Incorporation Basics — Ontario vs. Federal
Incorporating your business provides liability protection, tax advantages, and credibility. But should you incorporate provincially or federally? Here's what you need to know.
Ontario vs. Federal Incorporation
| Feature | Ontario (Provincial) | Federal (CBCA) |
|---|---|---|
| Government fee | ~$300 | ~$200 |
| Name protection | Ontario only | Nationwide |
| NUANS report | Required | Required |
| Extra-provincial registration | Not needed in ON | Must register in each province you operate |
| Annual filings | Ontario Annual Return | Federal Annual Return + provincial registrations |
| Best for | Businesses operating only in Ontario | Businesses operating in multiple provinces |
Steps to Incorporate in Ontario
- Choose a business name — Or operate as a numbered company (e.g., 12345678 Ontario Inc.).
- NUANS name search — A search of existing business names to avoid conflicts ($13.80).
- Prepare Articles of Incorporation — Defines your share structure, directors, and restrictions.
- File with ServiceOntario — Online or by mail. ~$300 government fee.
- Prepare corporate minute book — Organizational resolutions, by-laws, share certificates.
- Register for CRA accounts — HST, payroll, and corporate tax accounts as needed.
Benefits of Incorporation
- Limited liability — Your personal assets are generally protected from business debts.
- Tax advantages — Small business tax rate of ~12.2% (combined) on the first $500K of active business income.
- Credibility — “Inc.” or “Corp.” signals professionalism to clients and partners.
- Perpetual existence — The business continues even if ownership changes.
Do You Need a Professional?
While you can incorporate yourself online, a paralegal ensures your articles, by-laws, and minute book are properly set up — avoiding costly mistakes down the road. We offer fixed-fee incorporation packages.
Ready to incorporate your business?
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