Entrepreneurship & Small Business

Partnership to incorporation steps?

  • Last Updated:
  • Oct 21st, 2021 12:36 pm
[OP]
Member
Nov 10, 2015
377 posts
388 upvotes
Thornhill, ON

Partnership to incorporation steps?

Hi,

We currently have a partnership business and we want to incorporate it. Reading some articles from the CRA, it mentions that we have to start at square one when incorporating, which is fine. Do all the paperwork etc.

Few questions...

The money the "business" has, do we open a seperate bank account for the corporation and transfer the funds? Will those funds then be owed to the shareholders tax free?

Do we get a new hst number? Or use the current one?
We are in Toronto for reference.

Thanks!
1 reply
Deal Fanatic
Aug 21, 2007
5854 posts
717 upvotes
Markham
does the partnership have any assets? either tangible (property, equipment, etc) or intangible (customer lists? licenses?)

that will go along way to determining how to properly structure

if you just incorporate then yes, any money in could be a shareholder loan that can be withdrawn tax free

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