Guidelines

GENERAL GUIDELINES FOR A NEWLY INCORPORATED COMPANY

Make sure to have all of this information to have a smooth incorporation.

1. I have informed my placement agency that I have incorporated

This is very important as it affects how your agency will structure your pay.

Your agency must be informed on a timely basis of any changes in your status. Be sure to give your agency a copy of your articles of incorporation, and corporate GST/HST number. If you are paid directly to your bank account, be sure to include a voided cheque from your corporate bank account. It is imperative you do not delay this action so you are paid correctly! If your agency is unaware that you have incorporated, they will continue to deduct EI & CPP from your cheques, and will give you a T4 marked as “Placement Agency – Self-Employed” at the end of the year.

2. I have opened up a bank account for my corporation

You will need to take your Articles of Incorporation to open up your corporate bank account. It is important that the account be a chequing account, and that you receive a month-end statement along with your returned cheques.

3. The “Form 1 Initial Return / Notice of Change by an Ontario Corporation

Ontario Corporations must complete and submit an Initial Return to the Ministry of Government Services within 60 days after the date of incorporation, amalgamation, or continuation. After filing an Initial Return, corporations must complete and submit a Notice of Change to the MGS within 15 days after any change takes place (e.g. when a corporation changes its address, directors, or officers). If you have processed a “Standard Incorporation” or an “Independent Contractor” Package with our firm, this Form 1 / Initial Return has already been processed on your behalf. If you selected the “Bare Minimum Incorporation” Package you will be required to complete the Form and mail it to the Ministry of Government Services. Please click here to access the Form 1 / Initial Return.

4. Business Number and GST/HST

Business Number: CRA will automatically open a Business Number for your corporation and mail the confirmation letter to your business address.

This Business Number can also be requested by calling 1-800-959-5525 (press *), you will be requested to provide the following information:

Corporation Number

Corporation’s Head office

Directors information (Personal Information such as Social Insurance Number, Date of birth, and company address).

GST/HST Number: After you receive the Business Number, you can request the CRA Agent to create a GST/HST Account for your Corporation.

You will be asked questions related to the registration and you will also be requested to provide the following information:

Effective Date of Registration (This can be the date of Incorporation which is at the front of your Articles / Certificate of Incorporation)

Filing Frequency (Annual, Quarterly or Monthly. Most of our clients file Annual Returns).

Fiscal Year End for the Corporation (We suggest that you speak to your Accountant to confirm what is the Year End that may benefit your corporation). The CRA will automatically assign December 31st if you don’t provide one.

Once you receive the GST/HST Number, CRA will mail you a confirmation letter for the Registration.

You must decide whether you want to use the “Quick Method” or the “Long Method” for GST/HST reporting. If your corporation grosses more than $400,000 per fiscal year, you must use the “Long Method”. If your corporation grosses less than $400,000 per fiscal year, you should use the “Quick Method” as it requires far less work on your part. To apply for “Quick Method”, you must file a Form GST/HST74 immediately.

Fill in parts A, B & D only and mail to your closest CRA Tax Centre.

Please click here to access the GST/HST74 Form.

5. How do I handle Payroll?

Subsequent to the federal government setting up a payroll account for your corporation, you will begin to receive requests from the government for monthly source deduction payments. There is a space provided on the back of the remittance form asking if you are not including a remittance at this point, state why. Please write something along the following lines:

“There are no regular salaried employees. Remittances will be made as required.”

Your Corporation might be required to remit Source Deductions by January 10th of each calendar year. It is important that you have your personal tax planning meeting with your Accountant by November to ensure you are not late for your payroll remittance.

6. I have prepared and read all By-laws and resolutions of my company

After you have filed incorporation documents, the next step to starting a corporation is to hold an initial board meeting and prepare your initial minutes for the corporation. This meeting is required in order to legally form a corporation. The initial directors and board members will approve the governing documents, make resolutions, and elect the first board of directors. The share certificates of stock ownership should be authorized by way of a resolution of the board.

7. I have signed all By-laws, Resolutions and Shares in the Minute book

You are required by law to own and maintain a Minute Book. Your Minute Book is a record of all transactions that have gone on within your company. Therefore, any time anything is changed or modified (e.g. change in Officers or Directors, declaring a bonus, issuing shares, etc.), it must be reflected in your minute book and, if applicable, filed with the Ministry of Consumer & Commercial Relations.

Companies Branch within 15 days after the resolution was made using Form 1 (Initial Notice/Notice of Change).

An annual meeting of shareholders must be held every year no later than fifteen months after the previous annual meeting.

8. I have retained a Chartered Professional Accountant

Accountants are the professionals who check the accuracy, fairness and general acceptability of a corporation’s accounting records. A corporation must generally appoint an accountant to prepare the annual financial statements of the corporation. The accountant should be a CPA or other professional with the proper accounting credentials.

9. I have signed up for a Bookkeeping Tool or Services

We encourage clients to Use a Bookkeeping Tool to keep track of all the Corporate Transactions (i.e. Expenses, Income, etc). We will be glad to help you set up your Account using Quickbooks Online or any other recommended tool.

Misc. Tips

-Visit us at www.cpa4it.ca and browse through our web site for useful information on how to operate your new corporation as well as to learn about updates or changes in government rules and policies.

Keep copies of all invoices generated by your corporation.

Make copies of all filings and forms sent to all government agencies and store these copies in the “Forms Filed” section in your minute book.

-Learn more about Corporate Tax Return vs Annual Returns.

 

– How to Register for My CRA Business Account.

