What is a NUANS report?
Answer: The Nuans™ Report consists of a listing of matching small businesses, corporations, and trademarks related to your proposed business name.
Is a NUANS report necessary?
Answer: Yes, a NUANS report is necessary if you plan to register a named business instead of a numbered company.
A NUANS report will be required when incorporating in jurisdictions such as Alberta, Ontario, Canada (Federal), New Brunswick, Nova Scotia, and Prince Edward Island. To get a NUANS report to reserve your business name, click here.
How long does it take to get a NUANS report?
Answer: It can be as fast as 5 minutes to as long as a 3 Business Days depending on the processing queue you have chosen.
How long is a NUANS report valid?
A name proposed on a NUANS report is reserved for 90 days. If you wish to register a business it is important that you have the incorporation completed within the 90 days If the NUANS Search expires, you will need to purchase a new report for that name.
Can you reserve a company name?
Answer: Whether you plan to do business through the company in the future or you want to protect the name to prevent other companies from registering it, incorporation is necessary.
What sets apart a sole proprietorship from a corporation?
Answer: Well, a sole proprietorship is the most basic form of business structure, where a single owner reports all earnings on their personal income tax return. In this setup, there's no legal separation between the business and the owner, meaning that the owner assumes full financial and legal responsibilities. Conversely, a corporation establishes a distinct legal identity for the business, separating it from the owner. As a result, the owner isn't personally liable for the business's financial and legal obligations. Moreover, being a corporation offers certain advantages such as favorable small business tax rates and improved access to capital.
What is a Sole Proprietorship?
Answer: At its core, a sole proprietorship is a business structure where a single individual assumes all the legal responsibilities, profits, and debts of the company. It's a straightforward and direct approach to entrepreneurship.
What is an Incorporation?
Answer: Incorporation transforms your business into its own legal entity, separate from the owners. It offers greater liability protection for business owners compared to sole proprietorships or general partnerships. When deciding to incorporate, you'll also need to choose between provincial and federal incorporation, each with its own set of rules and regulations.
What are the disadvantages of incorporating?
Answer: Incorporating a business is advantageous as it protects personal assets, however, there are several disadvantages of incorporating a business that owners should be aware of before deciding to incorporate.
Does incorporating save taxes?
Answer: In a way, incorporating can save you taxes as an owner.
Is it better to be self-employed or incorporated?
Answer: Incorporation offers several advantages over being self-employed, including tax benefits and limited liability.
How can I save taxes by incorporating in Canada?
Answer: Small businesses can benefit from incorporating, which offers tax advantages such as the small business deduction.
What are the 3 main reasons to incorporate a business?
Answer: There are many reasons to incorporate a business, but the top 3 reasons include personal assets protection, a trustworthy image, and tax savings.
What is the fundamental difference in legal structure between incorporation and sole proprietorship?
Incorporation creates a separate legal entity distinct from its owners (shareholders), offering limited liability. Sole proprietorship considers the business and the owner as the same legal entity, with the owner personally responsible for all business debts.
How does liability protection differ between a trade name and incorporation?
Incorporation provides limited liability, safeguarding personal assets of shareholders. Conversely, a trade name, much like a sole proprietorship, does not offer liability protection, holding the individual personally responsible for business debts.
What are the tax implications when comparing incorporation to sole proprietorship?
Incorporation subjects the business to corporate tax rates, potentially offering tax advantages like income splitting and lower corporate tax rates. Sole proprietorship taxes business income at the owner's personal tax rate, with no separate business tax return.
In terms of ease of setup and maintenance, how does a partnership compare to incorporation?
Establishing a partnership is relatively uncomplicated, involving a partnership agreement outlining roles, responsibilities, and profit/loss distribution. Conversely, incorporation is more complex, requiring extensive paperwork, legal compliance, and ongoing reporting.
What distinguishes the control and decision-making aspects of a trade name from a sole proprietorship?
A trade name is controlled by the individual or entity operating under that name, whereas a sole proprietorship grants complete control and decision-making authority to the owner.
How does transfer of ownership differ between incorporation and sole proprietorship?
Incorporation allows for easier transfer of ownership through the sale of shares or ownership stakes. Conversely, transferring ownership in a sole proprietorship is more challenging due to the business being tied to the individual owner.
How does the transfer of ownership differ between a trade name and a partnership?
Transferring a trade name is possible but involves regulatory processes. On the other hand, in a partnership, transfer of ownership typically requires agreement among the partners and adjustments to the partnership agreement.