Lawyer to Incorporate

The short answer is “no.” You cannot incorporate using an online service. There are many online services that claim to incorporate your business for as little as $100. However, they will not complete the incorporation process. They will only complete step 1 of a two-step process. That means, you will receive articles of incorporation, but that does not mean that the incorporation process is complete or valid. It is only complete and valid when you complete step two, which occurs when you prepare organization resolutions and issue shares to the shareholders of the corporation. You can also complete step one by yourself. The provincial and federal government provides this service for free and do not need to spend $100-$200 for a service that provides no extra value at all.

Your corporation is not compliant with its legal obligations under the Ontario Business Corporations Act (OBCA) or the Canada Business Corporations Act (CBCA), as applicable. Having an update to date minute book is important especially in situations where you are looking to sell your shares in the corporation, obtaining a business loan, or if your corporation is undergoing an audit by the CRA.

While it is possible to incorporate yourself, it will require a great deal of research yourself. You will have to review the Ontario Business Corporations Act and find out what the required resolutions are. You will have to prepare the resolutions, issue the shares, and obtain a formal minute book. For most people, they are advised to use a lawyer to incorporate, which will ensure that all the legal requirements for incorporation have been fulfilled. Using a lawyer will also help you get set up with all the other aspects of starting a business, from preparing employment, service, and distribution contracts, branding and trademarks, and obtaining the corrects licenses and permits.