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Thread: to incorporate or no ?
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04-26-2005, 10:02 PM #1WHT Addict
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to incorporate or no ?
Hi,
first, sorry for my poor english grammar. My native language is french and english is still in learning
I'm living in canada and i'm running a small webhosting server since a year and a half. I'm doing like 100$ after all expenses every month with 6 or 7 customers. I do not really sell from my website right now, every customers was get from mouth-to-ear or friends.
I'm not telling government about the cash i'm doing, anyway 100$ month is nothing
I want to run my business as an "autonomous worker"... ( I'm not sure of the english term for "travailleur autonome". Maybe it's contractor ? ).
At the end of the year, i will tell to the revenue agency how much money i did and how much expenses i had as an autonomous worker. ( In canada, we can do it in a special section in our tax report. )
This is all legal ( for as much as i know ). I'm giving services to people as a contractor. No headaches of a company structure, no separate tax report and stuff, no need for an accountant... etc etc...
So, i'm asking canadians, is it wrong ? Will i get into problems ? Should i incorporate a company ?
Any others here doing the same ?
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04-27-2005, 03:10 AM #2Newbie
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I'm not a Canadian, but from past experience it's probably best to incorporate, just as a legal protection for you and also because it will make it easier to open accounts under the company name, so you will not be directly affected by any losses or possible legal issues that may arise.
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04-27-2005, 08:40 AM #3Web Hosting Master
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You may not need to incorporate but you should atleast register the business with the province you are in. I just incorporated federally and its a lot of crap to go through but its better for the long run if the company is successful and what not. If the $100/month is all your income then you won't pay tax on it but you have to claim it. Say in 2 years you are making $1000/month and they audit you an go back then you are basically screwed, not mess with the governments money
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04-27-2005, 09:28 AM #4WHT Addict
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thanks for your reply both of you...
Crazyfish, your reply was interresting. I didn't think about register my name. It's an important task ...
i was thinking about incoporate the businness federally too...
But I think i'll wait a few years before incorporate... I don't have the cash to pay the accountant... I even need a new customer because with his money, i'll pay the clientexec license
see i'm in the very begining of my business...
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04-27-2005, 09:49 AM #5Newbie
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- Jun 2003
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Jack, you should register your company at the Federal government to register your name ... I paid 32$/year from that (in Quebec, I don't know about other province).
That will make your company more professional, and more serious ... and a little 32$/year isn't a big depense
(Sorry for my poor English too
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04-27-2005, 10:15 AM #6Web Hosting Master
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I registered online for the Canadian government for $200 so its not that expensive in the long run, which is what I hope you are planning for. I am going to see an accountant tomorrow that give one free consultation for small businesses. Its all about taxes in that meeting.
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04-27-2005, 11:03 AM #7WHT Addict
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birkoss, i'm in quebec too bonjour à toi ...
Can i communicate by mail with you, we could help each other if you care. I'm really good with everything related to linux, freebsd, servers stuff... so it could be a sharing of knowledge
Crazyfish, can you give me a small report of what was said during your consultation ?
The problems i see with a company, is all the accounting stuff... the structure... the legal stuff related with the administration... the tax reports, etc.
You absolutely need an accountant for all the stuff right ?
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04-27-2005, 11:24 AM #8Web Hosting Master
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Accounting is vital, you don't want to mess up your taxes you know. As long as you can keep good records yourself then you can minimize the cost of using an accountant. I wouldn't want to pay one to do all the day to day stuff. But for filing taxes I think its almost a must for a business.
If you want maybe we can trade msn or email address.
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04-27-2005, 12:55 PM #9Newbie
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- Jun 2003
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jack finch : sure you can contact me : admin at birkoss dot com.
Sharing knowlegde is essential ... else why knowing something if we don't share it ?