Incorporating in BC, Reap the Benefits

If you're a startup, entrepreneur, or small business in British Columbia, incorporating your company can provide great benefits to the long term health of your business.

This presentation covers the overall aspects of what a corporation is, the 3 primary benefits of incorporating, and the reason why you should incorporate through a lawyer.

Transcript

1. INCORPORATING IN BC: REAP THE BENEFITS
2. BC Incorporations The content of this presentation is derived from Patrola Law’s “Incorporating in BC, Reap the Benefits” video. You can follow along by watching the following video.
3. https://youtu.be/tDcWOSXEaQE
4. Are you a Have you thought about the following? • How to start your business • What is the foundation of your business going to be? • How do you put your plan into play?
5. The There are generally 3 ways to move forward and start your business: 1. A sole proprietorship 2. A partnership 3. A corporation In most cases, many of you are going to benefit from forming a corporation.
6. What is a Under Canadian law, a corporation is a legal entity and considered a person. • A corporation will run the business, incur the losses, incur the costs, and generate the revenues • You as an owner/shareholder of that corporation, will not be receiving any moneys from the business directly. Your accountant will help guide you through the best way to get the money out of the corporation and into your personal name whether as management fees, salary, or dividends.
7. Why There are many benefits to incorporating but 3 principle benefits are: 1. Protecting your personal assets 2. Ownership flexibility 3. Lower corporate taxes
8. 1 By incorporating, any risks and any liability that attaches to the business operations, stops at the corporate level. That means that liability will not spill over to you as a shareholder. There is a corporate veil and it is very difficult to pierce that corporate veil and come after you personally. So you can protect your personal assets from creditor claims or from any other liability that may attach to the corporation itself.
9. 2 You can transfer shares amongst other shareholders, to new shareholders, and you may end up in situations where one shareholder or a group of shareholders want to sell their shares and another group does not want to sell their shares. Now you have the flexibility of selling these shares to other individuals and there’s just much more flexibility involved with a corporation than if you were doing it otherwise.
10. 3 Your company is going to incur much lower taxes than if you were taking the money to your name personally. 12% or 13% as a corporate tax as opposed to taking the monies into your own name, in which case you’re paying taxes at your personal income tax rate which might be 30% plus.
11. Who Should NOT YOU!
12. Why You Should Not Incorporating yourself without legal counsel generally leads to mistakes in your application. It takes more time, effort and cost to fix improperly prepared documents than if it was done properly the first time around. Hire a competent and experienced business lawyer who can provide you with the nuanced and specific advice you may need for your corporation.
13. Hire an Incorporation lawyers are able to assist you with multiple legal facets of your business during and after incorporation: 1. Create and maintain corporate organizational documents required by the Business Corporations Act 2. Drafting, negotiation, and advising on important contracts and agreements 3. Advise and resolve any legal issues that may arise in the future
14. Patrola Law Corporation 12827 76 Ave Surrey, BC V3W 2V3 (778) 565-4700 patrolalaw.com Presented by: