FAQ
There are several features that are unique to a corporation which makes it the favored legal structure for many businesses. These include:
Limited Liability. A primary advantage of incorporating a business is the limited liability conferred upon its shareholders. The shareholders are not liable, in most cases, for the debts and other obligations of the corporation. A shareholder’s liability for the debts of the corporation is limited to the amount of funds such shareholder has invested in the corporation. Creditors only have rights against the corporation itself and not against the shareholders.
Perpetual Existence. A corporation has the feature of perpetual existence. It is not dependent upon the life of its shareholders, directors, and officers and will not be affected by changes in, deaths or retirements of its members since the corporation is considered a separate “person”. This advantage allows for the orderly transfer of ownership of the corporation (i.e., its shares). Furthermore, due to its independent legal status, it may own property in its own right, enter into contracts and sue (or be sued).
Capital Acquisition. A corporation may offer greater potential sources of capital than other business forms (such as sole proprietorships and partnerships). Corporations can issue various classes of shares (in addition to other debt instruments such as bonds) to raise capital, which, typically, is more attractive to investors.
Tax Advantages. There are tax advantages to incorporating your business, such as lower income tax rates and carrying forward losses of previous years to offset profits in subsequent years, among others.
Credibility and Prestige. Incorporation may help provide your business with credibility and prestige in its business dealings.
As a rule, an objection to a notice of assessment or a notice of determination must be filed within 90 days of the date shown on the notice.
In terms of Canada Revenue Agency:
Filing deadlines – If you are an individual (other than a trust) or filing for a graduated rate estate for the year, the time limit for filing an objection is the latest of the following two dates: one year after the date of the return’s filing due date for the year; or 90 days after the day we sent the notice of assessment or determination. In any other case, you have to file an objection within 90 days of the day we sent the notice of assessment or determination.
In terms of Revenue Quebec:
It may be to an individual’s or a testamentary trust’s advantage to file an objection after the 90 days provided for above. An individual or trust may file an objection within one year after the filing-due date (within the meaning of section 1 of the Taxation Act) for the taxation year, where the objection is to:
an assessment under the Taxation Act;
a premium relating to the eligible wages of a person to whom section 51 of the Act respecting parental insurance applies, to the business income of a self-employed worker or to the eligible remuneration of a person responsible for a family-type resource or an intermediate resource, issued under chapter IV of that Act.
an assessment under sections 220.2 to 220.13 of the Act respecting municipal taxation;
an assessment issued pursuant to section 83 of the Act respecting the legal publicity of enterprises;
an assessment relating to an amount payable under section 34.1.1, 37.6 or 37.17 of the Act respecting the Régie de l’assurance maladie du Québec;
an assessment relating to self-employed earnings or earnings as a person responsible for a family-type resource or an intermediate resource under the Act respecting the Québec Pension Plan;
an assessment under sections 358 to 360 of the Act respecting the Québec sales tax.