Thinking of Incorporating a Company in Calgary?
Here’s a list of reasons it’s a good idea to create a corporation:
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.