Business Address And Use Of Home Address
Many home businesses start as Sole Proprietorships, and your home address is available to use for your companys business address. The address must be a physical location where you are located. The address for both the business owner and the business itself cannot have a postal box including in the address. If you live in a rural community, you can provide the lot and concession number to register your business.
What Do You Need To Incorporate Your Business
When you incorporate, it may be wise to hire a professional accountant to oversee the financial side of the registration process, as well as a lawyer to counsel you on any legal requirements. In that case, save at least $1,000 $2,000 for these costs alone.
You may also have to provide these documents during and in the years that follow the registration process :
- Articles of incorporation
- Yearly information returns
- Various corporate records
- Annual corporate tax returns and financial statements
- Payroll remittances and filings for corporate employees
- GST and/or HST filings
- At least one NUANS or CIDREQ name search report to confirm that your company name is not already taken.
Although you can do all this online through the Government of Canada website, there are also many physical outlets and business web portals in every jurisdiction where you can register for provincial or federal incorporation.
Advantages Of Changing To A Corporation
Converting from sole proprietorship to a corporation protects your personal assets by setting it apart from your business assets. In case of potential bankruptcy or a lawsuit filed against your company, your personal assets will no longer be put at risk. The same applies when youre transitioning into an LLC. This means that if in case your sole proprietorship has risky finances or is a legal liability, forming an LLC or a corporation will effectively protect your personal assets. There are however, some situations wherein you can still be considered liable, but this can be remedied by getting business liability insurance. Transitioning into a corporation is also an effective way to save money on taxes, which can be quite significant especially for businesses raking in large profits.
Compared to sole proprietorships, corporations get easier access to financing. A sole proprietorship has a single owner, and is unable to accommodate investors who can share in the businesses profits. A corporation on the other hand, can attract investors due to its stock structure, transferability, perpetuity, and limited liability. Getting a loan is also a more stressful and tedious process for sole proprietors, as their personal finances and credit history are considered.
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What Are The Disadvantages Of The Sole Proprietorship
While the sole proprietorship is fast, easy and inexpensive to start, the major downside is that the assets of the business and the owner are the same. If the business is sued, the business owner could risk losing their personal assets.
The corporation and LLC offer liability protection.
Read: Sole Proprietorship vs LLC
How Long Does It Take To Register And What Are The Costs
To register with Ontario Business Central, the base fee to register a Sole Proprietorship is $143.62. The registration is completed on a same-day basis Monday thru Friday before 3:00 pm EST.
Ontario Business Central has been assisting entrepreneurs to start their businesses since 1992, and we would be honoured to assist you in registering your business.
If you wish to register your Sole Proprietorship with us, here is the link to do so
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New Ontario Business Registry
Businesses can now complete over 90 transactions online through the new Ontario Business Registry. This includes:
- register a new business name
- renew an existing business name
- dissolving an existing business
- incorporate, dissolve and change a corporation or not-for-profit or charity
- search for a business or not-for-profit corporation
- file notices and other documents under other business law statutes
Currently, mailing or emailing documents is also still available.
Registering existing business: Existing businesses and not-for-profits who wish to access their profile or file documents using the Registry will require a Company Key. Businesses can submit a request for their company key at Ontario.ca/BusinessRegistry.
New businesses and not-for-profits should visit the Ontario Business Registry: all services page for instructions on how to create and register their new business.
Anyone can do a free search of the Ontario Business Registry to get basic information about a business or not-for-profit corporation.
Some offices closed
As a result of the launch of the new Registry, six service counters across Ontario will no longer endorse articles submitted under the Business Corporations Act. As well, the ServiceOntario counter at 375 University Avenue in Toronto has closed. Visit ServiceOntario for information on what offices are still open and what transactions can be completed in-person.
Manitoba Registration Of A Sole Proprietorship
1. Reserve your Business Name
File a name reservation with the Companies Office. This can be done online by creating an account with the Companies Office or by and mailing it in along with the fee. The cost for reserving your business name in Manitoba is $45. There are specific guidelines for choosing a name in Manitoba that should be reviewed since, if your name is rejected, you will have to reapply and pay an additional fee.
2. Register your Business Name
Register the sole proprietorship by using the business name registration service either online with the Companies Office or along with the fee. The fee for registering your business name in Manitoba is $60.
