What is the process for going Ltd?

[Uzo]

Its just a single person operation for now, might put the wife's name down in the future but for now just moi...

I want to know how does one get a Ltd. status for a business (I have not registered that business yet) and what the fees would be in a ballpark.

Basically I have a lot of properties and want to move them into a #$%#$% Ltd.


Cheers.

 

[fuji]

Its just a single person operation for now, might put the wife's name down in the future but for now just moi...

I want to know how does one get a Ltd. status for a business (I have not registered that business yet) and what the fees would be in a ballpark.

Basically I have a lot of properties and want to move them into a #$%#$% Ltd.


Cheers.

Incorporating is cheap. It'll cost you a few hundred bucks. You need to do a name search to make sure no-one else is using your name, and then incorporate either at the Ontario or the Federal level.

The real cost is not incorporating, it is the tax burden you'll have forever more after you incorporate. You'll have to have financial statements prepared every year, and multiple corporate tax returns filed (separate returns to the province, the feds., the GST people). Even for a simple corp. with no activity it'll cost you around $500/year to file the returns. If you actually do a bunch of business, figure it'll cost you minimum $1000-1500 to file your return.

 

[Uzo]

Thanks for the information!

Where would I go to get this name registered in the GTA and are there forms online I can print off and fill out?

 

[Uzo]

crap, that was what I was trying to avoid...lawyer fees...but I guess its a situation where I should be safe from the start.

I appreciate the advice.

 

[Meister]

Definitely use a lawyer. You may also want to think about:

- Are you trying to conduct business in that company? If so you may want to think about having an operating company A that you use to buy and sell and expense. You would then set up a holding company B where you have all your assets in and nothing else. This way any legal problems that may arise would occur with company A and your assets in B can't be touched.

- If you have to add your wife make sure you have a contract in place to divide up assets in case things go sour.

 

[ham2004]

You don't need a lawyer

Ontario is the easiest province in Canada to incorporate in. Just drop by 396 University Avenue, and fill out the simple forms. (they will help you) and for $360.00) you are incorporated.

Next drop by the GST registration office in your area, check the blue pages, give them the first page of your incorporation documents, and file out the forms.

File both Provincial and Fedreal income taxes on time (most accountants in the GTA charge between 500.00 and 750.00 to file the proper returns, if they are not complicated)

Talk to an accountant, about moving assets around. Most will be really reasonable in fees.

 

[great bear]

If your serious about getting Limited ask Goober he is very limited.

 

[The Brus]

You are getting bits and pieces about incorporating. Firstly, before you incorporate, make sure your net income is $75000 or more. Otherwise, incorporating will not be cost-effective for you. This is what I tell my clients.

The cost of incorporating is about $1500-2500 depending on the complexity of the company. Do not do this yourself. When clients see me with self-incorporations, it shows and there are lots of holes to fill thereafter. See a competent lawyer for this work.

Your accounting and tax filings greatly increase. In order to take advantage of the benefits of your incorporation, you have to see a chartered accountant. The cost of filing your year-end work and the respective tax returns will start from $2000. If you require a review engagement for financing purposes, this will increase substantially. An audited statement is something that you don't even want to think about.

Incorporating is not something to fliply enter into. It takes good technical and professional advice to consider books, rollovers and other minutiae. It is not cheap. If you deign to close your business, the tax authorities will hound you, threaten and cajole you into continuing your filings unless you go through the dissolution process. Hence, incorporation is like a marriage. You marry the business.