Entrepreneurship & Small Business

DIY Provincial (ON) or Federal Business Incorporation 1-2-3 & Save your money

  • Last Updated:
  • Jul 11th, 2018 2:05 am
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Newbie
Apr 24, 2015
4 posts
Toronto, ON
Poppwl wrote:
Mar 13th, 2018 11:12 pm
I don't even know why all these people want to incorporate. If you are not making a profit, it's additional cost for no reason. There is no tax benefits.

You can also reserve a bunch of useless names with NUANS that no one will want to buy from you.
Limited liability, and ofcourse there are tax benefits. But incorporation is obviously not for everyone.
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Jul 10, 2006
2735 posts
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Poppwl wrote:
Mar 13th, 2018 11:12 pm
I don't even know why all these people want to incorporate. If you are not making a profit, it's additional cost for no reason. There is no tax benefits.

You can also reserve a bunch of useless names with NUANS that no one will want to buy from you.
I need it for my commercial properties and the liabilities associated with them.
"Truth is High, Higher Still is Truthful Living" Guru Nanak
[OP]
Deal Guru
Aug 2, 2010
12472 posts
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Here 'n There
ashs wrote:
Jul 9th, 2018 1:25 pm
I need it for my commercial properties and the liabilities associated with them.
I have owned a number of commercial properties and never held them in a corporation it's just a lot more paperwork, hassle and cost. Liability insurance covers liabilities. What is it about your liabilities that are so special that your only option is to incorporate? Also, if you are going to do that you better hold each property in a separate corporation because otherwise the assets are pooled and exposed as a whole. That increases the cost, hassle and admin dramatically.
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Aug 15, 2015
1059 posts
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Markham, ON
ashs wrote:
Jul 9th, 2018 1:25 pm
I need it for my commercial properties and the liabilities associated with them.
I guess it makes selling your "commercial" properties easier. People are buying your property and not the service you provide.
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Jul 10, 2006
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eonibm wrote:
Jul 9th, 2018 3:53 pm
I have owned a number of commercial properties and never held them in a corporation it's just a lot more paperwork, hassle and cost. Liability insurance covers liabilities. What is it about your liabilities that are so special that your only option is to incorporate? Also, if you are going to do that you better hold each property in a separate corporation because otherwise the assets are pooled and exposed as a whole. That increases the cost, hassle and admin dramatically.
Fair enough but a big suit could take our house and I didn't want that. Not to mention the great tax rate of 15% for the first 500k. Having additional revenue on my personal. Tax was bumping us up too high.
"Truth is High, Higher Still is Truthful Living" Guru Nanak
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Aug 2, 2010
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Poppwl wrote:
Jul 9th, 2018 7:00 pm
I guess it makes selling your "commercial" properties easier. People are buying your property and not the service you provide.
Huh? It doesn't make it easier at all. Even if you own it outside a corp you can still sell the property just as easily.
[OP]
Deal Guru
Aug 2, 2010
12472 posts
3035 upvotes
Here 'n There
ashs wrote:
Jul 9th, 2018 10:20 pm
Fair enough but a big suit could take our house and I didn't want that. Not to mention the great tax rate of 15% for the first 500k. Having additional revenue on my personal. Tax was bumping us up too high.
Yeah but you were talking about commercial properties, not your house. Also, if your house, ie principal residence, is in a corp then you lose the tax free capital gain on selling it. Also, because of the concept of integration the taxes are the same whether you receive the rental income inside or outside the corp. You would have to keep it inside the corp for 10-15 years or so and achieve a positive return on that income after tax to enjoy any tax savings. Few people every do that, not to mention the extra cost of admin, accounting and tax returns really chips away at any savings achieved.

Methinks you are a bit too paranoid in this respect.
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Jul 10, 2006
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eonibm wrote:
Jul 10th, 2018 7:43 pm
Yeah but you were talking about commercial properties, not your house. Also, if your house, ie principal residence, is in a corp then you lose the tax free capital gain on selling it. Also, because of the concept of integration the taxes are the same whether you receive the rental income inside or outside the corp. You would have to keep it inside the corp for 10-15 years or so and achieve a positive return on that income after tax to enjoy any tax savings. Few people every do that, not to mention the extra cost of admin, accounting and tax returns really chips away at any savings achieved.

Methinks you are a bit too paranoid in this respect.
Well right now one residential 4plex brings me an additional 20k profit yearly to my personal income which pushes me and the wife's income higher. We recently purchased a commercial/residential triplex under our new corporation. This will also bring in profits but now will be taxed at the corporate rate which is what we wanted, our future purchases will now be used by the funds saved with the corporation not for dividends, we have our regular day jobs and salaries. I am new at this and learning as I'm going.
"Truth is High, Higher Still is Truthful Living" Guru Nanak

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