Incorporation FAQ
Why wait ?
Incorporate now!
Why Should I Incorporate?
Short Answer:
Long Answer:
If you are presently a sole proprietor, in a partnership or an employee there are many reasons to consider incorporating your small business. Our Incorporation calculator lets you work out the potential tax savings you could achieve by Incorporating.
Below are some of the benefits of incorporating.
- Significantly Reduce Your Taxes – You can significantly reduce your overall income taxes by leaving income in your corporation that will only be taxed at approximately 20%, and avoid the highest personal income tax rates of 40% to 50%.
- Build A Big Corporate Retirement Fund – Using the low corporate income tax rate of approximately 12.2%, you can retain income in your company, and use your company as a strategy to accumulate a significant retirement investment portfolio for yourself.
- Get A Tax Free Loan – You may be eligible to borrow money from your company to buy a home or automobile without having to immediately declare the loan as personal income.
- Receive Tax-Free Retirement Dividends – Upon retirement, or during a sabbatical from working, your spouse and you can receive dividends of approximately $30,000 each from your company, and if you have no other personal income, the total $60,000 of dividend income can be received as personal income tax free.
- Smooth Income – Should your IT contracting or consulting income fluctuate significantly from one year to the next, you can use your company to smooth out your personal income over two or more years, resulting in lower overall income taxes.
- Protect Personal Assets – Your company provides you with limited liability from your corporate IT contracting work, resulting in protection of your personal assets.
- Increase Your Marketability – Due to the increased tax audit risk from the Canada Revenue Agency (CRA – formerly Revenue Canada), many large customers and IT staffing agencies prefer to deal only with incorporated IT contractors rather than sole proprietor IT contractors.
- Additional Tax/Financial Strategies Available – Corporations have additional tax and financial planning strategies available for your use such as the creation of individual pension plans, investment holding companies, joint venture companies, etc.
Should I Incorporate Federally Or Provincially?
Short Answer:
Long Answer:
Should I Use A Professional To Set Up My Incorporation? Or Should I Do It Myself Online?
Short Answer:
Long Answer:
Too often business owners take the advice of a friend and go online to incorporate. Be aware online registries do not give advice. Decisions have to be made as to how to distribute the shares to the shareholders, the importance of keeping a minute book, how to choose your year-end or the ongoing obligations of a corporation. Most likely you will be the majority shareholder or only shareholder in the corporation as well as one of the employees. Getting proper advice from a professional may cost a little upfront, however, can save you a lot of money when you have a successful, profitable corporation.
How Long Does It Take To Get Incorporated?
Short Answer:
Your articles of incorporation can be available in as little as one hour. Your complete incorporation package including the electronic corporate minute book, and GST/HST registration takes between 3 – 5 business days.
Long Answer:
Your articles are processed immediately and can be available in as little as 1 hour if submitted between 8 a.m. and 4 p.m. (E.S.T.). If submitted outside of these hours, they will be placed in queue for automatic submission on resumption of regular service.
Your complete incorporation package including the electronic corporate minute book, and GST/HST registration takes between 3 – 5 business days.
How Much Does It Cost To Incorporate?
Short Answer:
CPA4IT offers a variety of incorporation packages. Our Standard Package is $795 + HST and this fee includes the government filing fee, the name search fee, minute book, seal and all documentation listed below. In addition we offer special discounts for clients that come through our referral network. Ask your recruiter if they are part of our network and what value added pricing is available for you.
Long Answer:
Bare Minimum
The Basic Incorporation Package
$495*
- Preparing Nuans Name Search Report
- Preparing Articles of incorporation for Government Approval
- Government Filing Fee Included
- Name Search Fee Included
- Guidelines for Newly Incorporated Company
POPULAR
Standard
Includes Minutes and Shares
$795*
- Preparing Nuans Name Search Report
- Preparing Articles of Incorporation for Government Approval
- Government Filing Fee Included
- Name Search Fee Included
- Guidelines for Newly Incorporated Company
- Electronic Minute Book Included
- Corporate Minutes
- Corporate Bylaws
- Form 1/ Initial Return Filed with Government
- GST/HST Application
Small Business
Includes Website & Business Cards
$1,295*
- Preparing Nuans Name Search Report
- Preparing Articles of Incorporation for Government Approval
- Government Filing Fee Included
- Name Search Fee Included
- Guidelines for Newly Incorporated Company
- Corporate Minute Book Name Plate & Seal included
- Corporate Minutes
- Corporate Bylaws
- Form 1 / Initial Return Filed with Government
- GST/HST Application
- Quick Method Election Filed (GST/HST)
- Creation of 4 Professional Website with 1 Year of Hosting
- Creation of Professional Letterhead
- Creation of Business Card Template including 100 business cards
