Entrepreneurship & Small Business

Lawyer wants $2000+ to incorporate a business

  • Last Updated:
  • Jun 9th, 2018 2:17 am
[OP]
Newbie
Nov 2, 2010
9 posts
Vancouver

Lawyer wants $2000+ to incorporate a business

What the hell is going on here? Shouldn't this cost less than $500 all in?
33 replies
Penalty Box
Dec 27, 2013
8003 posts
3929 upvotes
Toronto
costs you $500 to do it yourself.
add in profit.
[OP]
Newbie
Nov 2, 2010
9 posts
Vancouver
Yeah.

Between lawyers, accountants, and suppliers, it seems everybody is making money except for me. I guess this is why people don't quit their day jobs.
Deal Addict
User avatar
Aug 15, 2015
1513 posts
191 upvotes
Markham, ON
Why are you incorporating?
Deal Fanatic
User avatar
Dec 3, 2009
5424 posts
819 upvotes
Toronto
DIY, as long as you do it properly. Some "simpler" businesses might not be that hard. Otherwise you are paying a lawyer to "fix" the corporation that wasn't setup properly.
Remember to be an RFD-er and NOT a degenerate.
Moderator
Sep 27, 2003
9523 posts
2261 upvotes
Newmarket
Apparently no one is permitted to make a living anymore.

OP, $500 is the fee for you to do it yourself. $2000 is if you ask a Lawyer to do the work for you.
RFD Forums Moderator
[OP]
Newbie
Nov 2, 2010
9 posts
Vancouver
I looked around some more and I see it's a reasonable figure. My previous expectations were based on jokers here on RFD saying it was $60 and 15 minutes of work. I won't name names.

My needs are simple. I'm a one man app developer with three sources of revenue: Apple, Google, and maybe an ad agency. One share class, federal corp, GST number. I figured it should be cheaper than it is. Regardless, I'm going with the lawyer after all. It's a one time expense and I could use a lawyer to vet possible future contracts.
Deal Addict
User avatar
Aug 18, 2008
2648 posts
568 upvotes
Ottawa
NewJohnny wrote:
Apr 29th, 2018 1:30 pm
I looked around some more and I see it's a reasonable figure. My previous expectations were based on jokers here on RFD saying it was $60 and 15 minutes of work. I won't name names.

My needs are simple. I'm a one man app developer with three sources of revenue: Apple, Google, and maybe an ad agency. One share class, federal corp, GST number. I figured it should be cheaper than it is. Regardless, I'm going with the lawyer after all. It's a one time expense and I could use a lawyer to vet possible future contracts.
$60 sounds more like a sole-proprietorship registration, not a corporation.
Deal Guru
User avatar
May 9, 2006
11032 posts
1717 upvotes
NewJohnny wrote:
Apr 29th, 2018 1:30 pm
I looked around some more and I see it's a reasonable figure. My previous expectations were based on jokers here on RFD saying it was $60 and 15 minutes of work. I won't name names.

My needs are simple. I'm a one man app developer with three sources of revenue: Apple, Google, and maybe an ad agency. One share class, federal corp, GST number. I figured it should be cheaper than it is. Regardless, I'm going with the lawyer after all. It's a one time expense and I could use a lawyer to vet possible future contracts.

Just read up on how to do it. It's really simple. All the information is available in Google searches. Even if you do a search in RFD, you'll find many posts saying that you still need to pay the $400 fee.

I did it about 10 years ago and took no time at all. Same situation as yours but replace app dev for analytics. I also made one to use with my friends with a name search and that wasn't all that much harder.
[OP]
Newbie
Nov 2, 2010
9 posts
Vancouver
I've been doing my own taxes as a sole proprietor for a long time but incorporating is new to me. When I Google "self incorporate" the majority of results are "don't do it, you will screw it up" and "not worth it". Not just forum posts but articles from online magazines and business development sites too. I just assumed, based on this info, that it is a complex process.
Newbie
Aug 8, 2017
38 posts
9 upvotes
If it was really so simple and risk free, lawyers wouldn't charge $2000, they'd be dropping the price to entice you so they don't miss out on a quick buck.
Deal Addict
May 12, 2014
1877 posts
1294 upvotes
Montreal
A lawyer will help you consider whether or not other share classes would be useful for the future (do you have a wife? Kids? Potential future partners?)

The lawyer may also look at your overall situation and make other recommendations about your incorporation.
[OP]
Newbie
Nov 2, 2010
9 posts
Vancouver
1000islands wrote:
May 2nd, 2018 10:10 pm
DIY online...costed me $200, straightforward stuff
That's just not true. Government fees alone are over $200. Show a cost breakdown.

Anyways, I ended up going with a lawyer after all. Federal incorporation with provincial registration and expedited name search was $1900. Now it's done and I can move on to other things. Thanks for talking me down.

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