Corporations And All Their Legalities

Corporations are a living, breathing entity. And, as with all living things, there are rights and obligations they must live by – similar to a human being!

Many people wonder why they should incorporate. Incorporation limits the liability of a shareholder from the debts, obligations and liabilities of the corporation to the amount of their initial investment to purchase shares in the corporation. A sole proprietor or a partnership could lose their personal assets well beyond those invested in the business.

And remember, the rate of taxation for the corporation is lower than personal tax rates!

Articles of Incorporation

These are very important. They must be kept in a secure place and up to date. These are the corporation’s constitution (or rules they live by) and the corporation’s birth certificate. It names where the corporation lives, who the directors and officers are and what share classifications the corporation has.

If shares change hands, or treasury shares are sold to a new individual, the government must be informed. If new directors are brought on board, the government must be informed. If new officers are elected, the government must be informed. There are very specific time limits that must be followed.

That’s not all. The company minute book must reflect the proper minutes taken the proper way to show the addition of directors, the election of officers and the disposition of shares.

Don’t forget the different registries. All these must be brought up to date the proper way. If any of these steps are not correctly done, the different government agencies can nullify or ignore all the work your firm is trying to do.

Is incorporation the best way for your firm to go? Does it really cost “an arm and a leg” like your cousin said it does? Don’t listen to “arm chair specialists”. A free consultation with us may be the best twenty minutes spent.

Perhaps your company is already incorporated, but you realize the minute books and registries need to be brought up to date. Give us a call to sit down with us and have us advise you what needs to be done and how reasonable the costs to do all this are. 

Come see us for these and any of your incorporation/legal needs. We are ready to assist you with many years of paralegal training and experience.

We can get your Office up and running from the very start to the end.
We can support your every need!


For More Information please contact: Corporations