Accountant for incorporating a business in Canada

The accounting side of incorporating

An accountant does not draw up the articles or file them. A lawyer or an incorporation service does that. HBT works before and after: whether a corporation saves anything on your expected profit, how the owners should be paid, which year end suits the business and which CRA accounts to open once the corporation exists.

Federal and provincial incorporation both produce a corporation taxed under the same federal rules. The corporate tax a company pays depends on where it operates, not on where it was incorporated. The choice between the two is a legal one about name protection and extra registrations, and a lawyer should confirm it.

What an incorporation engagement covers

How the work begins

1. 1

   Step 1: Describe the business

   Owners, expected profit, other income and any plan to sell or bring in a partner.

2. 2

   Step 2: Agree the advice and the fee

   The structure consultation priced in writing, with the legal steps handed to your lawyer.

3. 3

   Step 3: Set up the accounts

   Once incorporated, accounts opened, books started and the first year end scheduled.

Should a business incorporate federally or in its own province?

Both routes create a corporation taxed under the same federal rules, and provincial tax follows where the business operates. The choice is mainly legal: name protection, where the company must register in other provinces and the rules for directors. A lawyer should confirm it. HBT advises on whether to incorporate at all and on the tax set up that follows.