What do you need to do after you incorporate your business?

Essential Steps to Take After Incorporating Your Business

Incorporating your business is a major step. Once you officially incorporate your business, you’re setting off on a new path, with various legal obligations and reporting requirements. Knowing what’s next is key, and Ottawa and Clarence-Rockland businesses can turn to corporate lawyers for advice and assistance. 

Secure Licenses and Permits and Register your Corporation 

Once your business is incorporated, the first step is to secure the necessary licenses and permits. These vary depending on your business’s location, industry, and the services or products you offer. You are also required to register your Corporation in the province it will be operating by filing an initial return with the appropriate governmental authority. 

For a deeper understanding of business ownership in Canada and its legal requirements, this article offers valuable insights: What You Should Know About Owning a Business in Canada.

Organize your Corporation 

Following the incorporation, it is crucial to prepare and sign the by-laws of the corporation, along with the organizational resolutions. These documents will regulate the internal affairs of the corporation, elect the directors and officers, authorize the issuance of shares to the shareholders, and much more. The corporate lawyers at Simard & Associates can assist in drafting organizational documents that are tailored to your corporation’s needs and goals. 

Open Corporate Bank Accounts and Maintain Accurate Financial Records 

Opening a corporate bank account is a milestone and setting up good accounting procedures is important. With proper accounting in place, and a regular review of your financials, you’ll see the trends, stay on top of your cash flow and be able to effectively run your business. 

Adhere to Tax Regulations 

Compliance with tax regulations is crucial to running a business, yet it can be complex and daunting. Proper tax management involves more than just recording transactions; it encompasses understanding which taxes apply to your business, registering appropriately, determining tax rates, and meeting deadlines for submissions. Failing to adhere to tax regulations can lead to severe consequences. Businesses must prioritize tax compliance to maintain their financial health and legal standing. Seeking professional advice from tax experts is crucial in ensuring compliance with tax laws and regulations. 

File Annual Reports 

Both federal and Ontario corporations are required to file an annual report with the government prior to specific deadlines. These reports update the government on the corporation’s registered office, and the directors and officers of the corporation. If you fail to file your annual report, governmental authorities have the power to dissolve your corporation. The corporate lawyers at Simard & Associates can help your corporation prepare and file its annual reports accurately and on time. 

Annual Meeting of the Shareholders and Board of Directors 

The Board of Directors and the shareholders must meet annually after the fiscal year end of the corporation. This meeting will allow the directors and shareholders to review and adopt the financial statements of the corporation and adopt all acts taken by the officers and directors during the fiscal year. These annual meetings must be reflected in your corporation’s minute book by way of annual resolutions of the shareholders and the board of directors. The corporate lawyers at Simard & Associates can assist in drafting these annual resolutions to ensure your corporate minute book remains up to date. 

Filing a Notice of Change and Amending your Articles 

When a change takes place in your corporation, such as a change in the corporation’s registered office, a change of directors or officers or a change in the share capital structure, the appropriate governmental authority must be informed. This is completed by filing a notice of change or amending your corporation’s articles. The corporate lawyers at Simard & Associates can assist in determining which document must be filed, and they can draft the required documentation to keep your minute book and your records with the governmental authorities up to date. Failing to report a change in your corporation in a timely manner can result in monetary penalties or the dissolution of your corporation. 

Starting a new business in Canada is exciting. After you go through all the steps to incorporate, taking the right steps towards securing licenses, organizing your corporation, and complying with annual legal requirements is essential. These actions not only ensure your business’s legal standing but also contribute to its smooth operation and growth. For businesses in Ottawa and Clarence-Rockland seeking expert legal guidance, Simard & Associates stands ready to provide comprehensive support in business and corporate law. Contact us for more information or to schedule a consultation. 

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