Incorporating your business is such a fantastic decision and it will give you a lot of freedom and comfort.
However, there are some important consideration factors when you are looking at the idea of preparing yourself for incorporation. Before you actually incorporate, you’ll want to have these details in mind for the best results.
Top things to do before incorporating your business
Before you sit down to get all of the paperwork in order, you’ll want to think about a few important details to help you prepare properly for both the process of incorporation as well as the actual incorporation paperwork itself.
● Make sure you know what the lingo means: There are some terms and definitions that you’re going to have to understand when it comes to the idea of making sure that you can follow the discussions and sign the paperwork formally. For example, the incorporator is different from the director. You’ll also need to know what corporate bylaws are and what shareholders are. These are all easy to brush up on, though!
● Choose a name: Next, you’ll want to make sure that you have the name that you’re interested in formally registering to incorporate. This is important to get right, so don’t just think of something random and make it work. You’ll need to make sure that you have in mind the name that you will use for the future of your business.
● Understand your rights and your responsibilities: There are fantastic rights that are going to be waiting for you when you decide to incorporate, but there are also going to be responsibilities that go along with it. You’ll want to make sure that you remember to learn what both the rights and responsibilities are so that you can properly put together the right kind of package that will help you to make the right decision.
● Names of all who need to be put into the incorporation: Incorporations have people formally named within the documentation, so you’ll need to have the legal names of those people. They are your incorporators and directors at the very least. Their legal names must be used in order to ensure that everything matches should the need arise to take a look at it.
● Provincial or federal incorporation?: Last but not least, one of the important details to focus on is going to be whether you want to incorporate provincially or federally. The process for either is different, of course, and you’ll want to make sure that you think carefully about which approach you want to take for both the present but also future of your business.
While this isn’t a complete list, of course, it will help you to make sure that you are ready to start out on your incorporation journey! It’s sure to be a great one and we’re hopeful that these tips will help you to properly prepare for this important step for your business’ sake. The more prepared you are, the better everything is going to be, after all.