Frequently Asked Questions
What is DIY Legal?
DIY Legal provides professional legal templates and E-books to help Canadians handle common legal tasks on their own.
Are your templates specific to Ontario?
No. We offer an Ontario Incorporation Guide and a Federal Incorporation Guide. The Federal Incorporation Guide can be used anywhere in Canada (except Quebec, because we do not speak French).
How do I access my purchase?
After completing your purchase, you will receive an email with a download link to access your digital files.
Can I get a refund?
Due to the digital nature of our products, all sales are final. Please review product descriptions carefully before purchasing.
Do I need a lawyer to use these templates?
Our templates are designed for self-guided use, but we always recommend consulting a licensed lawyer for complex legal matters. Incorporation just is not that complex and people regularly get charged $1,500 - $2,500 + which we think is somewhat criminal. However, we don't want people using AI and doing it themselves, because the chances of it being wrong are high. Therefore, we think our products provide tremendous value for the price. You have confidence what you are getting is correct, but at a fraction of the cost.
Federal vs. Ontario Incorporation: Which Is Better?
One of the first legal decisions Ontario entrepreneurs face is whether to incorporate federally or provincially in Ontario. The answer depends on where your business operates, how important national name protection is, and how much ongoing compliance you are prepared to manage.
Both options create a corporation, which is a separate legal entity. At the federal level, Corporations Canada explains that incorporation creates a new legal entity with many of the rights of a person, and federal incorporation can provide the right to use your corporate name across Canada. Ontario incorporation, by contrast, is usually focused on carrying on business as an Ontario corporation through the Ontario Business Registry, which allows businesses to incorporate and update corporate information online.
For many small businesses in Toronto, Mississauga, Ottawa, Hamilton, Vaughan, Markham, London, and across Ontario, an Ontario corporation is often the simpler starting point. You incorporate under the Ontario Business Corporations Act, keep an Ontario registered office, maintain your Ontario corporate records, and file required Ontario updates through the provincial system.
Federal incorporation may be a better fit if you plan to operate under the same legal name across Canada, expand into multiple provinces, raise capital nationally, or build a brand where national name consistency matters. Corporations Canada states that the Canada Business Corporations Act allows businesses to incorporate federally and operate under one name across the country.
That said, federal incorporation does not eliminate provincial registration requirements. A federal corporation may still need to register in each province or territory where it conducts business. Corporations Canada notes that corporations are required to register in the provinces where they conduct business, and federal corporations can register in Ontario at the same time they incorporate online. Canada.ca similarly explains that corporations must register as extra-provincial or extra-territorial corporations in other Canadian jurisdictions where they plan to do business.
Key Differences for Ontario Business Owners
The biggest difference is name protection. A named federal corporation receives stronger national name protection once approved by Corporations Canada. This can matter if your Ontario business plans to become a national brand or operate in several provinces.
Ontario incorporation is usually more local and practical. For a professional services business, holding company, family business, consulting company, real estate corporation, or local operating business based primarily in Ontario, an Ontario corporation may be enough. It keeps the corporate structure tied to the province where the business actually operates.
Compliance is another factor. A federal corporation must maintain federal corporate filings and may also need provincial registrations. Corporations Canada notes that every federal corporation must file an annual return with Corporations Canada each year. An Ontario corporation has its own Ontario corporate recordkeeping and filing obligations.
Cost and timing also matter, but they should not be the only deciding factors. The better question is: where will the business operate over the next three to five years? If the business is Ontario-focused, Ontario incorporation may be more efficient. If the business has a national growth plan, federal incorporation may justify the extra compliance.
Do You Need Corporate Resolutions After Incorporating?
Yes. Whether you incorporate federally or in Ontario, incorporation is only the first step. Your corporation should be properly organized with by-laws, director and shareholder resolutions, share issuances, registers, and a minute book. Ontario corporations must prepare and maintain records including articles, by-laws, shareholder meeting minutes and resolutions, a director register, securities register, and other statutory registers under the Ontario Business Corporations Act.
This is why choosing the right jurisdiction and maintaining proper resolutions go hand in hand. A corporation that is incorporated but not properly organized can create issues when opening bank accounts, adding shareholders, paying dividends, selling shares, or completing due diligence.
Which Is Better: Federal or Ontario Incorporation?
For an Ontario-only business, Ontario incorporation is often the practical choice. For a business that wants national name protection or expects to operate across Canada, federal incorporation may be worth considering.
The best choice depends on your name, industry, shareholders, tax structure, expansion plans, and risk profile.
This article is general information for Ontario business owners and is not legal advice for your specific corporation.