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It is recommended to mandate a professional (lawyer or notary) to incorporate a corporation. In fact, in addition to filing articles of incorporation with a suitable corporate structure that complies with the legislation, the professional organizes the company to issue shares, adopt by-laws, and elect the directors and officers of the company. However, it is possible for the public to proceed by themselves to the filing of

Many start-up entrepreneurs wonder whether they should be "registered" or "incorporated". The differences between these two ways of operating a business are significant. Registered business A so-called "registered" business is in fact a sole proprietorship (self-employed), which registers with the Registraire des entreprises. Registration is not required if the sole proprietorship operates under the name of its owner. If the business operates under another name, it must be registered

A newly created corporation must register for various accounts with the Canada Revenue Agency and Revenu Québec. The first account, which is mandatory for all corporations doing business in Canada, is the income tax account (file in Quebec). This account facilitates the filing of tax returns and should be opened immediately following incorporation. If the corporation is federally incorporated, a federal business number

The formalities provided for by law must be respected when shares are issued, whether for an initial issue following the incorporation of the company or any other subsequent issue. These formalities are the same under both Quebec and federal law. It should be noted first that a share issue is a contract between the share subscriber and the corporation. The subscriber, by way of a subscription letter

The authorised share capital of a corporation may provide for several classes of shares. In this case, the articles of the corporation will provide, for each class of shares, rights and restrictions associated with the shares of these classes. The first class, often referred to as Class "A" of the share capital, is the class of shares known as "ordinary shares". Upon incorporation of a corporation and the issuance of the first

The LLC (Limited Liability Company) is a specific legal vehicle in the United States. The first state in the United States to enact legislation allowing the creation of an LLC was Wyoming in 1977. Since it is not incorporated, the LLC is to some extent similar to a sole proprietorship and a partnership. In addition, from a tax perspective, it is the owners of the LLC who are taxed at the personal level. However, as the corporation

When it comes to transferring shares, whether by sale, donation or otherwise, it is important to respect the rules set out in the law in order to have a valid transfer. For corporations incorporated under Quebec law, the rules surrounding transfers are set out in the Securities Transfer Act, while for federal corporations, the rules are set out directly in the Canada Business Corporations Act

The fact of holding the office ofdirector within a corporation implies its share of responsibility. In fact, both corporate and tax laws provide for various cases where directors incur personal liability for the company's obligations. For example, both the Business Corporations Act and the Canada Business Corporations Act provide that the directors of the corporation are jointly and severally liable to the employees

Transfers of shares, by sale, gift or otherwise, often occur between persons with family ties, particularly within family businesses. In such transactions, it is important to comply with the provisions of the tax laws (both federal and provincial) in order to avoid undesirable tax consequences. The Income Tax Act provides that a person who disposes of property to a person with whom