Finally, you’ve got the ball rolling. You are a corporation! But before you hang that “Open For Business” sign on the door you need to do some housekeeping. By that I mean you have to organize you business. Here is an outline of what is needed:
1. Call a meeting of the directors (even if you are the only one) to do the following:
- adopt a constitution for the corporation – a set of rules that will govern almost any situation the corporation may encounter.
- adopt the share certificate that the corporation will use to issue shares
- adopt a corporate seal if you want to use one – they are optional
- appoint your officers
- issue shares to your shareholders
- assign your officers banking authorization
- decide not to appoint an auditor (unless you are a large corporation)
- waive the formal notice for this meeting
2. Now that the basics are set up you need to have the first meeting of the shareholders (even if you are the only one) to take care of the following:
- elect new directors (probably the same as the first meeting)
- confirm and adopt your bi-laws and constitution
- confirm you decision not to appoint an auditor
3. Your meetings are over now you need to set up a minute book to hold all your corporate papers. Stationery and office-supply stores sell corporate minute books complete with the necessary dividers. All your corporate papers from meetings, financial reports and shareholder records, addresses and annual returns as well as any other business related papers are stored in here.
You’re almost there now. Set up your payroll system, WCB, apply for a GST number, get your provincial licenses (if necessary), insurance plan and know your municipal regulations. When the paper work is done then plug in that ‘OPEN’ sign and get ready for business.
