I traveled 1 hour to see him for business advice. He seemed honest, knowledgeable and was very clear in his explanations. Now, I have a clearer direction and was saved from future costly mistakes. I highly recommend seeing him for a consultation if you have any questions or doubts. It's always better to see someone in person to get a better understanding on your unique situation.
thank you the 4 minute information I learned a lot what's kind and different business that exist and what are the functions . I learned a lot, I can't wait when I have a moment to look and listening to your other educational RUclips business Channel.
Thank you Eugene, for your professional advice on starting my own business, and providing information about the three different business entities in Canada.
Thank your MrMawnster for your warm words. My idea is to help people that are looking for this information and can't find it in a simple, concise form...
Hello Eugene, thank you for taking the time to put this up! I just had a question can I run 2 businesses under the same partnership. I know in the US but not sure for Canada.
Craig, The answer isn't simple. From the corporate legal perspective - absolutely yes. You can start your business as a temporary resident in Canada, all you need is a Canadian resident/citizen to be a director in the company. The problem is - who will be operating the business? Since you are a student, your ability to work is somewhat limited (I'm not an immigration lawyer, but I understand there certain limitations). So, if you are an international student in Canada, you should consult your immigration consultant before you start your business here. If you have a partner in your business, and that person is a Canadian, then things could be easier. Please let me know if you have any further questions.
What about the person who is on open work permit? After finishing studies as a international student?? And you said director should be Canadian so what percentage of shares he should be holding in company? Is there any minimum??
Business in Canada - Do it Right! What about the person who is on open work permit? After finishing studies as a international student?? And you said director should be Canadian so what percentage of shares he should be holding in company? Is there any minimum??
Hi Eugene, Thanks for putting up this video for all of us. Which entity should a business of online nature fall under with transactions happening all over the world ? What sort of compliance are required and taxes to be incurred ? Appreciate your guidance Cheers!
Manish, I am uploading three new videos as we speak, and recording a new one that should answer your question. It will be a detailed explanation of legal aspects of running an e-commerce business. I hope it will be up and running within the next 2-3 weeks.
@@businessincanada-doitright1822 Thanks Eugene. Much appreciated! Will it be possible for you to cover a model where consultation services are provided over internet irrespective of service provider and customer's geographical location ? Compliance on Canadian side for incorporation and if you could foresee any requirements on country of customer base. Just an overview. Cheers!
While filling the cic form what should we write in business activity for starting an general trading business.....cant find any word related to trade ,import or export
Try using "sale" or online sale. CIC uses "trade" as a "profession" and not as "sales", so you have to move away from "trading". Once you use "sale" or "sell", you will have lots of options to work with.
Hi Eugene. If I have a business where I bring in independent contractors to do work for clients, would it be safer to register as a sole proprietor or LLC? If the clients have a reason to sue, would they sue the independent contractors, or would they sue me? Thanks.
HI StatsGopher, First of all, there is no LLC in Canada, only a corporation (LTD., CORP., INC.), which is mostly the same thing. Now to your question - if your annual revenues exceed $50K, it would be beneficial to have a corporation. Additionally, as a client - I would always sue as many defendants as possible. In your example, if you send a contractor to me - I would definitely sue you as well. One more point for your consideration - depending on your relations with subcontractors, their status could shift to employment, or you could be responsible for their actions as a "general contractor" - this way or another, you should carefully review your operations. In any case, unless what you do is really small, few sales and low income without expectations of growth, I would definitely consider incorporating and would advise against a sole proprietorship.
THANK YOU EUGENE. I run a very small-scale business (I'm a dog breeder), and my sons are a part of the business as well (they both contribute financially in the daily operations). Up until now I haven't had a registered business name. I've been dealing with my customer base between them & myself using my name (and not a business name). I've been thinking about registering a business name, and was wondering : Do you think a corporation would be overkill for a small scale business like mine? I do have a concern that one day a customer may potentially come after me legally (although I haven't had any negative experiences in the past), and I don't want my house or my RRSP's to be up for grabs if things should turn sour. What are your thoughts on this?
