How to Set Up an LLC in Canada
In Canada, there are three different modifications when forming a limited liability company (LLC). All three modifications feature the same requirements and regulations.
The main difference between the three occurs in the naming of the LLC. A named company is an LLC that is started with a name the business owners specify. A numbered company is a LLC that has an assigned number given by the provincial government in which the business is located. Lawyers, doctors, and other professional industries can choose a professional corporation as their business entity.
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Things You'll Need
- CAD$200 Online incorporation service fee
- Other service and government fees
Instructions
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Determine which LLC modification is best for your business. Create an outline of what focus you want your business to have.
Ask yourself if you want your business recognized by a number or name. If you are a professional, you will sign up for a limited liability corporation.
Include the nature of your business, what products/ services you will sell, and overall future of the LLC business. This helps determine which modification is best for you.
You must also decide if you will file a federal or provincial LLC. A federal LLC will allow you to conduct business throughout Canada while an LLC filed in a province is limited to only operating within that province.
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Choose and reserve a business name for your LLC and begin the process of reserving it. It will help to have two to three backup names in case the name you prefer is already taken. Check the resource section to reserve your name. A CAD$20 service fee will be assessed upon completion of the reservation process.
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Put together your incorporation documents. Use the outline you write as the basis for for writing your articles of incorporation. You must also file a notice providing key information about where your registered and records office are located.
Do not forget to include a written copy of the LLC bylaws dictating the rules and regulations of the LLC.
Submit your business documents to the appropriate agency.
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References
Resources
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