Business

              

      CORPORATE LAW

      The prudent way to operate a small business in Ontario is through a

      company set up under the Ontario Business Corporations Act.   By doing so,

      the company (also called a Corporation) is given its own legal existence

      and the people who own the company's shares are legally separate and

      distinct from the company itself.

 

      Briefly, steps to incorporate a company include: obtaining approval for a

      company name, filing Articles of Incorporation with the Ministry of

      Consumer and Business Services, electing directors, passing bylaws,

      appointing officers,  issuing and distributing shares, appointing a banker

      and an accountant, organizing the company records and filing the

      appropriate Notice with the Ministry.

 

      Once the company has been incorporated and organized, contracts can be

      signed and business can be conducted in the name of the company which

      becomes  wholly responsible for carrying out its contractual obligations,

      not the company's shareholders, directors or officers, even if they happen

      to be the same persons.

 

      There are business and tax advantages for conducting business through a

      corporation. In fact, the only disadvantages are the costs of setting up

      the company and the small annual fee to maintain the corporate records.

 

      If you are thinking about incorporating an existing business or

      incorporating a new business venture, you are well advised to retain a

      lawyer.