Every newly established business has this question in mind. What to do next after incorporating a business in Canada? We have tried to address your concern in 3 simple steps below:
- Opening of Business Bank Account
- Depositing Funds
- Get GST/HST Numbers
1. Opening of Business Bank Account
After incorporating your business, the first and foremost task would be to open a
business bank account. Why has there been a need to have a business account? As we had mentioned in the earlier
blog, once after you did incorporation, you created a new legal entity. Now you need a separate business bank account for that entity under a new business name.
PRO TIP: If you do not separate your personal funds from the business funds, you might lack all the benefits of incorporation.
2. Depositing Funds
Once you are done with your business bank account, each shareholder then needs to pay for the shares by depositing funds into a business bank account. For a new business after incorporation, the shareholder usually pays a nominal amount listed in the minute book documents.
3. Get Your GST/HST Number
The last part of housekeeping is to determine whether or not you will
register for GST or HST number. If you expect to make more than $30,000 annually, you are required to register for GST and HST numbers and charge respectively to your customers.
Check out our blog to further learn more about
GST & HST sales tax in Canada.
It is better to register early for GST or HST numbers rather than to reach the $30,000 threshold to receive accumulated tax credits for business expenses. It will also help you to get a tax refund at the end of the year.
Ongoing Corporate Maintenance
Every business that has incorporated must learn about ongoing corporate maintenance. After the incorporation, you must maintain documents and records for the legal and tax benefits and keep the corporation up-to-date and compliant with the law.
1. Maintain a Minute Book
To start with ongoing corporate maintenance is easy as you only need to keep the company documents organized in the first place. It can be done in an old-fashioned paper binder or like we do at BG Accounting and Business Solutions through a secure online minute book.
PRO TIP: You can check your
online minute book anytime with your mobile phone remotely.
2. Update Company Details
Once you have organized the company documents, you need to update your business details, such as adding a new director or changing a company address. You should file forms with the government and corporate to prepare resolutions that officially approve the company changes. if you fall short of filing your annual returns, the government can dissolve your company legally.
All these changes need to be made quickly in the business. Luckily BG Accounting and Business Solutions can take care of all the corporate paperwork through the automated platform after incorporation.
3. Filing Resolutions and Fees
At last, your company needs to file an annual return and associated fees with the government. To stay compliant with the law, you also need to prepare mandatory documents such as annual shareholder resolution and director resolution. Remember, if you fall short of filing your annual returns, the government can dissolve your company legally.
That’s where
BG Accounting and Business Solutions come to the rescue of the businesses in Ontario. You can start with a free consultation from one of our experts to manage annual returns, tax filings, bookkeeping, what to do after incorporation, and more.
The tax season is here, let us save you big money by paying less in taxes.
