Incorporate or Sole Prop or something else?

[Material Girl]

Okay, so I just found out that I don't even have to choose a BOD. I can be the only BOD. Looks kinda tacky, but hey it works for me. What a relief.

[spacepimp]

holy shit your a dumb fuck.

[Spider]

I can't believe nobody asked this, but what kind of business are you going into? Sounds like you are distributing or producing something but can you get us a broad little category to satisfy some people’s curiosity?

Also, I am totally surprised you got some decent sounding information and advice. If Eric and Epi didn't happen to be trolling the forums at that exact moment every reply would have likely ended up closer to spacepimp's end of the retarded crap --- worthwhile reply spectrum. Hahaha.

Also, "I do absolutely understand that. I'd just give myself a bonus instead." sounds like you might end up like Conrad Black in, oh, about 15 minutes. That's beside the point though. What kind of business is it? As long as you aren't opening a restaurant I bet you'll be fine. I heard almost all new restaurants fail. I'd never put money into one of those pits. Who needs them, anyway, with so many Tim Hortons and SubWays?

[404 Not Found]

I have no clue as to what the corp. law structures are in Canada, but rather than clarify the differences, this nice little chart below should answer some of the differences between LLC, C-Corps & S-Corps.

A business class can do wonders as well as I would not waste any time establishing a corp. unless you have a product or service that is in demand and will make you money!

Consider the costs of Incorporation, obtaining legal council to represent and submit a fictitious name prior to incorporating. You have tax obligations as well as accountant requirements to keep the books...you do not want to be audited! Payroll taxes, local and national corp. taxes paid by the 1/4 , 1/2 or end of year depending on fiscal spending and receiving.

Is the business to be used as a write-off?

So many variables....talk to someone in business and get some ideas, as well as possibly take a class in economic, accounting and small business. The work to start one is hard and takes a lot of time, but if you have the service or product that is in demand, what you put into it from the start can pay off big time in the end, especially if you can build it up to sell or go public.

[Material Girl]

About the bonus thing... I will never do anything without checking with my lawyer first. If it's questionable, obviously I won't risk it.

As for the restaurants, I think there's always room for a new restaurant if there's a consistently good menu. People would rather spend an extra $10 or $20 for a palatable, memorable meal than waste money on fast food. But the profit margins are generally pretty slim so unless you absolutely love it, there's not much point going there.

How is a business used as a write-off?

[H.M.S. Stargazer]

I'd have to disagree on the restaurant thing. Today's society THRIVES on fast food. But as being a Manager of both a corporate and grass roots business(Now and at another time respectively). I can say that If you want to have stability and low risk, go corporate.

[Eric is God]

I agree with stargazer. There is something warm and snug about working for the most valuable company in Canada.

[Spider]

I wasn't just speculating, it's a fact that restaurants often fail, it's a notoriously hard business to get into. The percentage of new restaurant business that succeed is much lower than is the case in other industries. I wasn't just spouting off crap that I personally think, I don't often do that. Obviously if you make a kick ass one it will stand a good chance of succeeding.

http://www.businessweek.com/smallbiz...932_page_2.htm

This website refers to it as a myth but at least it confirms that it's a myth which exists and you didn't know.

http://www.usatoday.com/money/smallb...-success_x.htm

Same data but this person didn't refer to it as a myth. I guess it's your opinion as to how bad a 60% in the first 3 years failure rate is.

[Galleleo]

Part of what makes a restaurant so hard to run is the time. Mostly 7 days a week, you start at 2/3pm if you only serve during the evening. Your day is done at like 2/3 am after closing up and cleaning etc. You don't get a lot of time for yourself when you run a place so you have to be really committed.

[Material Girl]

I think another problem that could potentially doom any restaurant is that it's hard to get long-term managers if you're only paying them a mediocre salary and they're working like 15 hours everyday.