Incorporating in Canada | Should You Incorporate Your Business In Canada?
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- Äas pĆidĂĄn 6. 09. 2024
- The video you have been waiting for - a Canadian-specific discussion about whether you should incorporate your business.
We cover the liability and tax reasons for incorporation.
What revenue level makes sense to incorporate?
What are the advantages to incorporating?
When is it not a good idea to incorporate?
How much does it cost to incorporate?
How do you incorporate? Check out our article here: www.avalonacco...
You can also incorporate online:
Ownr (affiliate link): get.ownr.co/av...
Law Depot: www.lawdepot.ca/
Let us know your incorporation questions below!
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If you sell products, what would you say is more protective:
1. Sole proprietor with product liability
2. Incorporated with no product liability
"It's a person under the law when you incorporate..." - that analogy was pretty good. Watched this video a couple times. Thanks for the 'couch talk'đđđœ. U got a new subscriber!
This was SO informative! I'm really happy that I found this - I feel clear and finally understand whether or not I'm ready to incorporate :). Thanks for all the info!
Glad it was helpful. Tell your friends!
Till my next windfall whenever that happens I do mean whenever
Best video on the subject that I've seen yet!
Thanks Adam!
This is extremely helpful. my industry is majority US based, so I'm constantly overflooded with American information. This helped me figure out what I need to do because I live in Canada.
Amazing to hear! Tell your (Canadian) friends đ!
That's what I'm doing. I'm thinking of going to the company events and have a Canadian booth or hand out Canadian resources. So this is very helpful đđ@@AvalonAccounting
THE best and clearest video on this subject matter - thank you!
Wow, thank you!
Thank you! Your explanation helped me to simply understand that now is not the time to incorporate.
Glad it was helpful!
Very helpful. I knew all this from previous business classes but it was a great refresher!
Very helpful! Do you have a video specifically about if Canadian CZcamsrs should incorporate or accounting tips for new youtubers to set up their culture successfully? Should u have separate bank accts.
We don't have a specific video for that, but the same ideas apply for CZcamsrs! Incorporating will still be dependent on where you see your channel going in the future and how much revenue it's generating (and legal liability, of course). Regardless, you should definitely keep a separate bank account and credit card for your CZcams revenue and expenses.
@@AvalonAccounting thank you I appreciate your response!
@daniellebee9 Yes, Canadian CZcamsrs should consider incorporating their channels as a business entity. This can provide numerous benefits such as liability protection, tax advantages, and the ability to establish credit and build credibility with potential partners and sponsors. Additionally, incorporation can help separate personal assets from business assets, which is especially important for creators who rely on their CZcams channels as a source of income.
I recently learned that a corporation is given its own credit score in Canada, and this sounds appealing since sometimes peoples person credit scores aren't the best, how often does this come up when trying to borrow money, and will they always look at your personal credit score anyway?
That's an interesting question! While having a good credit score for your corporation can certainly be helpful, lenders may still look at the personal credit scores of the business owners or guarantors when making lending decisions. It ultimately depends on the lender and their specific requirements. However, having a strong business credit score can definitely improve your chances of obtaining financing for your corporation.
Joe, Thanks for vid !!
Can you discuss about Quebec incorp
How to bill Quebec clients with Ontario corp
Very useful - thanks!
Youâre welcome! Thanks for watching!
Very informative! Thanks!
Very informative video, my son is a new real estate agent, do you recommend that he incorporate or just be sole proprietor, your reply is appreciated
Great content thank you
You're welcome! Glad it was useful.
Hi -how & where do I register for a Sole Proprietorship in Ontario? Iâm new at this.
Also can I do this with a company called ownr? Thanks!
Hi Sia - yea Ownr is a good place to start. You may also be able to register it directly through the Government of Ontario website: www.ontario.ca/page/business/start/register-your-business-online
@@AvalonAccounting thank youđ
Really helpful!!
Thank you .
Video is more than amazing. Extensive explanation in simple style. Thanks a lot for the video. :-)
Thanks! That means a lot!
Cud u plz help me with starting a business on a reserve in canada. What is the best way to go Bout it cuz business conducted on the reservation is not taxed. Any info wud help! Thank u love ur channel!