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Key Steps To Setting Up An Establishment Or Sole Proprietorship
- Speak with one of Dhanguards advisors about the best legal structure for your business based on the activities you plan to do in the UAE and your target markets. A client may also get legal advice to confirm Dhanguards recommendations.
- Appoint a National Service Agent , who must be a UAE national or a corporation with 100% UAE ownership.
- Connect with our experts to learn more about the documents needed to start a sole proprietorship.
- All needed documentation must be given to Dhanguard, which will then oversee the entire application procedure.
How Do I Start A Sole Proprietorship In Florida
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Types Of Business Entities To Consider
Apart from a sole proprietorship, there are several other business entities that could be a better fit for your company. These entities offer limited liability, meaning your business’s assets are considered separate from your personal assets, thereby protecting your personal assets in the event of fines or lawsuits.
What Is Sole Proprietorship In California
The most common form of business ownership is a sole proprietorship. It is not considered a separate entity like a corporation but an extension of a single owner or individual. The company and the owner dont exist apart from each other. A sole proprietorship consists of an individual or a married couple. A business is liable for all debt, obligations that are attached to the business including the profits earned. Moreover, all business-related acts involving employees, delegating decisions, and management are attached to the sole proprietor. The life of sole proprietorship continues to exist until it goes out of business or once the owner passes away.
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What Is An Incorporated Company
If your business is continually growing in size and profitability, then it may be time to register it as a company on a federal or provincial level, otherwise known as incorporation. Most financial experts recommend this process for businesses that earn $50,000 or more yearly.
While some business owners are hesitant about the extra costs and documents associated with the registration process, incorporating can be highly advantageous because it turns your private enterprise into a separate legal and financial entity. This provides you and any other shareholders added with protection from lawsuits, debt collection penalties, and other liabilities that the corporation accrues. Not to mention, it allows your company name and legacy to live on, even after you have sold your shares or deceased.
Want to increase your business cash flow?.
When Your Business Becomes Incorporated
Your legal status can change in one of the following ways:
- from sole proprietorship to corporation
- from partnership to corporation
When you change your legal status to incorporate an existing business, you need to do the following:
You must contact the appropriate incorporating authority and register a new corporation, even though you already have an existing BN.
If you are incorporating with Innovation, Science and Economic Development Canada or one of the provincial incorporating authorities listed on Canada Revenue Agency registration and other provincial or federal programs, the following will apply:
- a new BN will automatically be registered with the CRA for your new corporation
- a new Corporate Income Tax program account will automatically be associated to the new BN
- skip step 2 and go to step 3
Once your incorporating authority has provided you with your new incorporation information contact the CRA at 1-800-959-5525 to register a new BN. A new RC program account will automatically be associated to the new BN. During the same phone call, follow step 3.
Once the new BN has been registered with the CRA, any program accounts that are associated to your old BN, such as GST/HST program account or payroll program account will not be automatically associated to the new BN.
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Benefits Of An Incorporation
- Limited liability means your exposure to any retribution should your business not do well is limited
- The ability to transfer ownership if you sell your business
- Raising capital from investors and financial institutions is easier
- There are a number of possible tax advantages that can be explored
- Be better prepared for legacy and estate planning as your business theoretically exists forever
Do I Have To Register My Sole Proprietorship In Florida
Unlike corporations, sole proprietorships do not need to register with the state before starting up business in Florida and they are able to function without holding annual meetings or any other formalities that corporations must follow. Its not necessary for you to create a board of directors this is all your business.
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What Do You Need To Start A Sole Proprietorship In Canada
There are a few things you may want to consider when setting up your business:
Pros And Cons Of Incorporating A Sole Proprietorship
In a sole proprietorship, only one person owns the company. The owner doesn’t pay corporate taxes on any profit but instead reports it on their personal income tax return. Some advantages of this business type include fewer regulations, less paperwork, simpler tax returns, and one profit beneficiary.
There are many advantages of incorporating a sole proprietorship besides separating your personal assets from your business, including:
- Your personal assets are not at risk if there is a company lawsuit or bankruptcy. Note that you may want to consider business liability insurance because there are some cases in which you might be liable.
- Corporations offer tax savings, which varies depending on the profits your corporation is realizing.
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Is It Time To Convert Your Sole Proprietorship To A Corporation Or Llc
One of the biggest issues a small business owner must face is whether to incorporate and if so, when.
Many people start their businesses as sole proprietors. Often, it is because they aren’t really planning their business and just started selling a product or service. Sometimes, they don’t want to go to the effort or cost of incorporating until they know if the business is viable. Other times, they don’t feel their business is risky enough to need protection.
