Technology and legislation have made it easier for people to do certain things for themselves – such as incorporating a business, or creating a Will.
But is it a good idea? Sometimes, just because you can do something yourself does not necessarily mean that you should. You probably can figure out if you have the flu by ‘googling’ your symptoms on WebMD, but giving yourself a medical diagnosis may not be wise – and may in fact be dangerous
When it comes to incorporating a business, the mechanical process of incorporating is not terribly complex or inaccessible to members of the public. However, the mechanics of incorporation is onlypart of the process. There are other considerations, not the least of which are decisions about share structure, directors and shareholders, and ensuring that annual reporting requirements and record keeping requirements are met, and the like.
As lawyers, we have to sort out situations from time to time where a person has incorporated their business on their own only to find out later on that they did not do it correctly or they failed to recognize other requirements they had to meet. For example, we periodically have to amend the Articles of Incorporation of a company to accommodate a certain type of corporate transaction (e.g., a share freeze) because the Articles should have been prepared differently at the start. In other situations, we have to put together a minute book for someone who did not appreciate they were required to do so; often, this becomes a rush because the business is getting a loan and certain corporate documentation will be required by the lender – documentation the incorporator had no idea they would need.
Incorporation is one of those situations where an ounce of prevention is worth a pound of cure. If you have incorporated your business by yourself and are uncertain if you have done it correctly, we would be happy to help you. If you are considering incorporating, we are ready and willing to help so that you can be sure your corporation is set up properly.
Call or e-mail Stephen C. Mogdan for any of your corporate needs at: scmogdan@stringam.ca or (403) 328-5577
