Setting up a Law Society of Ontario (LSO) Lawyer Professional Corporation (LPC) is a popular option for lawyers in Ontario who want to incorporate their practices. It provides many benefits, including limited liability protection, tax advantages, and professional status. Here are some steps to follow to set up an LPC:
- Choose a name for the corporation: The name must include “Professional Corporation” or “P.C.” and comply with the LSO’s guidelines.
- Determine share structure: An LPC can have multiple classes of shares, but each class must be held only by lawyers who are licensed by the LSO.
- Obtain a Certificate of Authorization: This certificate is required by the LSO for an LPC to practice law in Ontario.
- Draft and file Articles of Incorporation: These articles must comply with the Ontario Business Corporations Act and the LSO’s requirements for LPCs.
- Obtain a Federal Business Number and register for HST: This step is necessary to conduct business and pay taxes in Ontario.
- Open a corporate bank account: An LPC must have its own bank account to separate business and personal finances.
- Draft and adopt corporate bylaws: These bylaws must comply with the Ontario Business Corporations Act and the LSO’s requirements for LPCs.
- Obtain professional liability insurance: This insurance is required by the LSO for all LPCs.
- Comply with ongoing legal and regulatory requirements: LPCs must comply with ongoing legal and regulatory requirements, such as filing annual reports with the LSO, maintaining books and records, and complying with tax laws.
Setting up an LPC can be a complex process, and it’s essential to have a business lawyer in Toronto who is knowledgeable in this area to help guide you through the process. A lawyer can assist with all aspects of setting up an LPC, including compliance with legal and regulatory requirements, drafting articles of incorporation and corporate bylaws, and advising on tax advantages and liability protection. By working with a lawyer, you can ensure that your LPC is set up correctly and compliant with all applicable laws and regulations. If you have any questions, please contact us at info@falconlawyers.ca or 1-877-892-7778.
