To compare the benefits of federal incorporation to provincial incorporation, you can view the following information on federal incorporation here before creating a final decision.
Pros:
- The business can only be operated in a specific province.
- There is no need for annual filings and annual fees.
- You can always use the provincial incorporation now and then change to federal incorporation later, although there is not guarantee that you would be able to obtain or keep the same name for your federally incorporated company.
- The website provides more protection for the information of the provincial incorporation than the federal incorporation.
Cons:
The process for incorporating provincially can be more complicated compared to the processing for incorporating federally. Federal incorporation will often include the automatic filing of any additional forms. It also takes more money to register a provincial corporate, which costs roughly $380 to $400 in Ontario.