Incorporating federally in Canada DIY

[Clorets90]

Hello, everyone, I would like to incorporate a business to sell goods and offer service online (Selling on Amazon & eBay) and offer in-person services. I still have few questions to be asked and I'm not sure about what to do.

1- I do not know how much my business would generate income as I read (30K or lower per year no need to register for GST/HST) but I do not know at the moment if it will be successful.
2-Since I will be incorporating federally should I get a business license from service Ontario?
3-I live in an apartment so what address I should use for business?
4-I am thinking of a virtual office to start a business.
5-I will be buying stuff from China, the US and Canada and selling them again.
6- I am currently on EI due to COVID-19. should I register the business under my name or my brother's name or does not matter?
7- How I will be getting the money out of the company bank account to be used personally?
8- Will it affects the person if he is getting Child benefit & provincial benefits if we incorporate his name?

I called many accountants they charge too much for something that I can ask here for free I asked an accountant he asked 700 CAD he was the lowest for only registering a company.
with little time spent online reading the government website, almost everything is available for free so why paying that much while the charge would be 220 CAD I found 2 YouTube videos do everything from A-Z but I do miss some info so I am asking here.

Thanks in advance

 

[Copingwithlife]

Hello, everyone, I would like to incorporate a business to sell goods and offer service online (Selling on Amazon & eBay) and offer in-person services. I still have few questions to be asked and I'm not sure about what to do.

1- I do not know how much my business would generate income as I read (30K or lower per year no need to register for GST/HST) but I do not know at the moment if it will be successful.
2-Since I will be incorporating federally should I get a business license from service Ontario?
3-I live in an apartment so what address I should use for business?
4-I am thinking of a virtual office to start a business.
5-I will be buying stuff from China, the US and Canada and selling them again.
6- I am currently on EI due to COVID-19. should I register the business under my name or my brother's name or does not matter?
7- How I will be getting the money out of the company bank account to be used personally?
8- Will it affects the person if he is getting Child benefit & provincial benefits if we incorporate his name?

I called many accountants they charge too much for something that I can ask here for free I asked an accountant he asked 700 CAD he was the lowest for only registering a company.
with little time spent online reading the government website, almost everything is available for free so why paying that much while the charge would be 220 CAD I found 2 YouTube videos do everything from A-Z but I do miss some info so I am asking here.

Thanks in advance

1- Registering for a GST/HST account . The 30k Mark is over four rolling calendar quarters, not a calendar year. So if you elect to register prior to hitting this mark, it’s a voluntary registration. You’d then charge the tax on your sales from the date of registration,and send to the CRA. If you want to wait, you’d keep track of your sales per quarter, then once you get close to the $30k mark, you’d call and register . If you do not register once you hit the $30k limit, the Government will register you , and you’ll be responsible for the GST regardless whether you collected it or not . Not knowing the rules is not a reason not to register or collect. If you register you’re allowed to claim the hst gst paid on eligible expenses to offset the gst hst collected on your sales. If you’re not registered you’re not allowed to do this
Once registered you must stay registered for a minimum of one year
2-Yes you’d still register with the province to conduct business
3-Your apartments address. Note if you register for a GST account an address where the business is done is mandatory
4-That’s fine
5-If you’re importing goods to sell in conjunction with your business you’ll need a import /export account for your business. The account designation is RM, thru the CRA
6-It’s your business , you’d be the owner. It would be in your name . You can have multiple owners on a incorporation, however ownerships constitutes responsibility. Choose owners wisely
7-if it incorporated, you can draw a pay from the corporation, thru either a payroll account (RP), or draw a dividend , issue a T5 slip . You’d need a RP account for payroll , RZ account for dividends
Payroll & Dividends are taxed different . Dividends are taxed typically at a lower rate , but will not give you any RRSP deduction limit to use , and no CPP for retirement. If you draw a pay, then you’d have to issue a T4 at the end of the year for the RP account, and the corresponding filing for the RZ account
Note , owners are typically not eligible for EI only in special circumstances. For that you’d register with the ESDC. Those are special EI benefits , not regular benefits
8-No. The legal entity is the company
Doesn’t matter if the owner is receiving credits from the Government
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4022.html

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html

adding , many individuals incorporate when they have not done their homework. You mentioned the cost . If you incorporate you have to file a T2 corporation income tax return , EVERY fiscal year . That alone can cost around $800-1000 thru an accountant . As well, this is expected even if you have no business activity to report , until you dissolve the corporation, which will cost again . Many operate business as sole Proprietors, or as partnerships prior to incorporating. Explore these options PRIOR to incorporating. Some individuals incorporate, the business doesn’t work out, then just walk away . The incorporation is a legal entity , and as such compliance is mandatory when filing T2’s, GST returns, Payroll , regardless if the business is active or not . If returns are not filed , assessments, enforcement can follow
Good luck in your venture

 

[Clorets90]

Thank you very much for your time to guide and answer all my questions.
I have some more questions to be clear on what I am doing:
What business licence I should apply for in Ontario? for selling on eBay & Amazon and offering services?
How I can apply for the license to conduct business? (Ontario)
As per the video that I watched for incorporating federally online registering extra province in my case (Ontario) No fee it is free.