John, we incorporate upon reaching 50K in profits, or working with partners, or having high exposure to liabilities. In your case, I do not know what "small scale" means, but if this is less than 40-50 of sales, I do not think it justifies incorporation on its own. In case your plan is to grow the business with the help of your sons, then it might be a good idea to incorporate to make sure each receives their portions and understand their responsibilities. with regards to legal suits, I do not foresee any exceptional exposures - the cost of a puppy+medicals+food and time lost if something happens is the most of your exposure.
Rod, a RE business is a bit complicated and you need to discuss it with an accountant to see how it will be taxed in the future. Overall, as your portfolio grows, I would suggest a holding structure: 1. A holding company that owns your properties (but does not rent them out to tenants). 2. A subsidiary company, which rents the properties from the holding company and then re-rents them to the actual tenants. This way if anything happens at the properties, which is not covered by an insurance, most of lawsuits will stop at the subsidiary company thus protecting your holding and the properties themselves from liabilities. BUT, once again - it is overly simplistic presentation and will require a proper tax planning with an accountnant.
A., there is no such thing as LLC in Canada (LLC is a US based type of corporation). IN Canada, it is a simple corporation (Ltd., Inc., Corp). Please email me to info@cbes.ca with your requirements and I will provide the price quote and explanation.
what if you are buying and selling physical goods on side for purposes of question, gross = 50k, profit is 25k, 9-5 job is 100k (not quitting): if side job is sole propriorship, 1. will it be taxed as 25k+100k salary? 2. will it be taxed as (capital gain?) 12.5k+100k salary? if incorporation, is it different? i dont see myself getting sued (knock on wood) or liability for business
Would It make sense to start a small business as a Partnership and change the type later on in the life of the business or would it make more sense to just open it as an Incorporated corp?
MIke, my personal opinion is that going with incorporation is a much better option out of two. There are too many variables that might change, which will be easier manageable in a corporation then a partnership. Additionally, even if registering a partnership will be a bit cheaper, you still will have to pay the cost of incorporation down the road + most probably costs of planning and tax reporting for the transition. The only situation where partnership, or even operating as two sole proprietorships (with a written agreement between you but without registering as a partnership) could be when you really are unsure of the business or your partner (whether you will be able to work together or not). Please also keep in mind that you will have to dissolve the partnership down the road, prepare a separate tax return, make some tax and legal planning of the dissolution - all of which will result in additional costs. Today the cost of incorporation is so low, that it makes sense to incorporate from the very beginning. I hope this helps, and good luck with your new business endeavors.
Hi, your partner in the corporation is essentially a shareholder along with you. First of all you should realize that shares represent a type of personal property and your partner can do whatever he/she wants with it. Second, it depends on the % of your shares in the corporation - this is the measure of control. Third, if you are the only one taking care of everything, you should be compensated for your work as a salary, that is in addition to your right for dividends in the future. And finally, you can simply offer to buy the partner out - offer a reasonable price for their shares .. Email me if you need more help with this. info@cbes.ca
I have a question which I am searching for it for a long time, I would really appreciate it if someone who has gone throw this guide me, please! So let's say I want to register a business as a partnership in Canada, Ontario Province but my partner is a non-resident of Canada or foreigner, in this case, can we both register our business as a partnership or Corporation under both of our names or not? I would really appreciate it if someone provide me an answer or information? Thanks in advance!!
amazing video! I have some questions and please answer when you have time. can I still file for any of these type of companies if I am under 18 years old? can a busssines owend by 1 person file for a corporation? If I want to have diffrent companies under the same bussines (umbrella brand)what choice would be good? Corporation? Thanks.
