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Tom B.
Tom B., Barrister & Solicitor
Category: Canada Business Law
Satisfied Customers: 57
Experience:  25 years in legal practice and over 30 years in business.
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Trying to create an Ontario-based corporation with 2

Customer Question

Trying to create an Ontario-based corporation with 2 shareholders. I am a US resident and will own 60% and my partner (a Canadian Resident) will own 40%. We have 3 employees whom we would like to own stock options.
Our company sells software and medical testing equipment.
Submitted: 1 year ago via LawDepot.
Category: Canada Business Law
Expert:  MHPC replied 1 year ago.

There are two types of Ontario Corporations - one incorporated through Corporations Canada (Industry Canada) where the filing fee costs $200 and another one through the Ministry of Government Services where the filing fee is $360.00. I recommend the one through Corporations Canada because the annual maintenance is easier but either one works. If there are three directors (1US resident and 2 Canadian residents) then you will never have trouble with the "citizenship" of the corporation. If you have 2 directors, then it is better if both of them are Canadian citizens. For you to participate in the corporation, you can be an officer, such as President and Treasurer, so that you still sign off on bank records, income tax records and "checks" or, as we say in Canada - cheques. Lastly, so long as you have multiple classes of shares, you will have no problem granting various classes of shares to your 2 shareholders and stock options to your employees.

Customer: replied 1 year ago.
thank you
Expert:  MHPC replied 1 year ago.

You are welcome.