Why Should You Incorporate a Company?

Thinking of Incorporating a Company in Calgary?

Here’s a list of reasons it’s a good idea to create a coIncorporate a company with Calgary Registries Plusrporation:

The first thing to understand about incorporating a company in Calgary is that you are creating a new legal body in the eyes of the law. In fact, the incorporated company, or corporation, is considered almost like an actual person; it has a name, a birth date, a legal identity and it has legal rights. The word corporation comes from the Latin word corpus, which means body, so the best way to think of it is as a legal body.

Why would you want to create a new legal body, just to start a company? That’s a very important question because it could be that creating an incorporated company is not for you. Here are the most common reasons people incorporate a company in Calgary:

  • Owners are protected from personal liability from company debts and obligations
  • An incorporated company has a reliable body of legal precedent to guide owners and managers
  • An incorporated company is the best vehicle to become a publicly traded companies
  • An incorporated company can more easily raise capital through the sale of its shares
  • Ownership can easily be transferred through the sale of its shares
  • An incorporated company can live on indefinitely
  • In incorporated company can create tax benefits under certain circumstances

What are some reasons you wouldn’t want to incorporate a company and instead operate as a sole proprietor? Here are the most common disadvantages to incorporate a company in Calgary:

  • An incorporated company requires annual meetings and require owners and directors to observe certain formalities. In short, there’s more work involved
  • An incorporated company has costs to start up, although not as expensive as you might think. There are easy ways to incorporate a company without requiring a lawyer. Come to Calgary Registries Plus and Incorporation Specialist can help show you an easy and low-cast way to get started.
  • An incorporated company is required to prepare an annual filing and separate tax return

If you decided to incorporate your company, visit Calgary Registries Plus and we can walk you through the process. We’ll registry your trade name, file your article of incorporation and provide you with a minute book to keep everything well organized.

 

Registering your business name in Calgary

One of the first register a business name in Calgarydecisions you will need to make as a new business owner is what to call your business. Registries Plus in NE Calgary has been helping Albertans set up companies and select business names for 15 years, so you can count on us for professional advice.

What is a NUANS Search?

NUANS computerized search system that compares a proposed corporate / business name or trade-mark with databases of existing corporate names and trademarks. This comparison determines the similarities between the proposed name and existing names in the database, and produces a listing of names that are most similar. The search report consists of 7 pages and allows you to evaluate the availability of the proposed name.

What are the Elements of an Incorporated Business Name?

Your business name should have three parts. The Distinctive element sets your business apart from all other like businesses. The Descriptive element says what kind of business it is. The Legal element identifies what time of incorporated company it is. For “Red Arrow Plumbing Ltd.”, the three elements are as follows:

  • Distinctive:  Red Arrow
  • Descriptive: Plumbing
  • Legal: Ltd.

For the legal element, you may choose from this list: Limited, Limitee, Ltee, Ltd., Corp., Corporation, Inc., Incorporated, Incorporee, ULC, Unlimited Liability Corporation or Professional Corporation (for certain professions only).

When is a NUANS Report Required?

You are required to do a NUANS Report if you wish to incorporate a company in Alberta. Most other provinces and Federally-incorporated companies also require a NUANS report. Remember that the NUANS Report is only valid for 90 Days, so if you don’t incorporate your business within 90 Days of completing the NUANS report, you will have to pay again to order a new one?

Do Sole Proprietors Need NUANS Reports?

NUANS Reports are not required for Trade Names, Partnerships and Sole Proprietorships. However, it is advisable to complete one so that you can prove that at the time that you established your business, your requested name was not registered. This may be useful in the future if a company who subsequently starts using your business name tries to take legal action against you. Having said that, the best way to secure your business name is to incorporate your company with your proposed business name.

Is it Possible to Change My Company’s Name?

If you incorporate a numbered company or if you want to change the name by which your named company is known, you can complete a NUANS report and amend the incorporation name. However, a government and service fee will apply – it currently costs about $160 to change your business name in our registry office. We strongly recommend that you carefully select the name you will use prior to incorporation to avoid extra corporate registry fees.

Registries Plus offers all level of Corporate services, including NUANS searches for Alberta or Canada, starting at just $45. No appointment necessary – just come in during business hours (7:30 – 6 Monday – Friday and 9:30 – 5:00 Saturday).