Entrepreneurship & Small Business

Shoppify Business sole proprietorship vs incorporation

  • Last Updated:
  • Jan 11th, 2021 12:34 pm
[OP]
Newbie
Jun 15, 2019
6 posts
1 upvote

Shoppify Business sole proprietorship vs incorporation

Hello,

We have recently started a shopify ecommerce business and the demand has been higher than expected. Initially we planned to just operate as a s.p. until we better understood the market but now it seems like incorporating would definitely be better. What is the best way to go about this? Many people incorporate so they can work as consultants so I can see they don't have the same debt and inventory issues we do.

1. We started this using debt to order our inventory (personal cc/locs). How does this translate when we corporate?
2. We have made sales but haven't shipped anything yet and won't for another few weeks. Pre-sales mostly.
3. Do we need to only register in ontario (where we live and also have our warehousing) but we do have customers across Canada and the USA.
4. Do we need to create a bank account specifically for the corporation. How do we handle the fact that inventory was from our personal debt?

Thanks for the help! Everything is just so overwhelming so a good point to start would be appreciated.
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