Where should I incorporate my business?
If you
have decided on a corporation, you need to choose between a provincial or
federal corporation. There are advantages and disadvantages
to both and there is no one best solution. Deciding which jurisdiction to
choose may depend on the answers provided to these questions:
- Do you plan on doing business in more than one province?
- What percentage of the corporation's directors will be residents of
Canada, if any?
- Do I want to have 2 annual corporate reports (one for federal and one
for provincial)?
- Do I want to save money now for incorporation, even though it may cost
me more in the long run?
- Will I have any directors that are no residents?
The
short answer is that most often its simpler and less expensive to incorporate a
provincial corporation in the province your business will be operating in.
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