| A | B |
|---|
| Business Corporations Act (Ontario) | Statute that governs Ontario corporations |
| Canada Business Corporations Act | Act that governs federal corporations |
| Not-For-Profit Corporations Act | Act that governs non-profit corporations |
| Limited Liability | Shareholders can only lose what they invest in the corporation |
| "Corporate veil" | Can be lifted if there is fraudulent or criminal activity |
| Perpetual Existence | Corporaton can only 'die' when it is dissolved or wound up |
| Estate Freeze | Use of corporation by a family to minimize taxes on death |
| Income splitting | By incorporating and paying out taxes to husband and wife shareholders total tax burden reduced |
| Disadvantages of Incorporation | Start up cost, separate tax return, amount of regulation |
| Public corporation | Offers shares to public |
| Private corporation | Non-offering corporation |
| CCPC | Canadian Controlled Private Corporation |
| Authorized Capital | Amount of shares corp permitted to issued by its articles |
| Issued Capital | Amount of shares a corporaiton has actually issued/sold |
| Shareholder | Person who owns shares in a corporation |
| Share certificate | Physcial evidence that you own a share |
| Share | Must be fully paid for when issued |
| Director | Elected by shareholders to manage corporation |
| Officer | Appointed by directors to oversee day to day work |
| Articles of Incorporation | Document filed to create the corporation |
