Hello All
Can somebody please spare a few minutes and share some information on following points?
1. If the annual income of a person doing business exceeds 30000, is he supposed to register the firm even if none of business sales are to a Canadian clients?
2. If yes, is there any website that details the procedure of registration and what is involved in it?
3. If one does register a firm, say in Nov. and would like to start yet another different business venture in Nov itself, is it possible to move some of the capital form first firm to second for start up purposes? In other words to write off a part of the income as cost of start up of 2nd business.
Will greatly appreciate any feedback form CDs.

I think the answer to first question is Yes but maybe other CDs can express better.

If I am not wrong (and I might be though!), the 30,000 figure is for registration for GST. And I also think that if all of the sales are non-domestic, one is exempt from registering (atleast that used to be the case in Singapore and similar logic should apply here).

I could not clearly understand the question no 3. But from what I could understand, I would say, NO. If you are creating a new company, it will be an investment into the new co from old one and not an expense. The start up costs will be expense of the second company, but I think in Canada that amortization is not a tax deductable expense.

Chandresh

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Chandresh

Advice is free – lessons I charge for!!

Thanks for the messages Chandresh. Appreciate your time.
According to Rev Can, you need to get a Business number plus register with provincial govt as soon as your business income reaches 30000. This is income, not net income and also has to be doen whether you sell in canada or not.
So essentially the moment one goes over 30 K, one has to register.
Now, can somebody please explain me how ot proceed regarding following 2 points:

1. How difficult is to get inc.? What are implications? Do I need to get and issue all checks in company name? Maintain a different account?
2. Who should I see regarding accounting? Are there any special catagories of accountants that deal with this stuff and how much they charge in general for straight forward book keeping and advice etc.
3. Any tax saving tips......

anyone?

I think you need to contact a certified accountant or someone like that to create and maintain books.
Perhaps Chandresh or some other senior CD can advise you better where to start from

any idea how much it will cost to hire a certified accountant or someone like that for consultation and doing the work associated with incorporating ???
I guess there must be many CD's who can tell