Starting a business is the most exciting risk you will ever take. But in the rush to launch, many founders make a critical error: they treat incorporation as a simple administrative task.
They use a “cheap and fast” online service, resulting in a generic “One Class” share structure. The “Template Trap”:
A generic structure might work for today, but it suffocates you tomorrow.
Change Capital Gains Exemption to Lifetime Capital Gains Exemption (LCGE)
Fixing these mistakes later often costs 10x more in legal fees than doing it right the first time.
Your Minute Book is the DNA of your business. If the DNA is flawed, the business cannot mature.
| Feature | The "Online Instant" Template | The Redmond Strategic Structure |
|---|---|---|
|
Share Classes |
Rigid. usually 1 class of Common Shares. Everyone gets the same rights. |
We structure organizations with a variety of share classes which contain different rights and privileges, to accommodate a variety of desired outcomes and circumstances. |
|
Income Splitting |
Blocked. You cannot pay dividends to family members without giving them control. |
Enabled. We structure “Non-Voting Dividend Shares” specifically for tax-efficient sprinkling (TOSI compliant).
|
|
Bank Readiness |
Rejected. often lacks the Banking Resolutions and Bylaws banks require to open an account. |
Approved. You receive a complete electronic Minute Book that banks accept immediately |
|
The “Clock” |
Delayed. The 24-month clock for Capital Gains Exemption might not start. |
Activated. We ensure your shares qualify for the LCGE immediately upon issuance. |
|
Tax Accounts |
DIY. You navigate the CRA maze alone to find your BN and HST numbers. |
Done. We register your Business Number, HST, Payroll, and WSIB accounts correctly. |
We guide you through a proven 4-stage process to launch your business legally and efficiently.
We run the math. Is incorporation actually right for you now? If you are launching a side hustle that will lose money in Year 1, a Sole Proprietorship might be better so you can write off those losses against your personal employment income. We tell you the truth, not just sell you a corporation.
We handle the heavy lifting. We file the Articles of Incorporation with the Ministry, provide your solicitor with all of the requisite information to prepare your Minute Book, and register you for GST/HST and Payroll. You walk away with a fully compliant, “bank-ready” corporation.
A corporation needs a brain. We set up your cloud accounting file (QuickBooks Online), connect your bank feeds, and teach you the “Golden Rules” of deductible expenses so you stay audit-proof from Day One.
Did you start as a Sole Prop and grow too big?
If you transfer your existing assets (brand, equipment, inventory) to a new corporation incorrectly, the CRA treats it as a “Sale” and sends you a massive tax bill. We execute a Section 85 Election to roll these assets over tax-free.
Going into business with a partner?
A clear agreement is better than a marriage contract. We advise on the financial clauses of your Shareholders’ Agreement—Shotgun Clauses, Valuation Formulas, and Exit Rules—to prevent ugly disputes later.
Are you a Doctor, Dentist, or Lawyer?
We specialize in incorporating Professional Corporations. We understand the specific regulatory requirements of your governing college (e.g., Law Society, RCDSO) and structure your PC to maximize tax deferral.
Share classes, minute books, and rollovers can be overwhelming. “Ask Adam” is here to translate the complexity into plain English before you book your consultation.
(e.g., “Can I write off my home office?”)
In Ontario, the small business corporate tax rate is approx. 12.2%, while the top personal tax rate exceeds 53%. If you earn $200,000 but only need $100,000 to live, leaving the remaining $100,000 inside the corporation allows you to invest it with only 12% tax taken out—creating a massive compound growth advantage over time.
This is the “Founder’s Reward.” It allows you to sell your shares tax-free up to ~$1.25 Million. However, your shares must be held for 24 months and meet strict asset purity tests. We structure you today so you qualify in the future.
You must register once you hit $30,000 in revenue in a 12-month period. However, we often recommend “Voluntary Registration” from Day One. Why? So you can claim back the HST you pay on your startup costs (laptops, rent, inventory).
Yes, but you must be careful. The “Tax on Split Income” (TOSI) rules are strict. If your spouse is not actively involved in the business, paying them dividends can trigger the highest tax rate. We help you navigate these rules legally (e.g., paying a reasonable salary for administrative work).
Don’t build your skyscraper on a cracked foundation.
Launch your business with a structure designed for wealth.