Thinking of incorporating your startup business? Think again.
Bruce_C49
Member Posts: 38
This post is intended for Canadian entrepreneurs. Too many new entrepreneurs think that the very act of incorporating frees them of all liabilities. It does not relieve them of business liabilities to the CRA nor a bank with whom they have a business loan.
Incorporation online is quite easy and far more affordable than incorporating through a lawyer. Yet, how much common stock will the company issue? What classes? Why is this important?
Planning on setting up a corporation with a (non-family) partner? Do you have a business "pre-nup?" Will you incorporate federally or provincially? If you incorporate federally you have to submit an annual report to Industry Canada.
The cost of preparing a T2 return and Notice to Reader year end financial statement may astound you.
Incorporation is a natural evolution. Get your proprietorship successful first and then incorporate.