When it is required to have import & export account once I get every week a big shipment like 5~10 kg or I should register for that when I will have in the future 20~30 KG per one shipment.

My lease agreement mentions (no business conduct should only be used for living purposes) can I still use the apartment address as a home office and work office will be (virtual office address ) or I MUST find a virtual office that accepts to use the address provided as a corporation.
Thank you!

 

[Copingwithlife]

Thank you very much for your time to guide and answer all my questions.
I have some more questions to be clear on what I am doing:
What business licence I should apply for in Ontario? for selling on eBay & Amazon and offering services?
How I can apply for the license to conduct business? (Ontario)
As per the video that I watched for incorporating federally online registering extra province in my case (Ontario) No fee it is free.

When it is required to have import & export account once I get every week a big shipment like 5~10 kg or I should register for that when I will have in the future 20~30 KG per one shipment.

My lease agreement mentions (no business conduct should only be used for living purposes) can I still use the apartment address as a home office and work office will be (virtual office address ) or I MUST find a virtual office that accepts to use the address provided as a corporation.
Thank you!

If you incorporate Federally, there’s a link where you can also register to conduct business in Ontario .
if you’re a sole prop/partnership then it would be a Master Business License thru Service Ontario. Those have to be renewed I believe every five years
If you’re importing goods connected to your business, there’s no limit in the size of the shipment when required to register for a RM account. Rule is , if it’s goods connected to the business, you require a RM account . The CBSA will not release the goods if you’re not registered
That I don’t know regarding the conditions on your lease. When you incorporate you’ll have to have an address, that’s mandatory. That’ll be the address that’s on filed returns etc
With the CRA, you can have three addresses on the account
- Mailing
- Books /Records address
- Physical address of the business
If you have a warehouse where you’d store the goods that would serve as the physical location
Mailing is the address the incorporating body and the Government would have on file
Books - Records is where the records of the business are stored . That could be an accountants office if you choose to use one
You can have all three , or just one which would be mailing , which would serve the purpose of the other two

 

[Clorets90]

Thank you, for the information that you provided me. some of my friends are saying incorporate provincially the tax filing is cheaper is this correct?

 

[Copingwithlife]

Thank you, for the information that you provided me. some of my friends are saying incorporate provincially the tax filing is cheaper is this correct?

No difference. Where you incorporate, Federally or Provincially, makes no difference on what you have to file with the Feds (CRA)

 

[Clorets90]

If you incorporate Federally, there’s a link where you can also register to conduct business in Ontario .

Could you please show/guide me through this? like a video on YouTube or a screenshot please?

 

[Copingwithlife]

Could you please show/guide me through this? like a video on YouTube or a screenshot please?

https://corporationscanada.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs06642.html#toc-06

Go down to Step 5

Everything I’ve mentioned is online or in Government publications , I highly suggest you familiarize yourself with them or higher a professional

 

[Clorets90]

https://corporationscanada.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs06642.html#toc-06

Go down to Step 5

Everything I’ve mentioned is online or in Government publications , I highly suggest you familiarize yourself with them or higher a professional

Hiring a professional is costing too much for only clicking on certain links that are for free and you guided me they ask so much for a very small work! plus sharing personal information & exposing ideas (to be clear I do not like to share anything but I like to learn from people (pay them if needed) and do it myself)...
I'm reading too much about this and found out that a CPA charges 65$ only to do nuance search haha! it's only a few clicks for 12.18 CAD and for registration 700 (including the 200) plus tax so I'm paying about 500 for something I can do or get your help here for free!

I wish if you could just do a small video for incorporating and registering with Service Ontario as example and hide personal details! (People in YouTube does it for Solepropritor)
Thank you

 

[canuck78]

Hiring a professional is costing too much for only clicking on certain links that are for free and you guided me they ask so much for a very small work! plus sharing personal information & exposing ideas (to be clear I do not like to share anything but I like to learn from people (pay them if needed) and do it myself)...
I'm reading too much about this and found out that a CPA charges 65$ only to do nuance search haha! it's only a few clicks for 12.18 CAD and for registration 700 (including the 200) plus tax so I'm paying about 500 for something I can do or get your help here for free!

I wish if you could just do a small video for incorporating and registering with Service Ontario as example and hide personal details! (People in YouTube does it for Solepropritor)
Thank you

You need to do actual reading and not just watching youtube videos. You really should invest in an accountant to provide you some guidance since you seem to lack a lot of the fundamentals. Perhaps you can find a small business mentor. That is what you really need. Maybe you can find one through a community organization or religious group. If your landlord does not permit you from operating a business out of your apartment this is something you will have to clarify and approach your landlord about changing that clause in your lease. Given that you are claiming EI this will eventually impact your current EI payments depending on whether you are actually pursuing this or just research and thinking about this. To receive EI you have to be looking for employment. Based on your previous posts funds you don’t have a lot of savings. Have you been investigating whether this is a good time to set up your business and how much more expensive and how difficult will it be to currently get goods out of Asia. Does it make since to import things from the US given the exchange rate? Are you able to secure a loan, if that is what you need, to get the money to start your business?