Hi Betty, actually it is a perfect timing as I am about to post some videos that will answer your questions... If you are under 18 years old, it would be problematic for many reasons, mainly due to you lacking the legal capacity to enter into legal agreements, and to act as a director of a corporation. A one person business is perfectly legal and accepted by the laws in Canada. One person will act as the shareholder, director and officer of the corporation in this case. A good choice, unless you have unlimited financial resources, is to start one corporation and operate several business operations/departments. Then, once the business proves as self sustainable, and you get more revenues, you can transition that "department" into a separate corporation. I am about to publish a video about holding companies, which will further "complicate" things :-)
so what if there are more than one people starting business together, in this case sole proprietorship will not work and corporation will be expensive to start & maintain vs partnership. What do you suggest in this case?
Ashish, in this case you have only two ways to go - a corporation or a partnership. I have to say that your assumption with regards to a corporation is partially incorrect (I have a video titled "the cost of incorporation" edited as we speak). This is not as costly as you think and is not too different from the costs of operating any other business with the similar volume of operations. In addition, a partnership poses its own complications and legal exposures that do not exist in a case of a corporation. While both options might work, I prefer a corporation in almost any situation possible. Please let me know if you need my assistance with incorporating your business and making any arrangements and shareholders agreement to protect each of you as partners in the business.
Hi, Your video is very knowledgeable 👍, Can u tell me - I'm 26 Years old... I want to start my own company in Canada.... So, what is the eligibility ? Funds required ? Is any experience needed ? ..... I'm not a PR or having citizenship .... Please suggest ,,, 🤔🤔🤔🤔🤔
Ayushi, my next video will answer your questions in full. Overall, the only mandatory requirement is to have a local director (in Ontario or federally, other provinces have different rules). There is no requirements for initial investment, and I can open a company with $1 of the investment. Other issues - the video will be posted next week :-)
It very much depends on what you are planning to make out of it. You have to take into account the cost of equipment, renovations, lease, licenses, advertising, purchase of the initial inventory (products) and more. There is a video that I've posted about opening a restaurant, so Stroganoff was the investment of 300K. But it was all-in for a small 60 seatings place. I think that less than $50K is not realistic (unless you plan something extremely small and basic)...
@@shoponkaptai6545 If you mean $200,000 CAD, then it should be more than enough for an average type of restaurant that does not require much renovations. Please keep in mind, that if you are a Canadian and have a Canadian credit history, you can lease most of the equipment instead of purchase, which will save you significant operating cash flow...
I am Bangladeshi, Now I work in Saudi Arabia. Minimum how much money invested to business in Canada?? Then i will can applicants for Canadian business visa? should I??
Andres, since operating as a sole proprietorship all your business income is personal and you have to report it as a personal income earned by a taxpayer in Canada, you should be a taxpayer, meaning to have a Social Insurance Number (SIN). To have such, you should be either a citizen, a permanent resident or foreign worker with a valid work permit. The situation is different with a corporation, where the corporation is the taxpayer and you are solely its shareholder...
Yes, you can. I've answered this question on multiple opportunities and will actually publish a video about this topic very soon. You have to obtain a proper tax advice about the transition, but it is absolutely doable and not too complicated at that...
![Noob To Max With DRAGON REWORK In Blox Fruits [FULL MOVIE]](http://i.ytimg.com/vi/LnBMOinoOvA/mqdefault.jpg)
I traveled 1 hour to see him for business advice. He seemed honest, knowledgeable and was very clear in his explanations. Now, I have a clearer direction and was saved from future costly mistakes. I highly recommend seeing him for a consultation if you have any questions or doubts. It's always better to see someone in person to get a better understanding on your unique situation.
Thank you Thaddeus, was nice meeting you too.
Very understandable and informative for those who wants to register their business in Canada.
thank you the 4 minute information I learned a lot what's kind and different business that exist and what are the functions .
I learned a lot, I can't wait when I have a moment to look and listening to your other educational RUclips business Channel.
Thank you Eugene, for your professional advice on starting my own business, and providing information about the three different business entities in Canada.
Very valuable information. Thank you for your work.
Amazing thank you so much for this brief but meaningful information
Great video. Thank you very much! I'm waiting for the next one!
Thank you so much, learning lots from your channel, man!