Open A Business Bank Account
Its important to keep personal and business expenses separate when running a sole proprietorship . Opening a business bank account ensures a certain level of protection for your business funds, allows customers to pay with a credit card and make checks payable to your business, and allows your business to build a good credit history.
You want to be able to prove to the IRS youre running your business to make a profit. This ensures the losses you experience during the first few years will remain tax deductible.
Its also wise to build a good credit history before starting your business. While credit cards can help you out in your companys early days when cash flow is low, the interest adds up quickly and can easily become overwhelming.
A personal loan is often a better option, and a good credit history is necessary for securing a loan of this type.
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Sole Proprietorship Vs Incorporation
If youre new to running a business, then you may not fully understand the difference between a sole proprietorship and incorporation. According to the IRS, a sole proprietor is an individual who runs an unincorporated business on their own. Its the easiest and most common way to start a business in the U.S.
Thats because theres no paperwork for you to fill out or dues to pay when youre just getting started. As long as youre the only owner, youre automatically granted the status of sole proprietor without having to do anything.
In comparison, incorporation is the legal process of forming a company. Youre forming a business entity and creating a legal separation between your personal assets and the businesss assets. Most businesses either incorporate as an S corporation or a C corporation.
A corporation may be able to take advantage of certain business deductions that arent available to sole proprietors. However, both business models require a lot of paperwork to get set up.
Searching For The Availability Of Your Business Name
There isnt name protection available for your Sole Proprietorships business name however, it is essential to consider if you are comfortable with other business existing owners having and operating the same business name. If you do not wish to share the same business name with other businesses, you will want to investigate your chosen business names viability. You can do browser searches at no cost and know whether your business name has already been selected by other business owners who have a web presence.
It is important to mention that once you have registered your business name, as stated earlier, there is no name protection, so another business under the same name may be registered or incorporated at any point after you have registered.
An important secondary element to searching a business name is to allow professionals to search the NUANS name search database. This data bank maintains records of most businesses registered, incorporated and trademarked throughout each Province or Territory in Canada, whether they have a web presence or not. The search results are much more thorough than what you can search for yourself online, and there are multiple variations of your business name previewed. The NUANS database is compiled from government records in most jurisdictions where individuals have registered, incorporated or trademarked.
How To Complete A Domain Search?
Registering Your Sole Proprietorship And Domain
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Benefits Of A Corporation
– Shareholders are not personally liable for debts or obligations of the corporation
– More government funding options to help build and grow your business
– Can write off certain business expenses and may also benefit from additional tax advantages
– A corporation exists in perpetuity and ownership is transferable
Create A New Business Entity Or Not
To create a new business entity or not-for-profit corporation, select the appropriate button below and follow the prompts. For security reasons, you will be asked to create a ONe-key ID and a ServiceOntario account.
If you are incorporating a business or not-for-profit and are proposing a name that you have chosen yourself, please get an Ontario-biased Nuans Report to confirm that no existing Ontario corporation has the same name or a name thats similar to the one you are proposing.
You can get an Ontario-biased Nuans Report from one of the governments authorized Service Providers:
Follow each providers link to learn more about the services they offer.
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Incorporating A Sole Proprietorship
Changing from a sole proprietorship to a corporation helps protect the business owner’s personal assets by separating them from those of the business. The level of protection varies depending on the type of corporation you select.
- S corporations are often used for small businesses and aren’t usually taxed at the corporate level but rather on dividends.
- C corporations require you to pay corporate taxes, but you can also appoint a board of directors and issue company stock.
- Limited liability companies provide similar protection of personal assets, but owners can receive their company profits without paying corporate taxes in some states. An LLC also allows for greater flexibility for profit distribution.
Access Your Existing Business Or Not
If your business or not-for-profit corporation was registered or incorporated before the launch of the Ontario Business Registry on October 19th, the information has been migrated from the old system and it has a profile in the new registry.
To access a business or not-for-profit corporation profile, make filing under business statutes you will need its company key. A company key is similar to the Personal Identification Number you use at the bank or to access other online accounts or services.
1. Get a company key
In order to access the Ontario Business Registry, you must get a company key.
Note: make sure your company information is up-to-date.
2. Login into One-Key
Once you have a company key, select the button below and follow the prompts. For security reasons, you will be asked to create a ONe-key ID and a ServiceOntario account.
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