For the London Free Press – May 12, 2008

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Many people presume it is better to incorporate a new business as a federal corporation rather than an Ontario corporation. But an Ontario corporation is usually the more practical alternative.

Ontario corporations can be created quicker than federal ones. They are also cheaper and easier to maintain going forward.

Many believe a federal corporation is required to operate across or outside Canada. Depending on the nature of the business, one with activities in several provinces may be better off incorporating federally, but an Ontario corporation can operate in various provinces as well.

If a corporation maintains a physical presence in a province other than where its head office is located, registration as an extraprovincial corporation is required, whether the company is incorporated federally or in Ontario.

Some feel a federal corporation is more prestigious, but that perception is neither strong nor widely held.

Some argue the corporate name is better protected if it’s a federal company. Use of a corporate name by either a federal or provincial corporation does not give the name any protection as a brand or trademark. If the corporate name will be used as its brand identity, it should be protected by a trademark registration.

Another advantage of an Ontario corporation is that bankers, accountants and lawyers are much more familiar with them. That saves time and money in the long run.

And when choosing a name for your corporation, whether federal or provincial, it’s a good idea to check to see if the domain name is available for various top-level domain extensions, including .ca and .com. And get those names quickly, while they are available.

A domain name can be a necessity for a business. A domain name the same as one’s corporate name can be useful international advertising. It may be the first place potential customers go to find information about a business.

Businesses also give a better impression if their e-mail addresses use their name. For example, dcanton@harrisonpensa.com seems more professional than dcanton@hotmail.com.

If the business intends to sell its products or services outside Canada, it may want to do at least some cursory trademark searches in other countries to see if the proposed name has been used by others for similar products or services.

It’s also prudent to put the proposed name in quotes and do a Google search to see what comes up. That will show any common uses for that name and what your customers will see when they search your name. It would not be a good thing if Google searches show sites that your customers might confuse with yours, or might be inconsistent with the image you want for your business.

It’s far better to think through federal versus provincial incorporation and choice of name at the outset, than to incorporate and find out you have to compromise on your domain name or change your name.