Federal vs Provincial Incorporations | The Two Main Differences

What are the main differences between Federal and Provincial Incorporations? Watch the video below! Today we're going to talk about the difference between Federal and Provincial incorporations. So if you've decided that you need to incorporate your company, the next step is to decide where you're going to do that whether it's in BC or another Province or if you're going to incorporate federally so we'll take a look at the differences.

There are two main differences that I want to highlight today.

The first one is filing fees. So the cost for filing a federal registration is $200 plus the name reservation search and in BC is $351.50 and also the name reservation fee on top of that.

Difference Between a Non-Competition Clause vs. a Non-Solicitation Clause

In this video, we're going to take a look at non-competitions and non-solicitation clauses. These types of clauses are often found in employment agreements, contractor agreements and shareholder & partnership agreements.

Today we're going to take a look at non-competition and non-solicitation clauses.

These types of clauses are often found in employment agreements contracts or agreements and also shareholder and partnership agreements. So they're very important to understand.

What's a non-competition clause?

In a non-competition clause, the employer is prohibiting the employee from competing with the business both for the term of employment and for a period of time after the employment is over. So, whether the employee leaves or is fired, it doesn't really matter but for period of time usually, six months to a year that employee is going to be prohibited from competing with the business.

Benefits of Using a Holding Company | 4 Reasons To Consider A Holding Company

What are the benefits of a holding company?

Asset Protection

A holding company can provide you with more protection over your business. When you transfer non-essential or redundant assets out of your Operating Company into your Holding Company, then if your Operating Company was ever sued or if creditors were seeking to obtain assets from the OpCo, the assets would be protected because they would be in your HoldCo.

Qualified Small Business Shares

One day you’ll be selling your business, and hopefully taking advantage of the lifetime capital gains exemption. Your shares must qualify in order to utilize the lifetime capital gains exemption. There is a very of criteria that the business must meet in order to make use of the exemption and, one of them is that 90% of the assets in the Operating Company must be actually used - that is, you can’t have too much excess cash lying around. Holding companies allow you to transfer that cash out of Operating Company through a tax-free dividend to keep your shares qualified

Thinking of Incorporating your Small Business?

This video describes the main benefits of incorporation for the small business owner:

1) Liability protection

2) Saves you money on taxes

3) Eligibility for the Lifetime Capital Gains Exemption upon sale of your shares

4) Flexibility in how you structure, fund and operate your small business