Entrepreneurship & Small Business

Provincial VS Federal Incorporation for Online Business

  • Last Updated:
  • Aug 15th, 2021 10:13 pm
[OP]
Newbie
Jul 8, 2021
6 posts

Provincial VS Federal Incorporation for Online Business

Hello guys,

I currently reside in Alberta, but planning on moving to BC later this year.
I have recently started an app development business with clients from all over the world (mostly USA), where I charge USD $250-600 a year per client. I am not going to get into specifics, as that shouldn't really matter.
Federal filing is slightly cheaper as far as I am aware, and provides more protection for the name of the business.
I run the business from home.
My question for you guys is, with this business being 100% online (no physical products at all), should I incorporate provincially or federally? And why?

Thank you!
3 replies
Deal Fanatic
Jul 26, 2007
6913 posts
4499 upvotes
Toronto
Only thing I can think of is if you are planning to have physical presence in other provinces. Sounds like you are only at home, so you can go with either one. If you register provincial, this doesn't mean you can't sell to other provinces or countries.
[OP]
Newbie
Jul 8, 2021
6 posts
peteryorkuca wrote: Only thing I can think of is if you are planning to have physical presence in other provinces. Sounds like you are only at home, so you can go with either one. If you register provincial, this doesn't mean you can't sell to other provinces or countries.
Thank you for the reply, @peteryorkuca.

If I register in Alberta and then move to BC and operate from there, will that be a problem?

Other than that, are there any major adv/disadv with either method of incoporation?

Thank you.
Newbie
Aug 14, 2021
2 posts
1 upvote
Niagara-on-the-Lake
As someone who is strongly considering incorporating (myself), I think you might benefit from watching this video, if you haven't come across it already.

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