 

-Learn more about The Company Key for Ontario Corporations.

 

 

 

1. I have informed my placement agency that I have incorporated

This is very important as it affects how your agency will structure your pay.

Your agency must be informed on a timely basis of any changes in your status. Be sure to give your agency a copy of your articles of incorporation, and corporate GST/HST number. If you are paid directly to your bank account, be sure to include a voided cheque from your corporate bank account. It is imperative you do not delay this action so you are paid correctly! If your agency is unaware that you have incorporated, they will continue to deduct EI & CPP from your cheques, and will give you a T4 marked as “Placement Agency – Self-Employed” at the end of the year.

2. I have opened up a bank account for my corporation

You will need to take your Articles of Incorporation to open up your corporate bank account. It is important that the account be a chequing account, and that you receive a month-end statement along with your returned cheques.

3. The “Form 1 Initial Return / Notice of Change by an Ontario Corporation

Ontario Corporations must complete and submit an Initial Return to the Ministry of Government Services within 60 days after the date of incorporation, amalgamation, or continuation. After filing an Initial Return, corporations must complete and submit a Notice of Change to the MGS within 15 days after any change takes place (e.g. when a corporation changes its address, directors, or officers). If you have processed a “Standard Incorporation” or an “Independent Contractor” Package with our firm, this Form 1 / Initial Return has already been processed on your behalf. If you selected the “Bare Minimum Incorporation” Package you will be required to complete the Form and mail it to the Ministry of Government Services. Please click here to access the Form 1 / Initial Return.

4. Business Number and GST/HST

Business Number: CRA will automatically open a Business Number for your corporation and mail the confirmation letter to your business address.

This Business Number can also be requested by calling 1-800-959-5525 (press *), you will be requested to provide the following information:

Corporation Number

Corporation’s Head office

Directors information (Personal Information such as Social Insurance Number, Date of birth, and company address).

GST/HST Number: After you receive the Business Number, you can request the CRA Agent to create a GST/HST Account for your Corporation.

You will be asked questions related to the registration and you will also be requested to provide the following information:

Effective Date of Registration (This can be the date of Incorporation which is at the front of your Articles / Certificate of Incorporation)

Filing Frequency (Annual, Quarterly or Monthly. Most of our clients file Annual Returns).

Fiscal Year End for the Corporation (We suggest that you speak to your Accountant to confirm what is the Year End that may benefit your corporation). The CRA will automatically assign December 31st if you don’t provide one.

Once you receive the GST/HST Number, CRA will mail you a confirmation letter for the Registration.

You must decide whether you want to use the “Quick Method” or the “Long Method” for GST/HST reporting. If your corporation grosses more than $400,000 per fiscal year, you must use the “Long Method”. If your corporation grosses less than $400,000 per fiscal year, you should use the “Quick Method” as it requires far less work on your part. To apply for “Quick Method”, you must file a Form GST/HST74 immediately.

Fill in parts A, B & D only and mail to your closest CRA Tax Centre.

Please click here to access the GST/HST74 Form.

5. How do I handle Payroll?

Subsequent to the federal government setting up a payroll account for your corporation, you will begin to receive requests from the government for monthly source deduction payments. There is a space provided on the back of the remittance form asking if you are not including a remittance at this point, state why. Please write something along the following lines:

“There are no regular salaried employees. Remittances will be made as required.”

Your Corporation might be required to remit Source Deductions by January 10th of each calendar year. It is important that you have your personal tax planning meeting with your Accountant by November to ensure you are not late for your payroll remittance.

6. I have prepared and read all By-laws and resolutions of my company

After you have filed incorporation documents, the next step to starting a corporation is to hold an initial board meeting and prepare your initial minutes for the corporation. This meeting is required in order to legally form a corporation. The initial directors and board members will approve the governing documents, make resolutions, and elect the first board of directors. The share certificates of stock ownership should be authorized by way of a resolution of the board.

7. I have signed all By-laws, Resolutions and Shares in the Minute book

You are required by law to own and maintain a Minute Book. Your Minute Book is a record of all transactions that have gone on within your company. Therefore, any time anything is changed or modified (e.g. change in Officers or Directors, declaring a bonus, issuing shares, etc.), it must be reflected in your minute book and, if applicable, filed with the Ministry of Consumer & Commercial Relations.

Companies Branch within 15 days after the resolution was made using Form 1 (Initial Notice/Notice of Change).

An annual meeting of shareholders must be held every year no later than fifteen months after the previous annual meeting.

8. I have retained a Chartered Professional Accountant

Accountants are the professionals who check the accuracy, fairness and general acceptability of a corporation’s accounting records. A corporation must generally appoint an accountant to prepare the annual financial statements of the corporation. The accountant should be a CPA or other professional with the proper accounting credentials.

9. I have signed up for a Bookkeeping Tool or Services

We encourage clients to Use a Bookkeeping Tool to keep track of all the Corporate Transactions (i.e. Expenses, Income, etc). We will be glad to help you set up your Account using Quickbooks Online or any other recommended tool.

Misc. Tips

-Visit us at www.cpa4it.ca and browse through our web site for useful information on how to operate your new corporation as well as to learn about updates or changes in government rules and policies.

Keep copies of all invoices generated by your corporation.

Make copies of all filings and forms sent to all government agencies and store these copies in the “Forms Filed” section in your minute book.

-Learn more about Corporate Tax Return vs Annual Returns.

 

– How to Register for My CRA Business Account.

 

-Learn more about The Company Key for Ontario Corporations.

 

 

 

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