Incorporate or Sole Prop or something else?

[Epinephrine]

This is what scares me. But I think if I split it up among my closest people it might be okay. I just don't want to waste precious time arguing about something that I KNOW is right. Time-sensitive decisions are essential and if I'm stressing myself out arguing with the shareholders and stressed about that, I won't be able to focus on the important things.

Why do they do that anyway? It's my company, it's my decisions that will bring us to success, it's my money going into it. Seriously, why?

A corporation isn't 'your company'. It's a private entity unto itself. You can have a certain amount of control over it, but it's never fully yours.

[Material Girl]

Incorporate...in fact S-Corp yourself.

C-Corps are out of date anymore and in an S-Corp they no longer come after you personally when or if it fails.

You hit the nail on the head when you noted "potential liability".

I don't believe S-Corps are applicable in Canada. What are the main differences between a C and an S?

[Material Girl]

If you incorporate you would need to distribute ownership via shares (not the publicly traded kind) which is generally how important business decisions would be made.

This is what scares me. But I think if I split it up among my closest people it might be okay. I just don't want to waste precious time arguing about something that I KNOW is right. Time-sensitive decisions are essential and if I'm stressing myself out arguing with the shareholders and stressed about that, I won't be able to focus on the important things.

Why do they do that anyway? It's my company, it's my decisions that will bring us to success, it's my money going into it. Seriously, why?

[404 Not Found]

Incorporate...in fact S-Corp yourself.

C-Corps are out of date anymore and in an S-Corp they no longer come after you personally when or if it fails.

You hit the nail on the head when you noted "potential liability".

[iLDuce]

Can I humbly suggest that you don't waste your time and/or money?

[Eric is God]

Do you think it's better to incorporate a company when you're just starting out? Or is it better to be more grassroots? I'm thinking that it would be better to incorporate because of less potential liability in a crises, but it seems you have to have a few officers instead of just making all the decisions yourself, which could present challenges. Plus, with a corporation you can't really write things off. What would be the best way to pay lower taxes with an incorporation in Canada? Anyone here know this stuff? I would appreciate any solid advice.

Are you looking for 100% auditor proof advice or just some general knowledge? I might be able to dust off my old Canadian tax law book tomorrow as I'm taking my 3rd vacation day in the last 8 months. Keep in mind there are legal fees to incorporate but if you are going to be dealing with large corporations it seems like the best idea. If you incorporate you would need to distribute ownership via shares (not the publicly traded kind) which is generally how important business decisions would be made. Of course you can write things off with a corporation. Things may have changed since I first learned this stuff but you should be able to write off just as much, if not more, things as a corporation than a sole proprietorship.

[Material Girl]

Well yeah, but the thing is... pretty much all of our dealings will be on a national or international level. If it was limited to a local economy then yeah, for sure. I just don't think we want to be a sole prop while dealing with huge corporations because you just never know what they might pull. We're starting out with one industry but plan to branch into a few others. I'm thinking if we register a holdings company corporation, that might be the best way overall to cover it. But I'm still not quite sure. I guess you can't really write off as much stuff with the corporation. Too bad Conrad Black didn't know that.... :P

[Dameon Angell]

Be grassroots to start off, always. You base your clients on a small group of local people. You try it out on a small scale to see if it would work. Then incorporate later if you get results.

[winipcfg]

I will serve on your board of directors.

[Material Girl]

Do you think it's better to incorporate a company when you're just starting out? Or is it better to be more grassroots? I'm thinking that it would be better to incorporate because of less potential liability in a crises, but it seems you have to have a few officers instead of just making all the decisions yourself, which could present challenges. Plus, with a corporation you can't really write things off. What would be the best way to pay lower taxes with an incorporation in Canada? Anyone here know this stuff? I would appreciate any solid advice.