There are many reasons to operate your business as a corporation. In Canada, the tax rate on corporations is lower than the tax rate for individuals. Given the range of benefits, nearly all businesses choose to incorporate at some point.
At MASTERTAX we provide complete Ontario / Canada Incorporation Services. We offer high quality corporate supplies including Corporate Seals, Share Certificates, Articles of Incorporation, Certificate of Incorporation, Leather Corporate Kits, Legal Seal and more. A corporation brings you two major benefits. You will be protected against personal liability for business debts and obligations and your corporate name will be protected all over Canada. We also offer Business registration for:
- Individuals – Sole Proprietorship,
- Partnerships, (2 or more individuals)
- Ontario Charity Registration
- Non Profit Organization
- Payroll Accounts
- Ontario W.S.I.B Registration
- Business GST/ HST accounts
SOLE PROPRIETORSHIP: When an individual sets up a personal business and is taxed as self-employed.
ADVANTAGES OF SOLE PROPRIETORSHIP: The individual is in control of the business and all decision making, receives all profits of the business and responds to its tax obligations with the Canada Revenue Agency.
PARTNERSHIP: A partnership is where two or more individuals are partners in the business (eg. 25%, 50%, etc.). They receive all profits of the business and responds to its tax obligations with the Canada Revenue Agency.
ADVANTAGES OF PARTNERSHIP: A partnership allows partners to share the expenses and profit of the business (usually 50% / 50%). It all depends on the business structure.
CORPORATIONS:(Federal or Provincial) A Corporation is an independent legal entity, that is separate and distinct from the people who own, control, and manage it. In other words, corporation and tax laws view the corporation as a legal “person” that can enter into contracts, incur debts, and pay taxes apart from its owners. In Canada, there are two ways to incorporate it: either federally, or in the Province or territory you live in.
ADVANTAGES OF INCORPORATION: Generally, a Canadian Controlled Private Corporation (CCPC) pays a much lower rate of federal tax. Also a corporation’s shareholders are not liable for any debts incurred or judgments handed down against it. Shareholders only risk their equity in the corporation. And Corporations may be able raise additional funds by selling shares in the corporation.
CHARITY ORGANIZATIONS:There are three types of registered charities in Canada. The designation a charity receives depends on its structure, its source of funding, and its mode of operation. Every registered charity is designated as a:
- Charitable Organization;
- Public Foundation, or
- Private Foundation.
NON FOR PROFIT: The Canada Not-for-profit Corporations Act provides federal not-for-profit corporations with a new set of rules that are modern, flexible and better suited to the needs of today’s not-for-profit sector. We can help you register a Non-for-Profit Corporation with the Canadian government.
PAYROLL ACCOUNT: A payroll program account is an account number assigned to an employer or trustee when you have employees and you need to pay them and report deductions with the Canada Revenue Agency.
IMPORT / EXPORT: This account is set up for companies in Ontario that will operate in this industry.
W.S.I.B ONTARIO: Most businesses in Ontario must register with the WSIB within 10 days of hiring their first worker. PLEASE NOTE: If you do not work in the CONSTRUCTION INDUSTRY you are not automatically eligible for WSIB coverage and you may apply for Optional Insurance.
GST / HST BUSINESS ACCOUNT: Most businesses have to register for GST / HST number and individuals and organizations engaged in commercial activities in Canada who have worldwide, taxable sales of more than $30,000 must register for and collect the Harmonized Sales Tax (HST).
At MASTERTAX we are here to help you. If you have questions, call today at Tel. 647-229-0343.