Do I Need a Lawyer to Incorporate a Business in Canada?

Do I Need a Lawyer to Incorporate a Business in Canada?

We often see people being tempted by online ads and incorporation retailers promising a quick and easy incorporation for a few hundred dollars. Almost all of these people end up regretting this decision.

Why should you pay a business lawyer to incorporate when these online services charge a fraction of the cost?

In this guide, we will explain why you should hire a lawyer to incorporate a business in Canada. We will also compare what you receive from these online services versus what you would receive from our firm.

Here are some key takeaways from this article:

When considering whether you should incorporate a business in Canada, a crucial first step is to speak to an incorporation lawyer.

At DiMinno Rizzi, our incorporation lawyers will work closely with you to ensure that your company is sailing in the right direction!

Frequently Asked Questions

Incorporate a Business in Canada FAQ

Can I incorporate my business myself?

While it’s technically possible to incorporate in Canada on your own, we strongly advise against it. From our experience, DIY incorporations are frequently incomplete or riddled with mistakes, which can compromise your legal liability protection and tax benefits.

What do online incorporation services offer?

Online incorporation services typically handle only the initial step—filing the Articles of Incorporation. While seemingly cost-effective, these services often omit crucial steps like creating a Minute Book and issuing shares, leading to an incomplete incorporation.

Should I use a lawyer to incorporate?

Hiring a lawyer ensures a complete and legally sound incorporation. Lawyers manage all steps, including filing documents, creating a Minute Book, issuing shares, and providing tailored legal and business advice, protecting you from future legal and financial issues.

What is a Corporate Minute Book?

A Corporate Minute Book is a comprehensive record of a corporation’s legal and regulatory activities. It includes documents like shareholder agreements, by-laws, and meeting minutes. Maintaining it is not only good practice but also a legal requirement in Canada.

What are the risks of using online incorporation services?

Online incorporation services can leave you with an incomplete business setup. Risks include losing limited liability protection, potential company dissolution, and legal issues with ownership and property. These services often omit crucial steps like share issuance.

What does a lawyer do during the incorporation process?

A lawyer handles filing the Articles of Incorporation, creating the Corporate Minute Book, issuing shares, and drafting necessary legal documents. They provide strategic advice on corporate structure, tax minimization, and compliance with industry-specific regulations.

What kind of lawyer should I use to incorporate my business in Canada? Will any lawyer do?

You should use a business lawyer to incorporate your business in Canada. Not just any lawyer will do. A business lawyer specializes in corporate law, ensuring all legal requirements are met. They provide valuable advice on structuring, compliance, and potential legal pitfalls, safeguarding your business.

How much does it cost to hire a business lawyer for incorporation?

Costs vary, but hiring a business lawyer for incorporation typically involves higher upfront fees compared to online services. However, the comprehensive legal support and long-term protection they provide can save you significant money and trouble in the future. Learn more.

What additional benefits does a business lawyer provide when incorporating a business?

Business lawyers offer specialized advice on the best corporate structure, minimizing taxes, avoiding legal pitfalls, and meeting industry-specific requirements. They also provide business agreements, strategic advice, and connections to other professionals, ensuring comprehensive support.

Can I use an online incorporation service and then hire a lawyer to complete the process?

Yes, you can use an online incorporation service and then hire a lawyer to complete the process. However, this approach may be more costly and complicated. Hiring a business lawyer from the start ensures a seamless, legally sound incorporation, avoiding potential errors and omissions from online services.

Antonio DiMinno

About the Author

Antonio DiMinno is a business & real estate lawyer, entrepreneur, and founder of the law firm, DiMinno Rizzi Lawyers. Antonio takes pride in working differently than most law firms. He doesn’t see himself as just a lawyer, but rather a trusted business and legal advisor in your corner. His focus is helping entrepreneurs and real estate investors through practical, business-savvy, and cost-effective solutions delivered in plain English.

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