Hi Collin, really enjoyed your channel...I found it extremely helpful as these are the questions almost every small business owner has. May I please ask if you have recommendation for small business bank account as I find it a maze to go through the options available. Thanks in advance. Sagun
Thanks! It's really hard to give a blanket recommendation there, Sagun. We have found credit unions to offer really great personalized service, but big banks offer more in the way growth opportunity.
We bank with CIBC, but the big banks tend to be pretty similar for small businesses.
I see Avalon is now in BC, is avalon is still doing work for Ontario residents ?
Hi! Is there a rule of thumb about the level of income at which it makes sense to incorporate (and to create a holding company)?
This varies a bit depending on the situation, but some people say $150K, others say $250K. I like to think of it as the point where you have more income than you know what to do with. You have maxed RRSPs, TFSAs and any other tax shelters available to you and are forced to take income that you don't need and pay high marginal tax rates.
Of course, if you are building a business to sell one day and are fairly certain about its success you may want to incorporate earlier than this.
For a holding company, I don't think there's an income number - it's more multi-factored than that. Hope this helps!
I am just starting a new activewear business by myself. Do I need to incorporate?
Could you provide contract software development to a US entity with a Sole proprietorship?
Hi your link to how to incorporate is not working....by the way thanks for your videos....been following you here on YT.
Thanks for watching and checking the link for us! The link should work now if you want to check out that article.
www.avalonaccounting.ca/blog/how-to-incorporate-your-business
@@AvalonAccounting thank you⊠I will continue in a bit and will also watch your other videos. I just lost lots of money for not knowing more about taxesâŠ
Hi there! Is the lifetime tax exemption ($180K savings) eligible only once per person ...per lifetime?
Yes, there's lifetime amount but it doesn't have to be used all at once.
Hi Joe, just curious about the 900k tax free Capital gains program. Does this also apply to an existing business that I may purchase and are you able to walk me through an example if it does? thanks for the great content!
Hi Noel - essentially, if you buy the shares of a business today for $100,000 and grow that business and sell those shares for $1,000,000 - you would be able to do that tax free. Of course, there are quite a few technicalities to understand prior to selling, but that's the gist of it! Make sure to speak to an accountant or tax lawyer to set it up properly!
If I was planning to become resident of another country in the future, but am running a Canadian business now as a Canadian citizen/resident, and wanted that business to persist business as usual in Canada, earning Canadian dollars to Canadian accounts, regardless of my personal residency status, would incorporation be the better route? And if I was the only shareholder, but eventually moved out of Canada, could said corporation continue business as usual, if its only owner (me) becomes some sort of non resident (of Canada)? Or like, would I need to enlist a second, Canadian resident shareholder or something for the business to persist in Canada, while I also draw some salary or dividends from it as a non resident?
2:00 lifetime capital gains exemption
Very informative. Does this mean that if I want to create a startup I can deduct expenses for the startup from the earnings of my main job? At least until I incorporate the business?
I don't think that's correct. You can't deduct expenses from a different income stream. That said, tracking your expenses - especially HST/GST - helps bring down your burden at tax time.
I recently incorporated after 11 years in business as a sole proprietor. Will I continue to use the same HST number I used for my previous tax years when filing taxes, or does this change to my new corporate number? Thank you.
You'll need a new HST number - you should have received a Business Number when you incorporated and your HST number will be a program account under this number.
How can we register for incoperation?
how much does your company charge as i started my corporate business but no acct. yet
Hi Leandro! Shoot us an email hello@avalonaccounting.ca and we can set up a time to talk.
iS INCORPORATING ur business a LLC?
In Canada there are no LLC's, in the US they use LLC, S Corp, or C Corp. It's just called a corporation, the corporate extension is either LTD, INC, or Corp, and the extension you choose has 0 effect on how the corporation is handled. Whether you choose LTD, INC, or Corp, there's no difference it's just personal preference.
The LLC arrangement for business ownership is not offered in Canada
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If your allergic to paperwork you shouldn't have graduated from high school. Instead of business, I recommend a career in Fortnite instead.
Since Trudeau gave himself the right to cease our corporate account if we do not agree with his "views", maybe should we just incorporate in another country.