Incorporating
by Not an Accountant
(Ontario)
Sometimes You Need Tax Advice
Hello, and thank you for offering this opportunity to ask and read through various bookkeeping and accounting questions.
We're a family run operation (2 parties) looking to incorporate. Part of our work is purchasing stock and part is selling. The bulk of our sales occur in online locations and to individuals in the USA; a minority of sales are Canadian (spread out relatively equally across the Provinces) and a minority of sales are International (spread out across different Countries). The bulk of purchases occur in Ontario (our home base) with a minority from International (predominately US) locations.
Does it make more sense for us to Incorporate Federally or Provincially? And would it make sense for the selling arm and purchasing arm of the business to be incorporated as separate entities?
Hey, as you have multiple parties and multiple countries involved with your business, you really do need to visit a chartered accountant who can review your particular circumstances including family members and your objectives for incorporating. This is NOT the time to "do it yourself".
There are times when incorporating doesn't actually make sense, particularly with all the recent changes regarding CCPCs.
The Blunt Bean Counter blog has a great article on deciding what business structure is best for your business. He is a CA out of Toronto. Maybe you could post your question at his blog or make an appointment to see him.
Return to Ask a Bookkeeping Question.