When starting your business, it's important to deliberate on tax, financial and structural considerations. At Shajani LLP, we'll walk you through this process while considering your individual circumstances.
One of the first questions you may have is on the advantages and costs of incorporating. As your Professional Accountants, we would be pleased to discuss the following factors with you.
Criteria for Incorporation
Whether you should incorporate depends on a variety of factors, including whether:
- your business has sufficient revenues or profits to justify the costs associated with corporations;
- there are any tax savings for you by incorporating; and
- the inherent risk in your business.
Tips on Incorporation
Before you incorporate your business, consider the following:
1. Share Structure
Do you require separate classes of shares for each shareholder? Should you add your spouse as a shareholder for income-splitting purposes? We can help you answer these questions through sound, professional advice.
2. Jurisdiction of Incorporation
It may be more advantageous for your business to incorporate federally or provincially. We can identify which jurisdiction is appropriate for your business to incorporate in.
3. Transfer of Assets
If you've been operating as a sole proprietorship for some time and now want to incorporate, you may be required to pay income tax on the transfer of your assets, including goodwill, to your newly formed corporation. We can help you escape tax altogether upon incorporation, by filing an election with the Canada Revenue Agency (CRA), pursuant to Section 85 of the Income Tax Act.
4. Name Selection
You must select a name for your new corporation that is not already in use. To do this you must perform a Nuans Search Report. We'll take care of these details for you.
5. Registration with Canada Revenue Agency
Once you've been registered with the provincial authorities, you'll require a business number from the CRA in order to charge and file GST, payroll taxes and corporate tax returns. We also take care of these details for you.
6. Ongoing Registration and Maintenance
Once you've registered your company, there are ongoing regulatory requirements such as filing annual returns and updating your minute book. Again, these are details we can handle, if you choose.