 

[Clorets90]

You need to do actual reading and not just watching youtube videos. You really should invest in an accountant to provide you some guidance since you seem to lack a lot of the fundamentals. Perhaps you can find a small business mentor. That is what you really need. Maybe you can find one through a community organization or religious group. If your landlord does not permit you from operating a business out of your apartment this is something you will have to clarify and approach your landlord about changing that clause in your lease. Given that you are claiming EI this will eventually impact your current EI payments depending on whether you are actually pursuing this or just research and thinking about this. To receive EI you have to be looking for employment. Based on your previous posts funds you don’t have a lot of savings. Have you been investigating whether this is a good time to set up your business and how much more expensive and how difficult will it be to currently get goods out of Asia. Does it make since to import things from the US given the exchange rate? Are you able to secure a loan, if that is what you need, to get the money to start your business?

Thank you for your reply my point of this is investing in learning from my time that I'm staying at home, I'm a mid-class person but many things in our lives if we look closely we will realize that they are based on very simple ideas. I will not go for loans which is the worst thing that a man can do ( in such case getting a loan is investing in the darkness). I'm not going to invest 50K nor 10K I will start with 500 CAD and a bit of research, reading tax guides having an address eBay & Amazon shipping companies with insurance are there ready to welcome new people. You will also help I have no doubt if you know something you will share and help (I appreciate that I'm always waiting for you to comment as most of the time your opinion is right).

I will start from scratch I spent my life increasing other people fortune with my own experience and when the company/ employer finds someone cheaper than me they will simply hire the other person and push on me. I feel disgusted every day in addition to all this as an employee I can't choose my own hours of rest "as the business needs me" wait the whole year to get 1$ salary increase why not buying a bunch of stuff resell them and get paid without a headache! I will make something similar to what I was gaining without all this insult being always the "small employee". I will simply reverse the equation or do what my employers were doing buying stuff resell them and done.

For the importing problem if at normal times takes 5 days then I will wait 30 days not a problem I remember I bought few things from amazon last December for 52$ today I went to buy it again the price now is 230! I do not know why but I will stop working for others for a fraction of the profit. if I'm able to make 1 sale a day for a certain product then I made all my day without working for someone else I no longer want to be an employee again that's my goal.
COVID-19 is not going to last forever scientists will find a cure for it sooner or later.
I think it is simple there will be profit, cost and tax I will keep everyday cost & profit in a small envelope with a small note and at the end slowly will make everything clear (Only for incorporating my personal CPA that does my taxes he asked for 1250 CAD he is making out of it 1000 for few clicks! ) while all that you need is 200$ Plus Nuans 13.80 and 30 minutes of your free time and put your own info that's all.

That's my own opinion I might be wrong but worth a try!

 

[canuck78]

Thank you for your reply my point of this is investing in learning from my time that I'm staying at home, I'm a mid-class person but many things in our lives if we look closely we will realize that they are based on very simple ideas. I will not go for loans which is the worst thing that a man can do ( in such case getting a loan is investing in the darkness). I'm not going to invest 50K nor 10K I will start with 500 CAD and a bit of research, reading tax guides having an address eBay & Amazon shipping companies with insurance are there ready to welcome new people. You will also help I have no doubt if you know something you will share and help (I appreciate that I'm always waiting for you to comment as most of the time your opinion is right).

I will start from scratch I spent my life increasing other people fortune with my own experience and when the company/ employer finds someone cheaper than me they will simply hire the other person and push on me. I feel disgusted every day in addition to all this as an employee I can't choose my own hours of rest "as the business needs me" wait the whole year to get 1$ salary increase why not buying a bunch of stuff resell them and get paid without a headache! I will make something similar to what I was gaining without all this insult being always the "small employee". I will simply reverse the equation or do what my employers were doing buying stuff resell them and done.

For the importing problem if at normal times takes 5 days then I will wait 30 days not a problem I remember I bought few things from amazon last December for 52$ today I went to buy it again the price now is 230! I do not know why but I will stop working for others for a fraction of the profit. if I'm able to make 1 sale a day for a certain product then I made all my day without working for someone else I no longer want to be an employee again that's my goal.
COVID-19 is not going to last forever scientists will find a cure for it sooner or later.
I think it is simple there will be profit, cost and tax I will keep everyday cost & profit in a small envelope with a small note and at the end slowly will make everything clear (Only for incorporating my personal CPA that does my taxes he asked for 1250 CAD he is making out of it 1000 for few clicks! ) while all that you need is 200$ Plus Nuans 13.80 and 30 minutes of your free time and put your own info that's all.

That's my own opinion I might be wrong but worth a try!

Based on your previous questions about everything in Canada you lack understanding in many things. If claiming EI you must stop claiming if you start working for yourself and no longer plan on seeking employment.

 

[Clorets90]

Based on your previous questions about everything in Canada you lack understanding in many things. If claiming EI you must stop claiming if you start working for yourself and no longer plan on seeking employment.

Thank you for that information I thought also to be a problem but I wanted to get other opinions Thank you!