Thanks Joe. Curious if it is common or ever advisable to begin as a sole proprietor, and then incorporate that business down the line when it makes financial sense?
Yes, it can definitely be a worthwhile avenue. A great use case for this is if you are going to keep your day job and start the business on the side. If you have some losses in your business, you can apply those losses against other income in the year they are incurred. With a corporation, you would have to wait until you have profit to offset them against. Lots of other reasons to wait as well, but mainly you can incorporate any time and use a Section 85 rollover to bring assets and goodwill into the corporation on a tax-deferred basis.
Hi Joe. I love your videos. Can the liability issues be solved with good commercial insurance instead of registering a corporation? Many of my clients want to incorporate because they are afraid of lawsuits.
@@nathaliecarrier7164 I am not a lawyer or a insurance agent, but I think it's advisable to speak to each of them before incorporating. I think many business can reduce risk through insurance rather than incorporation for sure.
Thank you for your videos, they are very helpful. I'm setting up my payroll program for my first business, but I don't know if I should consider ourselves (two owners, listed as President and Vice-president) as employees? We would like to get paid a salary in the future, but we will start with dividends once we get profits.
If I'm a sole proprietorship, do I have to register a business (if I'm just starting out) if I start a print-on-demand ecommerce website with a made up name which is not yet registered in the business registry and is not related to my personal name or intials?
Hey! If you're looking for a bit of guidance as you're starting out a business I'd recommend checking out our new 7 Day Business Starter Course. We walk you through all the steps of starting a business, from planning and getting registered to sorting out your finances, promoting your brand with the right marketing strategy, and scoring that first sale. Here's a link to our free training if you're interested. This would be a great place to start to get answers to common questions people have when launching a business. www.avalonacademy.ca/watch-the-seven-day-business-starter-free-training
Thanks Joe. Curious if it is common or ever advisable to begin as a sole proprietor, and then incorporate that business down the line when it makes financial sense?
Yes, it can definitely be a worthwhile avenue. A great use case for this is if you are going to keep your day job and start the business on the side. If you have some losses in your business, you can apply those losses against other income in the year they are incurred. With a corporation, you would have to wait until you have profit to offset them against.
Lots of other reasons to wait as well, but mainly you can incorporate any time and use a Section 85 rollover to bring assets and goodwill into the corporation on a tax-deferred basis.
Hi Joe. I love your videos. Can the liability issues be solved with good commercial insurance instead of registering a corporation? Many of my clients want to incorporate because they are afraid of lawsuits.
@@nathaliecarrier7164 I am not a lawyer or a insurance agent, but I think it's advisable to speak to each of them before incorporating. I think many business can reduce risk through insurance rather than incorporation for sure.
Thank you for your videos, they are very helpful. I'm setting up my payroll program for my first business, but I don't know if I should consider ourselves (two owners, listed as President and Vice-president) as employees? We would like to get paid a salary in the future, but we will start with dividends once we get profits.
If I'm a sole proprietorship, do I have to register a business (if I'm just starting out) if I start a print-on-demand ecommerce website with a made up name which is not yet registered in the business registry and is not related to my personal name or intials?
Hey!
If you're looking for a bit of guidance as you're starting out a business I'd recommend checking out our new 7 Day Business Starter Course.
We walk you through all the steps of starting a business, from planning and getting registered to sorting out your finances, promoting your brand with the right marketing strategy, and scoring that first sale.
Here's a link to our free training if you're interested. This would be a great place to start to get answers to common questions people have when launching a business.
www.avalonacademy.ca/watch-the-seven-day-business-starter-free-training