creative briefing

This post is written by guest-blogger Kevin Huynh. Kevin is the Finance Director of a Toronto-based creative marketing firm and knows a thing or two about the formalities of setting up a creative practice.

So far, we’ve discussed the basics of incorporation, and the reasons why my agency decided to incorporate. You might have even made up your mind on whether incorporation is the right step for you. But now what? The last post in this series is focused on the next steps and what to do once you’ve made that important decision. What to do, where to look, and most importantly (for some), how much it’s going to cost you.

So you’ve decided to incorporate…

Great! Assuming you’ve done your due diligence and we can now talk about the process and costs.

If you are unfamiliar with how to incorporate, don’t worry, the process is relatively easy. It’s the upkeep to maintain good standing (as mentioned in part 1) that is the hardest part. In the mean time, let’s focus on how to get started.

Firstly, if you are uncomfortable with doing it yourself, there are services available. We haven’t made use of any external services thus far, but I encourage you to do a quick search for “Canadian incorporation” to find people and resources that will help you through the process. Be warned though that it can become rather costly, and in most cases for small businesses, unnecessary.

The process

If you want to brave it yourself, it will run you approximately $220 (CAD) to complete the process. Once ready, the best place to start is on the Corporations Canada website. The process is fairly simple and approval is generally fast. However, it may help if you had someone with a business background to help you complete the process, as there may be a few terms unfamiliar to you if you don’t have a business background yourself. Anybody who’s ever taken an introductory college or university level business course ought to be fine.

However, before you incorporate, you’ll need to seek approval for your name via a NUANS® report to ensure the name is not already in use or will not cause confusion with existing businesses. Guidance on this can be found here: Choosing a Name.

Once that is complete, you’ll need to fill out the following forms:

• Form 1: Articles of Incorporation
• Form 2: Initial Registered Office Address and First Board of Directors

Sound daunting? Never fear! Corporations Canada will take you through the process step by step through their Online Filing Centre.

Send ‘er in!

The process doesn’t take long to complete. And you should hear back from Corporations Canada within reasonable time. You’ll also receive a series of documents, but most importantly, you’ll receive a Certificate of Incorporation. This is basically your company’s birth certificate. Once you have this, your business is officially incorporated! Break out the champagne!

Take a step back

Remember that these posts have simply been an overview of the incorporation process to get your mind wrapped around the general concept of how it works and what’s involved. As with any other major decision you make for your business, you’ll have to do a bit of your own research as well and weigh out the short-term/long-term costs and benefits.

Remember also that the process of incorporation should not take away your efforts from the core operations of your business. At the end of the day, the quality of your services and your relationships with your clients is what ultimately makes your business successful. Incorporation should be a tool that helps you foster this success, not hinder it.

All in all, you are in the best position to make the decision because you’re in tune with the goals and strategies for your company. If you’re a young, one or two-man operation, maybe incorporation is not your best move. On the other hand, if you’re running a steady practice and foresee growth and long-term establishment, maybe it’s time to formalize things a bit more. Do the work, do the research, make the call.

If and when you do decide that incorporation is in-line with your vision, then the next most difficult decision will probably be whether your company name sounds and looks better with an Inc., Corp. or Ltd. beside it. From there, you are free to bask in the joys of corporationhood.

Missed the previous articles on incorporation?

• Read Part 1 here
• Read Part 2 here