, etc without worry, since you’re recognized throughout Canada.

Top considerations for provincial incorporation
As you might be able to guess, incorporating provincially means that you are formally registering yourself within that province. If you live in British Columbia, for instance, and you work only in British Columbia, there is no problem. Setting yourself up as an incorporated company right within the prince is going to be a great solution when you just need to focus on that one province.
But what about when you get customers from other provinces? Or you wish to take a look at operating out of another province? You guessed it: you will need to incorporate in that province or territory as well. Even if it’s just a few sales, you’ll need to set up and register in another province in order to work as an incorporated company.

Making the decision
At the end of the day, it’s all about making the best choice for your company. If you know that you are only going to work from within British Columbia, then you don’t need to worry about incorporating in Quebec or New Brunswick. If you do think that you’ll want, and need, to incorporate federally, then it’s best to just start with that right from the get-go.
It’s best to talk it over with someone who can give you more personalized advice, of course, so don’t be afraid to reach out about the idea of registering a business and whether you should incorporate federally or provincially.

Whatever you choose, incorporating online isn’t going to be nearly as hard as you’re thinking if you rely on the right help! The rest is entirely up to you and your business decision.

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