I'm thinking of incorporating my small business. Should I incorporate and can you help?
As a Small Business Accountant and Chartered Accountant in Mississauga, we can help you incorporate your new or existing business.
Criteria for Incorporation
Whether you should incorporate depends on a variety of factors, including whether: i) Your business has sufficient revenues or profits to justify the costs associated with corporations; ii) There are any tax savings for you by incorporating; and iii) The inherent risk in your business. As your Small Business Accountant in Mississauga, we would be pleased to discuss these factors with you.
Tips on Incorporation
Before you incorporate your business, you should 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? Our Small Business Accountants in Mississauga can help you answer these questions.
2. Jurisdiction of Incorporation
It may be more advantages for your business to incorporate federally or provincially. As Small Business in Accountants in Mississauga, we can identify which jurisdiction is appropriate for your business to incorporate in.
3. Transfer of Assets
If you have 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. As Small Business Accountants in Mississauga, we can help you avoid tax altogether upon incorporation, by filing an election with the Canada Revenue Agency, 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. As Small Business Accountants in Mississauga, we can point you in the right direction when it comes to choosing a corporate name.
About the author
Allan Madan is a Chartered Accountant, CPA and Tax Expert and enjoys working with business owners, individuals and entrepreneurs.
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