Incorporate a Business in Canada – Even if It’s Inactive

Incorporating a business in Canada has more benefits than most people realize—even if your company isn’t actively trading or generating income. The perks go beyond the usual legal and tax advantages; they can extend to cost-saving benefits like reduced rates on phone plans, exclusive pricing on products, and lucrative bank account bonuses. Here’s a breakdown of why incorporating a business, even an inactive one, can be a smart move for Canadian entrepreneurs, freelancers, and anyone looking to maximize savings.

1. Get Access to Cheaper Business Phone Plans

Did you know that business customers often get better deals than individual customers on phone plans in Canada? Major carriers like Bell Canada, Telus, and Rogers frequently offer business-specific plans that are not only cheaper but often include perks like higher data limits, roaming options, and priority customer service.

By incorporating a company, you gain access to these business plans, which can be a game-changer if you want to cut down on phone bills while still receiving top-tier services.

2. Business Bank Account Sign-Up Bonuses

Many Canadian banks offer enticing bonuses for new business accounts. These bonuses can range from cash incentives to waived fees for the first few months or even a full year. Banks like TD Canada Trust, RBC, and Scotiabank regularly run promotions for business accounts, especially for incorporated businesses.

Opening a business bank account allows you to take advantage of these promotions and build a separate financial foundation for any future business endeavors. Plus, many business accounts offer services tailored for incorporated companies, such as merchant services, loans, and credit cards with higher rewards rates.

3. Access to Amazon Business Pricing and Discounts

Amazon offers exclusive benefits to registered businesses, including bulk pricing, discounts, and special deals not available to regular customers. Amazon Business accounts allow companies to order supplies, equipment, and other essentials at reduced prices. Even if you’re not actively running a business, an inactive incorporation allows you to create an Amazon Business account and enjoy savings on items that can be used personally or professionally.

By accessing Amazon’s business pricing, you’re effectively cutting costs on regular purchases—from office supplies to electronics. This is a valuable benefit if you frequently shop online and want to maximize your purchasing power.

4. Access to Business Credit Cards with Enhanced Rewards

Incorporated companies can apply for business credit cards that offer higher cash-back rates, travel rewards, and even exclusive perks like airport lounge access. Business credit cards typically come with higher spending limits and rewards that can quickly add up, especially if you’re using the card for everyday purchases. These cards are often more flexible than personal credit cards and may provide additional savings and benefits if managed effectively.

5. Separate Legal Entity and Limited Liability Protection

While this is a well-known benefit, it’s worth highlighting. Incorporating a company creates a separate legal entity, which can shield your personal assets from liability if you decide to start trading. Even if the company remains inactive, having this structure in place gives you peace of mind, knowing that your personal assets are protected from potential business liabilities in the future.

6. Professional Image and Networking Opportunities

An incorporated business—even an inactive one—can create a more professional image, which can open doors in the future for networking and business opportunities. Having an incorporated entity shows potential clients, investors, and partners that you’re serious and prepared. Plus, you’ll have access to networking events, business directories, and other platforms designed exclusively for incorporated businesses.

7. Additional Tax Planning Options

While this may not be immediately relevant for an inactive business, having an incorporated company offers flexibility for future tax planning. Canadian corporations benefit from favorable tax treatments, such as the small business deduction and income splitting opportunities. Should you decide to make the business active, these advantages are already in place and ready to be utilized.

How to Incorporate an Inactive Business in Canada

Incorporating a company in Canada is straightforward and can be done online either federally or provincially. Here are the general steps:

1. Choose a Business Name – Select a unique business name that isn’t already in use or register a numbered company if you prefer simplicity.

2. Select Incorporation Type – Decide between federal incorporation (giving you the right to operate across Canada) or provincial incorporation (only within a specific province).

3. File Articles of Incorporation – Submit these forms to the relevant government body, such as Corporations Canada or the provincial registry.

4. Obtain an Incorporation Certificate – After filing, you’ll receive an incorporation certificate, confirming your company’s legal status.

5. Open a Business Bank Account – Once incorporated, open a business bank account to access sign-up bonuses and manage finances separately from personal accounts.

Long-Term Benefits of Incorporating an Inactive Company in Canada

Incorporating a company, even if it remains inactive, is a long-term investment with hidden benefits. Not only can you take advantage of immediate savings through better phone plans, bank account bonuses, and Amazon Business discounts, but you also establish a foundation that offers flexibility, tax planning, and limited liability protection for future ventures.

Whether you’re a budding entrepreneur, freelancer, or just someone looking to reduce costs on everyday expenses, incorporating a business in Canada provides unique perks that can make a big difference. So, consider this as a savvy investment in your financial strategy, giving you the freedom to save and grow whenever you’re ready.