Investing

Setting up a corp to trade?

  • Last Updated:
  • Jul 6th, 2020 4:55 pm
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[OP]
Jr. Member
Feb 5, 2006
129 posts
14 upvotes

Setting up a corp to trade?

My friend and I have been trading for a while in our own respective non-reg accounts with decent success. We are now at a point where we want to take our trading to the next level, by combining our buying power, reducing costs, and reduce taxes. Our trading style if short-term. We are thinking about incorporating as the best way to do move forward. We both have full time jobs and this is something we would be doing on the side.

My friend is a contractor and has a corporation, he would be funding our joint account from his corporation and I would be funding it with my personal funds as I don't have a corporation. We are both based out of Canada (Ontario) and trade US stocks, we would primarily hold only USD in the account.

I'm hoping someone here can help share some information as the best way to move forward in terms of business structure, incorporating, etc.

Thank you,
4 replies
Deal Addict
Apr 5, 2016
4591 posts
3142 upvotes
Calgary/Vancouver
Best to talk to an accountant and get them to set it up for you. Less headaches down the road.
Current Fido and Rogers customer.
Ex Koodo customer.
Deal Fanatic
Jun 27, 2007
5468 posts
1888 upvotes
I am not sure accountant will be able to help. You need lawyer to draft corp structure, shares, etc.
accountants know the taxes...
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Deal Addict
Apr 5, 2016
4591 posts
3142 upvotes
Calgary/Vancouver
dlhunter wrote: I am not sure accountant will be able to help. You need lawyer to draft corp structure, shares, etc.
accountants know the taxes...
Oh maybe different based on province. The small business focused accountants here are able to advise on incorporating. I guess they have a separate legal team to handle it.
Current Fido and Rogers customer.
Ex Koodo customer.
Deal Addict
Jan 19, 2017
3264 posts
1799 upvotes
fizz wrote: My friend and I have been trading for a while in our own respective non-reg accounts with decent success. We are now at a point where we want to take our trading to the next level, by combining our buying power, reducing costs, and reduce taxes. Our trading style if short-term. We are thinking about incorporating as the best way to do move forward. We both have full time jobs and this is something we would be doing on the side.

My friend is a contractor and has a corporation, he would be funding our joint account from his corporation and I would be funding it with my personal funds as I don't have a corporation. We are both based out of Canada (Ontario) and trade US stocks, we would primarily hold only USD in the account.

I'm hoping someone here can help share some information as the best way to move forward in terms of business structure, incorporating, etc.

Thank you,
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