Surrey BC Incorporation Lawyer
According to BC Stats, in 2015 there were over 36,000 businesses incorporated in BC.
Are you planning to start a new business?
At Patrola Law, our dedicated and experienced legal team is committed to helping business owners and entrepreneurs establish and develop their business. We offer you a complete range of business legal services, ranging from incorporation and registration to complex reorganization.
Incorporation is the forming of a new corporation being a legal entity that is effectively recognized as a person under the law.
The corporation may be a business, a non-profit organization or a government of a new city or town.
Benefits of Incorporation
Incorporating a business can have significant benefits:
- The protection of personal assets from the claims of creditors or lawsuits
- Enable owners of business to transfer their ownership in a company more easily to others
- Lower corporate tax rates because corporations are taxed separately from their owners.
The incorporation application will include the following information:
- Corporate name
- Completing party
- Share structure
- Registered and record office
- Information of directors.
Other important elements of incorporation
A corporate name must be added to the Certificate of Incorporation.
It can be a distinctive name chosen by owners of business or a numbered name automatically generated by the Registry upon filing the incorporation application online.
The parties involved in the incorporation process are the incorporator, shareholder, and directors.
- Incorporator – The person or the organization that prepares and files the incorporation application
- Shareholders – They are owners of the company
- Directors – They operate and manage the company.
They, in many cases, may be the same people.
Directors are responsible for overseeing the activities of corporation and conducting the business in a manner that will protect and enhance the shareholders’ investment.
Corporations are required to file annual report to the government to maintain good standing.
A partnership refers to a voluntary association of two or more people who jointly own and carry on a business for profit.
A typical example would be lawyers working in a law firm who jointly provide legal services.
The partners in a partnership can be individuals, businesses, interest-based organizations or governments.
Partners would share in the profits of the business according to the terms of the partnership agreement.
A partnership is easy to start up, and allows business owners to share start-up costs and profits equally.
However, the disadvantages of partnership would be unlimited liability and possible conflicts that may arise between partners.
Sole proprietorship means that there will be only one owner of the business.
Sole proprietorship requires relatively low cost to start a business compared to other types of business organization.
It also enables business owners to have a full and more direct control over decision-making process.
All profits will directly go to business owners.
With this type of business organization, the sole business owner would be responsible for all debts and obligations in connection to the business, and he would have all profits alone.
For business owners, their income would be taxed at their personal rate, which means the tax may be higher if the business is profitable.
A joint venture is a business agreement in which the parties agree to develop new assets by contributing equity for a finite time.
A successful joint venture can provide some benefits:
- Business owners are able to get access to new markets and distribution networks
- They can share risks and costs with other partners.
- A joint venture offers more flexibility
Nevertheless, it should be noted that a joint venture can also carry certain risks.
For example, partners may have different objectives for the venture, or they may have different levels of expertise, assets and investment brought to the venture.
Participants may also have different management style in terms of running a business.
It is important for business owners to first weigh the pros and cons of each type of business organization before they make their decision. It is also essential for them to assess their business strategies and company structure prior to commitment of any kind of partnership.
THINKING OF INCORPORATING A BUSINESS?
Have a knowledgeable Surrey BC incorporation lawyer at Patrola Law help you get your new venture off the ground.