Congratulations—you’ve incorporated your business! Now, there are certain things that must be done to keep your company up-to-date and compliant. Through Ownr, we take care of many of them automatically!
Immediately after incorporating, you have three things to consider:
1. Open a business bank account
First, you’ll want to setup your business bank account. Once you’ve incorporated your business, you’ve created a new ‘person’ at law. This means that it needs its own bank account in its own name. You will not get the benefits of incorporating if you do not separate your personal funds from your business funds.
2. Pay for your shares
Once the bank account is setup, each shareholder needs to pay for their shares by depositing money into the business bank account. For a new corporation, the shareholders usually pay a nominal amount listed in the Minute Book documents.
3. Consider registering for your GST/HST Number
The last bit of housekeeping to get your company on the right path is to determine whether you will register for a GST/HST number. If you anticipate earning more than $30,000 in annual gross revenue, you are required to register for a GST/HST Number and charge sales tax to your customers.
While it is not legally required, it often makes sense to register for a GST/HST Number early, rather than waiting to hit the $30,000 threshold. This way, you will be accumulating tax credits for any business expenses you incur, and you may be entitled to a tax refund.
Ongoing corporate maintenance
After incorporating, your business has an obligation to maintain certain documents and records. In exchange for the legal and tax benefits of incorporating, you are expected to keep your corporation up-to-date and in compliance with the law. The following are three items that every company is legally required to keep up-to-date:
1. Minute book and share records
You are required to keep your company documents in an organized manner. This can be in an old-fashioned paper binder, or, like we do with Ownr, through a secure electronic minute book.
2. Company updates
Anytime your company details change (like when you want to add a new director or change your address), you have an obligation to file forms with the government and prepare corporate resolutions which officially approve the company changes.
Ownr takes care of all corporate paperwork through our automation technology. Ownr prepares and files forms with the government, prepares the required corporate resolutions, gathers eSignatures, and securely stores all documents back into your account.
3. Annual return and resolutions
Each year, your company will need to file an annual return with the government and pay the associated fees.
You’ll also need to prepare annual shareholder and director resolutions. These are all mandatory documents in order for your business to stay compliant. If you fail to file the annual return, the government can dissolve your company.
No need to worry, though, as we automatically take care of these documents at Ownr!
Ready to start your business? Ownr has helped over 40,000+ entrepreneurs hit the ground running quickly—and affordably. If you have questions about how to register or incorporate your business, email us at [email protected]