Start a Canadian company checklist

Most entrepreneurs think about accounting after they incorporate. The checklist below reverses that order. It is the sequence we run on every registration at The Accounting Doc, from the structure decision to the first monthly close, so nothing is scrambled at year-end. Work through it top to bottom. Each section ends with what we handle for you if you would rather not do it yourself.

1. Decide the structure

The first decision is whether to run as a sole proprietorship, an Ontario corporation or a federal corporation. It is not always obvious. If your profit is close to what you spend personally, a sole proprietorship may be cheaper to run. Incorporation makes sense when you retain profit in the business, want liability separation, or your clients and lenders expect it.

• Estimate first-year revenue and what you will need to take out personally.
• Note whether clients or lenders require a corporation.
• Decide whether you will operate mainly in Ontario or across Canada. Federal incorporation gives Canada-wide name protection but requires 25% Canadian-resident directors and extra provincial registration. Ontario is simpler and has no director residency requirement.
• If you are a realtor, physician, dentist or other regulated professional, check whether a professional corporation or a PREC is the right vehicle.

We model both options against your revenue, risk and who you sell to before you register anything.

2. Choose the name

A numbered corporation is faster and cheaper. A named corporation requires a NUANS name search. If you are building a brand, register the name.

• Shortlist two or three names in case the first is taken.
• Decide named or numbered.
• For a sole proprietorship, the Ontario business name registration is the equivalent step.

3. Gather the details for registration

Registration moves quickly once the inputs are complete. For an Ontario corporation we need:

• Identification for each shareholder and director.
• The proposed company name, or confirmation that a numbered corporation is fine.
• A short description of the business activity.
• The number of shareholders and the number of directors.
• An address for corporate records and CRA correspondence. For founders outside Canada we coordinate registered-office services where available.

With those in hand, an Ontario corporation is typically registered within one to two business days.

4. Open the CRA accounts you actually need

A Business Number is the base. Program accounts are added to it depending on what the business does:

• RT (GST/HST) if you sell taxable goods or services. Registration is generally required once taxable revenue exceeds CAD 30,000 over four consecutive quarters. Registering earlier lets you claim input tax credits, so we review whether early registration helps you.
• RP (payroll) if you hire employees.
• RM (import/export) if you move goods across the border.

CRA accounts and the accounting setup typically complete within one to two weeks after registration, depending on responses and requirements.

5. Set up the minute book and resolutions

Our Ontario corporation complete package coordinates the minute book and organising resolutions alongside GST/HST registration and a payroll account where required. Shareholder agreements and legal opinions come from your lawyer; we handle registration filings and accounting, not legal advice.

6. Build the accounting system before the first sale

This is the step most new owners skip and regret in March. Done at the start, it takes an afternoon.

• Open a separate business bank account and, if needed, a business credit card.
• Choose cloud accounting software. We work in QuickBooks Online and Xero.
• Set the chart of accounts for your industry, so job costs, commissions or product margins land where you can see them.
• Agree a receipts workflow: where documents go and who codes them.
• Set the monthly close date, the fixed day by which accounts are reconciled.

7. Put the compliance calendar in writing

Canadian deadlines are fixed. The calendar covers GST/HST filing frequency, payroll remittances, corporate annual filings, tax instalments and the T2 corporate return. Every monthly plan we offer includes a compliance calendar and a real person who knows your file.

8. Plan how you will pay yourself

Salary versus dividend planning is included from the Business plan. The conversation belongs before December, not after, so the mix is deliberate rather than whatever is left in the account.

9. If you are outside Canada, add three lines

• Registering a Canadian company does not create residency, citizenship, immigration status, credit, loan or bank-account approval. Immigration matters go through a licensed immigration professional.
• Bank and payment processor approval is decided by each institution on its own criteria. We prepare complete corporate records to support the application; approval is never guaranteed.
• A Canadian corporation pays Canadian corporate tax on its income regardless of where the shareholders live, and distributions to non-resident shareholders may attract withholding tax, often reduced by treaty. Plan that before taking money out.

What we handle, and what it costs

Registration is priced like a product. An Ontario sole proprietorship starts from CAD 149, an Ontario corporation from CAD 599, and the business launch package, which adds cloud accounting setup, a compliance calendar and a 60-minute structure and tax orientation, from CAD 1,299. Government fees are separate and shown before you pay. For founders abroad, the Canada Launch packages start from CAD 1,495. Every price is a starting point, confirmed in writing before work begins.