# Incorporating questions



## Banalanal (Mar 28, 2011)

I have some incorporating questions if anybody has the time and knowledge to help me out please.

I am thinking of incorporating my small business.

1.I'm thinking of buying a new truck but I don't drive as part of my business at all. Does it make sense to just buy it personally or have the corp buy it?

2.I'd like to invest in an off shore hedge fund. Does it make sense to have the corp invest the money or me personally?

3.If I pay myself dividends from the corp to live on, and I want to dissolve the corp in 5 years. How do I get the money/assets out?

4.Can I transfer personal funds to the corp?

5.Does it matter if the corp and I each own the same publicly listed companies?

6.The corp has a good reason to try and grow its money to become a more successful enterprise, using those funds to increase business. Can I invest its funds and be taxed at the lowest possible capital gains tax?

7.What do you look for in a good small business accountant? I'm guessing they are not all as good as the next so how does one fine a highly skilled one?

Thanks if anyone has the time.


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## Charlie (May 20, 2011)

Banalanal said:


> I have some incorporating questions if anybody has the time and knowledge to help me out please.
> 
> I am thinking of incorporating my small business.
> 
> ...


see RED for answers....


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## Banalanal (Mar 28, 2011)

Charlie said:


> see RED for answers....



4. If I transfer funds to the corp, my personal funds that are after tax dollars, can I take those funds out of the corp at some point without paying taxes on them?

6. In regards to 6, isn't there a tax rate for corps that is very low on capital gains if the proceeds are used to grow the business? As in the corp buys a stock, sells it, and the tax on those gains are very low?


Thanks for the help.


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## Greenback (Mar 16, 2013)

RE: #4 - A recent conversation with an accountant informed me I was able to take out as much money as I put into it, tax-free.
In my case I had transferred property that had an appraised value transferred to the company many years ago.
The company has subdivided it and sold lots. I am now in a position to take that initial start-up value out.


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## Banalanal (Mar 28, 2011)

Very interesting to know. Thanks for the post. I welcome any other info regarding my questions.


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## MoreMiles (Apr 20, 2011)

I think it's a bad idea mixing personal and corporate funds. You never know if CRA will treat certain transactions certain ways.... So unless you really have to, do not keep depositing and withdrawing funds. Are those income from sales or loans? Did you file a Section 85 Rollover (google it). For liability issue too, your personal asset will be at risk if you place it in a corporation.


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## kcowan (Jul 1, 2010)

Item #4 is usually accomplished with share purchase or shareholder loan.


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## james4beach (Nov 15, 2012)

Not to intrude on the original poster's thread but I also have a question about setting up a corporation. I used to have a business years ago, but dissolved it when I became a regular salary man at a big company.

Recently the opportunity has popped up for me to sell one of my products again. I would strongly prefer to set up a corporation and do the sales through it. The question is, how fast can a corporation be established? (One month?) And yes, I am willing to pay for legal assistance in doing this very properly.


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## Greenback (Mar 16, 2013)

You can incorporate online and it might actually be faster than finding and getting an appointment with a lawyer to do something you may be able to do yourself.
Corporations Canada:
http://www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs03988.html


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## oedema (Jan 1, 2012)

you can set it up in one day. If its just you as the shareholder really no need to involve a lawyer


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## MoreMiles (Apr 20, 2011)

oedema said:


> you can set it up in one day. If its just you as the shareholder really no need to involve a lawyer


10 minutes! according to the NEBS web site.. it seems good enough for DIY.

http://ww.nebs.ca/start/business_services.php


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## james4beach (Nov 15, 2012)

Thanks everyone for the useful information!


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## NorthKC (Apr 1, 2013)

Use Cyberbahn. Waay cheaper than paying the government!


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