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Question for Canadian warriors who formed a corporation with Corporations

by Chris Thompson
3 replies
Hi fellow Canadians,

**** DISCLAIMER ******
This is not a thread about legal advice. It is about sharing what you've done and why.

*********************

I'm doing some research for my own benefit and as part of a mastermind group that I'm in.

When it comes to ONLINE businesses such as what we all are involved with, what have you done to form a corp and why?

1) Provincial or Federal corp?
2) How many members of the board of directors (you can have just one, yourself, but not often)

3) How have you structured the share holdings (i.e. 50% to you, 50% to a spouse for income splitting)

Any other advice you'd want to give to anyone who is looking to form their corp?

... I HAVE to believe someone has an ebook on this topic but for the life of me I can't find one.

Perhaps a ripe opportunity for somebody to run with. The only businesses advertising on Google are the ones that charge you $99 to incorporate you (plus gov't fees)
#canadian #corporation #corporations #formed #question #warriors
  • Profile picture of the author Chris Thompson
    Update on this (since I've seen no replies yet)

    Most people seem to do a single share structure with a single owner, and a single director of the corporation.

    Then, if you want to protect yourself you put all assets in your wife's name and you own your corp 100%. If anyone ever sues you, you have no assets outside of the company (yes, technically a corp protects you but lots of people believe that liability can still extend to the person, beyond the corp).

    Any thoughts from Canucks?
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  • Profile picture of the author kcom
    Before becoming a corporation, I hope that you are making a decent income.
    I would say that it is not worth it for less than 50k a year. Why? Acctng fees alone to file the T2 's and financial statements are likely going to cost $3k. Corporations are separate entities but as you stated can still carry personal liabilities. My knowledge is not based on my own corporation but expertise in the tax of corps. PM for further info.
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  • Profile picture of the author Caleb Spilchen
    From what my Lawyer told my Dad, the costs for Federal Incorporation are around $3xx. That's after you pay for everything. You can be a registered business, for around $60 in Ontario.

    I was told however, by Rev people, that if you make 30k/annually that you then have to pass tax of 13% onto your customers. I wonder whether that applies to everyone or just people who are in Ontario.

    I'm waiting for my Tax person to tell me whether to incorporate. The only reason that I would, is because I am a liability for my Parents (being under 18), and I wouldn't want them to ever be sued, even if I didn't do do something wrong. You never know what will happen. So I'm in the process of incorporating, it's a matter of taxes.

    Caleb
    Signature

    Canadian Expat Living in Medellin, Colombia

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