Thank your MrMawnster for your warm words. My idea is to help people that are looking for this information and can't find it in a simple, concise form...
thank you, good info, precise and concise
Good info, thanks for making vids.
Well explained. Thank you.
Hello Eugene, thank you for taking the time to put this up! I just had a question can I run 2 businesses under the same partnership. I know in the US but not sure for Canada.
Generally, yes. In most cases we would not limit what a partnership (or a corporation) can do, so multiple businesses are possible under one entity.
Good video! Can start my own business as an international student with a work permit? Thanks
Craig,
The answer isn't simple.
From the corporate legal perspective - absolutely yes. You can start your business as a temporary resident in Canada, all you need is a Canadian resident/citizen to be a director in the company.
The problem is - who will be operating the business? Since you are a student, your ability to work is somewhat limited (I'm not an immigration lawyer, but I understand there certain limitations).
So, if you are an international student in Canada, you should consult your immigration consultant before you start your business here.
If you have a partner in your business, and that person is a Canadian, then things could be easier.
Please let me know if you have any further questions.
What about the person who is on open work permit? After finishing studies as a international student?? And you said director should be Canadian so what percentage of shares he should be holding in company? Is there any minimum??
Business in Canada - Do it Right! What about the person who is on open work permit? After finishing studies as a international student?? And you said director should be Canadian so what percentage of shares he should be holding in company? Is there any minimum??
Very useful! Thanks!
Thanks for the valuable info
Hi Eugene, Thanks for putting up this video for all of us. Which entity should a business of online nature fall under with transactions happening all over the world ? What sort of compliance are required and taxes to be incurred ? Appreciate your guidance Cheers!
Manish, I am uploading three new videos as we speak, and recording a new one that should answer your question. It will be a detailed explanation of legal aspects of running an e-commerce business. I hope it will be up and running within the next 2-3 weeks.
@@businessincanada-doitright1822 Thanks Eugene. Much appreciated! Will it be possible for you to cover a model where consultation services are provided over internet irrespective of service provider and customer's geographical location ? Compliance on Canadian side for incorporation and if you could foresee any requirements on country of customer base. Just an overview. Cheers!
While filling the cic form what should we write in business activity for starting an general trading business.....cant find any word related to trade ,import or export
Try using "sale" or online sale. CIC uses "trade" as a "profession" and not as "sales", so you have to move away from "trading". Once you use "sale" or "sell", you will have lots of options to work with.
Good information
Hi Eugene. If I have a business where I bring in independent contractors to do work for clients, would it be safer to register as a sole proprietor or LLC? If the clients have a reason to sue, would they sue the independent contractors, or would they sue me? Thanks.
HI StatsGopher,
First of all, there is no LLC in Canada, only a corporation (LTD., CORP., INC.), which is mostly the same thing.
Now to your question - if your annual revenues exceed $50K, it would be beneficial to have a corporation.
Additionally, as a client - I would always sue as many defendants as possible. In your example, if you send a contractor to me - I would definitely sue you as well.
One more point for your consideration - depending on your relations with subcontractors, their status could shift to employment, or you could be responsible for their actions as a "general contractor" - this way or another, you should carefully review your operations.
In any case, unless what you do is really small, few sales and low income without expectations of growth, I would definitely consider incorporating and would advise against a sole proprietorship.
thank you its helpful
THANK YOU EUGENE. I run a very small-scale business (I'm a dog breeder), and my sons are a part of the business as well (they both contribute financially in the daily operations). Up until now I haven't had a registered business name. I've been dealing with my customer base between them & myself using my name (and not a business name). I've been thinking about registering a business name, and was wondering : Do you think a corporation would be overkill for a small scale business like mine?
I do have a concern that one day a customer may potentially come after me legally (although I haven't had any negative experiences in the past), and I don't want my house or my RRSP's to be up for grabs if things should turn sour.
What are your thoughts on this?
John, we incorporate upon reaching 50K in profits, or working with partners, or having high exposure to liabilities. In your case, I do not know what "small scale" means, but if this is less than 40-50 of sales, I do not think it justifies incorporation on its own.
