Month: June 2019

The business that may have started as a germ of an idea has grown by leaps and bounds, and you’re ready to incorporate in Ontario. There are two main paths to incorporation that you can take. One is to go it yourself, maybe with help from a do-it-yourself online service. The other path is to enlist a lawyer to help. All things considered, the second path is better. Here’s a look at why.

The Time and Energy Savings Can Be Tremendous

As far as legal matters go, the process to incorporate in Ontario yourself does not have to be crazily complex. However, it’s still a legal procedure that requires you to read about how to incorporate and to understand the NUANS name search process, the articles of incorporation, as well as the back end paperwork (which also deals with directors, officers, shares and shareholders).

That’s a lot to consider. And that’s only the tip of the iceberg. If you try to incorporate yourself, you run the risk of getting some things wrong or of doing things inefficiently. Plus, you spend your time and energy away from what you do best, which is building your business.

The Cost is Comparable

Good news! The cost to incorporate via a lawyer can be the same as what it would cost to incorporate the business yourself. In fact, when you factor in time, efficiency and saving your sanity, you could argue that it’s more cost-effective to go through a lawyer.

The lawyer who helps you incorporate in Ontario should be able to handle the complete incorporation process for you (including the government paperwork as well as all of the back end organizational documents) and much more. Look for a firm that offers a flat-rate price upfront, so you know from the beginning what the cost is. Again, despite what you may have heard, it is totally possible to find a lawyer to work with at no additional cost versus doing it yourself.

You Get Peace of Mind

Some do-it-yourself endeavors go great, but let’s face it, some don’t. When it comes to your business, why risk doing something wrong or costly? Plus, you probably have lots of questions as you prepare to incorporate. A lawyer can help answer them.

Communication Is a Breeze

Are you thinking that you’ll have to set time out of your busy day to get into your car, drive to your lawyer’s office and play match game puzzles on your smartphone while you wait an interminable amount of time for a meeting on incorporation?

Hey, this isn’t a visit to the doctor or dentist. Unlike root canals, information about incorporation can easily be conveyed over the phone or via email. You don’t need to step foot in a lawyer’s office even one time, although you can if that’s your preference. If you do choose this route, the process should still be streamlined. In and out!

You’ll likely chat with your lawyer in a phone call or email to talk about the requirements of incorporation and to discuss questions or concerns. The lawyer takes the information you’ve shared to best organize your company to address the needs you identified.

Your Priorities for the Business Align with the Most Professional and Efficient Approach

The reality is that many business owners are whizzes in what the business does, but, understandably, they don’t know the intricacies of business law. Few people do!

Would you rather spend hours researching what a board of directors is, how to create share classes or issue shares? Or would you rather chat with a lawyer who can distill the information into succinct bullet points and take care of preparing incorporation documents?

For the same price as a do-it-yourself service, you can incorporate in Ontario with the assistance of an experienced lawyer, plus get professional advice, an efficient process and a much clearer picture of what your business needs to do as an incorporated entity.

Ordower Law

If you have any questions about incorporation in Ontario, or just want to touch base with a professional for more information, contact our team today, we are always happy to assist.

Accounting can seem like a black-and-white profession. Numbers are numbers. Ten accountants should be able to assess the same financial records and come up with duplicate figures for cash flow, net income, profit and loss, sales and so on. Ditto for dealing with tax returns. Not so fast. There are “right accountants” and “wrong accountants” for your business. Here are some ideas for finding the “right” accountant for your business.

1. Clarify What You Want the Accountant to Do

Many business owners think that the purpose of an accountant is to help with taxes, balance sheets and the like—nothing more. Of course, that’s all that happens in some cases, especially for new businesses or businesses that don’t plan to grow.

However, an accountant can do so much more. For instance, having a third party do your business accounting is a way to gain perspective on your operations. The accountant can identify patterns, areas where costs can be trimmed and much more, and compile them in a report. In such a case, you probably want to interview only accountants who have experience in your industry. You may also want to consider only accountants who have the CPA designation.

This article explains the ways in which businesses can benefit from their accountants. Choose what works for your business.

2. Seek Referrals from Colleagues and Other Professionals

Explain to a few trusted colleagues or other professionals you work with that you’re looking for an accountant. You hope this person will have a, b and c credentials or be able to do x, y or z.

Your business lawyers are a good group to turn to for this type of referral. Business lawyers often work with accountants. They know who might fit well with your business.

3. Conduct Interviews

Now it’s time for interviews! Set up a small number to start with, perhaps no more than two to three candidates so you can keep the process efficient.

Discuss points such as:

• What you’re looking for in an accountant
• How the accountant tends to work with clients?
• How often the two of you will talk. What is their availability?
• If the accountant or someone else will be your main contact person
• The accountant’s fee structure
• Do they provide bookkeeping services as well as year end income tax returns?

You’ll also want to understand:

• Some of the important tax benefits of carrying on your business through a corporation (like the small business deduction or the lifetime capital gains exemption)
• How you will pay yourself from the company? Dividend or salary or some combination?
• Whether you need an HST account and/or Payroll account?

It’s also helpful to explain your business situation in general terms. Accountants will often give you some ideas during the interview on how to save money or streamline your operations. Their ideas lend insight into your business and which accountants will work best for you.

4. Pick Someone

Consider factors such as how approachable and how reachable the person is when choosing among candidates who otherwise seem equal.

5. Revisit Your Needs Periodically

Your business accounting needs may change. Your operations could outgrow your accountant, or you realize that you’d like someone different. It’s OK to change accountants as needed.

Business accounting isn’t just about a number-cruncher. It’s about finding the right mix of skills to meet the unique needs of your business. We at Ordower Law can help with the search.