Unlimited Liability Company (ULC)

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

Unlimited liability companies (ULCs) are a highly effective corporate mechanisms for foreign companies (in particular those in the United States) to effectively operate in Canada and repatriate funds invested into the acquisition and/or operation of their Canadian subsidiary. The tax and withholding benefits associated with an unlimited liability company is made possible due to the unlimited liability that its shareholders assume, such that the ULC is treated as a flow-through entity for purposes of the foreign jurisdiction. This in turn has the potential the result in a number of legal advantages when appropriately structured and it is capable of being capitalized upon, including: potential reductions in taxes and withholding, more effective flowing through of losses realized in Canada to foreign shareholders, repatriation of foreign funds utilized by the Canadian ULC, together with having benefits as it pertains to transfer pricing and U.S. controlled foreign corporation rules.

Yet, as with every corporate structure, it needs be properly conceived and implemented so as to optimize your business objectives and maximize profits (hence legally defer and minimize taxes). So whether it shall be an Alberta ULC, a British Columbia ULC or another corporate entity (i.e., a limited corporation), you need to attain the appropriate legal advice and direction to make the optimal business decision.

At Neufeld Legal P.C., we have the experience and insight to assist with making the appropriate decisions when it comes to corporate structuring, whether its as an unlimited liability company or otherwise. Contact us at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or via email at Chris@NeufeldLegal.com.

* Please note that the flat rates associated with a standard incorporation are strictly limited to a basic incorporation (federal, Ontario, Alberta) and does not involve other matters that might be corrollary to the incorporation process or might be atypical for a standard incorporation, including but not limited to related legal or tax advice, engagement with other governmental bodies or professional bodies, licensing, drafting of pertinent business contracts (i.e., shareholders' agreements), negotiations, disputes, financing, coordination with other companies or other legal structuring.

What is a ULC - Unlimited Liability Company?

Click on for more Business Incorporation Videos