In case your plan is to grow the business with the help of your sons, then it might be a good idea to incorporate to make sure each receives their portions and understand their responsibilities.
with regards to legal suits, I do not foresee any exceptional exposures - the cost of a puppy+medicals+food and time lost if something happens is the most of your exposure.
I have 2 rental properties. What entity would protect me from liabilities?
Rod, a RE business is a bit complicated and you need to discuss it with an accountant to see how it will be taxed in the future.
Overall, as your portfolio grows, I would suggest a holding structure:
1. A holding company that owns your properties (but does not rent them out to tenants).
2. A subsidiary company, which rents the properties from the holding company and then re-rents them to the actual tenants.
This way if anything happens at the properties, which is not covered by an insurance, most of lawsuits will stop at the subsidiary company thus protecting your holding and the properties themselves from liabilities.
BUT, once again - it is overly simplistic presentation and will require a proper tax planning with an accountnant.
Great overview. Very useful information.
We need an LLC in Canada.
A., there is no such thing as LLC in Canada (LLC is a US based type of corporation). IN Canada, it is a simple corporation (Ltd., Inc., Corp).
Please email me to info@cbes.ca with your requirements and I will provide the price quote and explanation.
Different types of incorporating - ruclips.net/video/L-ozifOj-Cc/видео.html
what if you are buying and selling physical goods on side for purposes of question, gross = 50k, profit is 25k, 9-5 job is 100k (not quitting):
if side job is sole propriorship, 1. will it be taxed as 25k+100k salary? 2. will it be taxed as (capital gain?) 12.5k+100k salary?
if incorporation, is it different?
i dont see myself getting sued (knock on wood) or liability for business
Would It make sense to start a small business as a Partnership and change the type later on in the life of the business or would it make more sense to just open it as an Incorporated corp?
MIke, my personal opinion is that going with incorporation is a much better option out of two. There are too many variables that might change, which will be easier manageable in a corporation then a partnership. Additionally, even if registering a partnership will be a bit cheaper, you still will have to pay the cost of incorporation down the road + most probably costs of planning and tax reporting for the transition.
The only situation where partnership, or even operating as two sole proprietorships (with a written agreement between you but without registering as a partnership) could be when you really are unsure of the business or your partner (whether you will be able to work together or not).
Please also keep in mind that you will have to dissolve the partnership down the road, prepare a separate tax return, make some tax and legal planning of the dissolution - all of which will result in additional costs.
Today the cost of incorporation is so low, that it makes sense to incorporate from the very beginning.
I hope this helps, and good luck with your new business endeavors.
Hi, How to get rid of the partner in the registered corporation? That sleeping partner never attended any meeting nor contributed to anything. Thanks
Hi, your partner in the corporation is essentially a shareholder along with you. First of all you should realize that shares represent a type of personal property and your partner can do whatever he/she wants with it.
Second, it depends on the % of your shares in the corporation - this is the measure of control.
Third, if you are the only one taking care of everything, you should be compensated for your work as a salary, that is in addition to your right for dividends in the future.
And finally, you can simply offer to buy the partner out - offer a reasonable price for their shares ..
Email me if you need more help with this.
info@cbes.ca
I have a question which I am searching for it for a long time, I would really appreciate it if someone who has gone throw this guide me, please!
So let's say I want to register a business as a partnership in Canada, Ontario Province but my partner is a non-resident of Canada or foreigner, in this case, can we both register our business as a partnership or Corporation under both of our names or not?
I would really appreciate it if someone provide me an answer or information?
Thanks in advance!!
What about LLC?
I produce music at home and sell music, would registering ones business as a sole proprietor be the best thing?
Inc. would be best suitable
amazing video! I have some questions and please answer when you have time.
can I still file for any of these type of companies if I am under 18 years old?
can a busssines owend by 1 person file for a corporation?
If I want to have diffrent companies under the same bussines (umbrella brand)what choice would be good? Corporation? Thanks.
Hi Betty, actually it is a perfect timing as I am about to post some videos that will answer your questions...
