INCORPORATION REPORTING LETTER

Contact Neufeld Legal PC for your incorporation legal work at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

An incorporation reporting letter from a lawyer after a business's incorporation is a formal and comprehensive communication that marks the completion of the incorporation process. It serves several critical purposes for the client, including providing a record of the transaction, explaining the new corporation's structure, and outlining the next steps and ongoing legal obligations.

• Confirmation of Completion: It formally informs the client that the business has been legally incorporated with the government and provides the new corporation's official name, incorporation date, and corporate number.

• Summary of Work Done: It summarizes all the steps the lawyer has taken on the client's behalf, which can help justify the legal fees and clearly demonstrate the value of the services.

• Client Protection and Risk Management (for the lawyer): It acts as a clear record of the advice given, the decisions made, and any limitations on the lawyer's retainer. This is a crucial document for a lawyer's professional file to prevent future claims of negligence or misunderstanding.

• Outlining Client's Ongoing Obligations: Perhaps the most important function for the client is to clearly highlight the tasks that still need to be done and the corporation's future compliance requirements.

A reporting letter after incorporation will generally include:

• Incorporation Details: The official corporate name, date of incorporation, jurisdiction (e.g., federal or provincial), and corporate registration number.

• Corporate Structure; A summary of the finalized structure, including the share capital/share structure, the number of directors, and the initial officers.

• Key Documents: Confirmation of the creation of internal organizational documents like the Articles of Incorporation and Corporate By-laws (rules for the company's internal operation).

• Enclosed Documents: A list and copies of all essential documents, which often includes the Certificate of Incorporation, the corporate by-laws, share certificates (or stub book), and the initial organizational resolutions.

• Post-Incorporation Steps: A clear outline of necessary immediate actions, such as:

  • Calling the first organizational meeting of directors/shareholders.

  • Appointing corporate officers (if not already done).

  • Opening a corporate bank account.

  • Registering for a tax number or other government accounts (e.g., payroll, GST/HST).

• Future Compliance: Information on the company's ongoing maintenance obligations, such as:

  • Filing annual government reports.

  • Maintaining the corporate minute book.

  • Filing annual corporate tax returns.

  • Updating the corporate register when directors, officers, or addresses change.

• Limitations & Other Advice: The lawyer's advice on related legal areas that were not part of the incorporation retainer, such as:

  • The need for a Shareholders' Agreement (to govern the relationship between owners).

  • Potential intellectual property (IP) protection.

  • Tax implications (and a recommendation to see an accountant).

  • Employment law matters.

• Fees and Disbursements: The final statement of account for all legal fees and costs (disbursements) related to the incorporation.

So if you are looking to incorporate a new corporation or deal with the corporate legalities impacting your company, contact us at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or via email at Chris@NeufeldLegal.com.