What is Digg?2 Comments
- UniqueJewelry, on 08/06/2008, -0/+4There is more to consider than just the money...always check with your lawyer and accountant to make sure it is in your best interest to incorporate.
- AlbinoRaven, on 08/06/2008, -0/+1If you are in Canada, Federal incorporation can be done on the Industry Canada website. It's around $300-$400 depending if you want a name, etc. You can also get incorporated provincially, except Quebec (I think). www.ic.gc.ca
However as the first poster noted, check with a lawyer and an accountant. Corporations mean double tax in Canada. 23% of gross revenues on the corporation, then you get to pay yourself. :p best way to deal with it is hire somebody to lower taxable revenues. An accountant would have told you that though. lol
It makes a huge difference if you are hiring people and dealing with insurance for those folks. Way cheaper than a sole proprietor and much easier to deal with banks to apply for lines of credit so you can pay your people on time to manage cash flow when starting up. Plus deductions are simpler. You hire the CA and they deduct from the corporate income rather than tinkering with personal finances. If you get sued, it's the corporation getting sued, not you because the corporation owns the business rather than you. Plus if you grow large enough you can sell the damn thing without anything more than the transfer of the company. Trust me, running businesses is fun, but after a while it can get stale and you'll want to try something new anyways. I've heard horror stories of people selling their solo proprietor businesses and how sticky it can get if the owner has outstanding personal loans/debts and doesn't mention it.
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