At what point did you incorporate?

[DeletedUser394]

I'm leaning towards just incorporating now, because my end game involves incorporating anyway.

From the research I've done so far, it seems it'll be around $1,000 to incorporate and file all the forms, etc which is reasonable.

I'm having a hard time finding out what the yearly maintenance/filing costs are, but assuming it's sub $1,000 or thereabouts then I may as well just incorporate now.

As it stands, I have a sole proprietorship operating at a profit (nothing crazy, no millions yet haha). The problem with this is that I have all the liability and profits are treated as income on my tax return.

I'll be in university for the next few years (2014-2018) (for free) so my expenses will be quite low, and I want to incorporate so that I pay myself below the basic personal amount (to avoid personal income taxes) among other things. My corporate tax rate will be around 11%.

Just curious at what point y'all incorporated (if at all) your business, and how much it costs you in filing fees/legal fees per year?

I know the fees vary but my operation is pretty simple and straightforward at this point.

Gracias

 

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[The-J]

I incorporated before I had a customer, or even a way to get one. Now I'm the proprietor of a failed business.

I owe $250 yearly tax currently. I did it myself with me as my own registered agent. It cost me $90. The business license cost me around $50. The employer identification number (dunno if they have it in Canada) was free. I incorporated in Delaware as a resident.

Does not being incorporated present a barrier to any sort of cashflow?

 

[DeletedUser394]

Not being incorporated means that all of my profit is taxed as personal income. I have a 29% tax rate on income right now. Whereas if I was incorporated I would pay 11% corporate tax, and zero personal income tax because I would keep my income below the basic personal amount, which I think is around $10,000 right now.

My company would own my assets (car, etc)

 

[Mr.Dietsch]

You just need to plug the numbers and weigh the odds of 11% corporate tax +$1000/yr vs 29% income tax. My bet is that you would save a lot more money becoming incorporated. I bet an LLC would be fine.

 

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[DeletedUser2]

Rich Kid your in Canada right?

Different. than US.

So I would incorporate. We have a Canadian company as well, yearly costs not that much, but Ill have to look up.
we paid 1500 to have an atty file everything for us. and get it done.
easy.



Let me google that for you

 

[DeletedUser394]

Rich Kid your in Canada right?

Different. than US.

So I would incorporate. We have a Canadian company as well, yearly costs not that much, but Ill have to look up.
we paid 1500 to have an atty file everything for us. and get it done.
easy.



Let me google that for you

Yep currently residing in Canadia

Eventually want to move the company offshore, as well as move myself to another country but for now this seems like the best bet considering I'll be around here for at least the next 5 years with limited expenses.

 

[Kak]

I incorporated before I had anything going on at all. I picked a vague name and have used the same entity through multiple failures. This particular entity ks getting another go right now.

Currently own 3 LLCs.

 

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