When to close my incorporation?

[ayasahmoud]

Hello,

Need some help on when to close my incorporation.

I am an IT Consultant 'self-incorporated' (B.C. LTD)
The incorporation was created a year back, on exactly 9th of November so my understanding is that the fiscal year should end 9-Nov-2022.
My client has just informed me that my last working day will be 21-Nov-2022 so the last pay check will be received a few days after.

What is the best thing to do here?
1- Dissolve/Close the incorporation on 9-Nov-2022 and end my contract early?
2- Continue working till 21-Nov-2022 and close the incorporation later in Nov or Dec?
3- Leave the incorporation open till end of 2023?

Not sure what's the best option for me

Appreciate your advice!

 

[steaky]

Hello,

Need some help on when to close my incorporation.

I am an IT Consultant 'self-incorporated' (B.C. LTD)
The incorporation was created a year back, on exactly 9th of November so my understanding is that the fiscal year should end 9-Nov-2022.
My client has just informed me that my last working day will be 21-Nov-2022 so the last pay check will be received a few days after.

What is the best thing to do here?
1- Dissolve/Close the incorporation on 9-Nov-2022 and end my contract early?
2- Continue working till 21-Nov-2022 and close the incorporation later in Nov or Dec?
3- Leave the incorporation open till end of 2023?

Not sure what's the best option for me

Appreciate your advice!

Anyone interested to takeover your inc?

 

[ayasahmoud]

Anyone interested to takeover your inc?

No

 

[hamgha]

Hello,

Need some help on when to close my incorporation.

I am an IT Consultant 'self-incorporated' (B.C. LTD)
The incorporation was created a year back, on exactly 9th of November so my understanding is that the fiscal year should end 9-Nov-2022.
My client has just informed me that my last working day will be 21-Nov-2022 so the last pay check will be received a few days after.

What is the best thing to do here?
1- Dissolve/Close the incorporation on 9-Nov-2022 and end my contract early?
2- Continue working till 21-Nov-2022 and close the incorporation later in Nov or Dec?
3- Leave the incorporation open till end of 2023?

Not sure what's the best option for me

Appreciate your advice!

why do you want to close it? and what does your client have to do with it

 

[Copingwithlife]

Hello,

Need some help on when to close my incorporation.

I am an IT Consultant 'self-incorporated' (B.C. LTD)
The incorporation was created a year back, on exactly 9th of November so my understanding is that the fiscal year should end 9-Nov-2022.
My client has just informed me that my last working day will be 21-Nov-2022 so the last pay check will be received a few days after.

What is the best thing to do here?
1- Dissolve/Close the incorporation on 9-Nov-2022 and end my contract early?
2- Continue working till 21-Nov-2022 and close the incorporation later in Nov or Dec?
3- Leave the incorporation open till end of 2023?

Not sure what's the best option for me

Appreciate your advice!

Your first fiscal year from incorporating can’t be any longer than 371 days from the date of incorporation . That would be November 15.
You’d file a T2 from the incorporation date to the dissolution date - closure date . If you close it after that date, example 29 November. You’d file another T2 for that short period , called a stub return .
You coyjd leave it open and just file simple T2 short returns aka nil . However if you aren’t going to use it anymore you want to go thru the process of dissolving it . Not dissolving it, not filling, leaves one open to on occasion receiving a demand letter to file a T2 from the Feds. Demanding you file . That comes along with hefty penalties & an estimate of corporate taxes owing.
You open a corporation, you close the corporation

 

[a21]

Will you stop providing IT consulting services after this client terminates the contract? If you are going to continue providing IT services to any other client on contract basis, then you should leave it open for future. But if you are thinking to accept another Full-time salaried job with an employer and not work as IT consultant on contract basis ever, then it would be wise to close the corporation after you file the taxes for 2022 year, which are are due after your fiscal year end.
If you decide to leave this corporation open and not earn any income in it, then you will have to file zero tax return every fiscal year.

The purpose behind it is whether you will continue providing IT consulting services in future to other companies. You can use this corporation for any consulting services you provide to any other company in future. It is your corporation and it has nothing to do with one particular contract ending with one client.