Entrepreneurship & Small Business

Has anybody here incorporated an online business? I need some advice!

  • Last Updated:
  • Jul 19th, 2019 8:28 am
[OP]
Newbie
Mar 7, 2011
35 posts
Canada

Has anybody here incorporated an online business? I need some advice!

Hey all,

I run a freelance business and am planning on incorporating. I recently completed a year as a sole proprietor, but heard incorporating is recommended for tax purposes.

Here are the questions I have...

1. How difficult is it to change a name once it has been incorporated?

2. I already have registered a business name in Ontario and got the Master Business License. Will this conflict or no?

3. Legal endings I can choose are Limited, Ltd, Incorporated, Inc, Corporation, and Corp. Does it matter which one I choose or is it mainly only for name aesthetic purposes?

4. My main services include web design, mobile design, UX/UI, and development. Would this fall under the “Professional, Scientific and Technical Services” category? There were no other relevant options other than “Other”.

5. When should I select the company’s fiscal year-end? What is the ideal date? I filed taxes already as a sole proprietor, on my own, back in April 2019. Not sure when I should choose my fiscal year-end though.

6. For “Business Address,” do I have to put my home address? Or can I use a business address I purchased elsewhere?

7. It seems that I need 1 Incorporator, 1 Director, and at least 2 Officers (President + Secretary). Can I just put my own name for all these for now? How hard will it be to add other people later, if necessary?

8. It’s asking me now for a “Price Per Share”. What dollar amount is the best rule of thumb to put here? Or does it not matter at all in the beginning? Note: Since I’m the only owner, I’d put myself at 100% ownership.

9. Any other details I should be aware of before incorporating?

Thanks in advance for any help!
1 reply
Sr. Member
Nov 12, 2014
910 posts
585 upvotes
Kingston, ON
The only tax advantage of incorporating is if you can leave some of the money you earn in the corporation for a tax deferral (i.e. don't tax the tax now, pay it later). Otherwise, there's actually at tax cost of incorporating. There may be other non-tax issues for wanting to incorporate.

Top