If you are under 18 years old, it would be problematic for many reasons, mainly due to you lacking the legal capacity to enter into legal agreements, and to act as a director of a corporation.
A one person business is perfectly legal and accepted by the laws in Canada. One person will act as the shareholder, director and officer of the corporation in this case.
A good choice, unless you have unlimited financial resources, is to start one corporation and operate several business operations/departments. Then, once the business proves as self sustainable, and you get more revenues, you can transition that "department" into a separate corporation. I am about to publish a video about holding companies, which will further "complicate" things :-)
so what if there are more than one people starting business together, in this case sole proprietorship will not work and corporation will be expensive to start & maintain vs partnership. What do you suggest in this case?
Ashish, in this case you have only two ways to go - a corporation or a partnership.
I have to say that your assumption with regards to a corporation is partially incorrect (I have a video titled "the cost of incorporation" edited as we speak). This is not as costly as you think and is not too different from the costs of operating any other business with the similar volume of operations.
In addition, a partnership poses its own complications and legal exposures that do not exist in a case of a corporation.
While both options might work, I prefer a corporation in almost any situation possible. Please let me know if you need my assistance with incorporating your business and making any arrangements and shareholders agreement to protect each of you as partners in the business.
Hi, Your video is very knowledgeable 👍, Can u tell me - I'm 26 Years old... I want to start my own company in Canada.... So, what is the eligibility ? Funds required ? Is any experience needed ? ..... I'm not a PR or having citizenship ....
Please suggest ,,, 🤔🤔🤔🤔🤔
Ayushi, my next video will answer your questions in full. Overall, the only mandatory requirement is to have a local director (in Ontario or federally, other provinces have different rules).
There is no requirements for initial investment, and I can open a company with $1 of the investment.
Other issues - the video will be posted next week :-)
Thanks for your great generosity 💯👍....
Your support helps me to take further decision... 👍💯
Really helpful - amazing info
Eugene, where are you from? Are you from Brazil?
Nope, Russian, Ukrainian.
@@businessincanada-doitright1822 because the accent sounded like Brazilians speaking English for me haha Thank you
👍👍👍👍
How to start restaurant business in Canada? How much money need to invested restaurant?
It very much depends on what you are planning to make out of it. You have to take into account the cost of equipment, renovations, lease, licenses, advertising, purchase of the initial inventory (products) and more.
There is a video that I've posted about opening a restaurant, so Stroganoff was the investment of 300K. But it was all-in for a small 60 seatings place.
I think that less than $50K is not realistic (unless you plan something extremely small and basic)...
minimum 200000 lak Canadian dollar . can I start to restaurant business in Canada?
@@shoponkaptai6545 If you mean $200,000 CAD, then it should be more than enough for an average type of restaurant that does not require much renovations.
Please keep in mind, that if you are a Canadian and have a Canadian credit history, you can lease most of the equipment instead of purchase, which will save you significant operating cash flow...
I am Bangladeshi, Now I work in Saudi Arabia. Minimum how much money invested to business in Canada?? Then i will can applicants for Canadian business visa? should I??
What is the condition for Canadian business visa? How i will do application? as a Bangladeshi citizens.
Do I need to be a canadian citizen to start a sole proprietorship?
Andres, since operating as a sole proprietorship all your business income is personal and you have to report it as a personal income earned by a taxpayer in Canada, you should be a taxpayer, meaning to have a Social Insurance Number (SIN). To have such, you should be either a citizen, a permanent resident or foreign worker with a valid work permit.
The situation is different with a corporation, where the corporation is the taxpayer and you are solely its shareholder...
@@businessincanada-doitright1822 thank you very much for your timely response, cheers. 👌🏼
can you switch from Sole Proprietor to a Corporation ?
Yes, you can. I've answered this question on multiple opportunities and will actually publish a video about this topic very soon. You have to obtain a proper tax advice about the transition, but it is absolutely doable and not too complicated at that...
Istf😁😂
пасиба
Not well explained.