# incorporation two provinces



## riamo (Jun 18, 2009)

Hello,

I am self-employed and am strongly considering incorporating because of the tax advantages. I am currently in Saskatchewan where I am renting a place until August. I also do part-time work in Alberta but am doing 90% of my work in Saskatchewan at this stage. Come August next year I will move back to Alberta where I still have a residence and will starting working full time in Alberta.

I was wondering if it would be possible to get incorporated in Alberta now and start saving money. The companies I work for here in Saskatchewan could write out cheques to my incorporation in Alberta - is this allowed?

thanks!


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## kcowan (Jul 1, 2010)

riamo said:


> Come August next year I will move back to Alberta where I still have a residence and will starting working full time in Alberta.


If this Alberta residence is not occupied, then you can declare it as your principal residence. That determines your province of residence. Where you incorporate would be made for other reasons.


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## riamo (Jun 18, 2009)

my parents currently occupy my residence.

what determines what province you can incorporate in?


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## MoneyGal (Apr 24, 2009)

You should get advice beyond this forum. 

For very general purposes, here's some basic info:

You may want to consider federal incorporation. That way, you can carry on business in any province. However, it is more expensive to set up AND to maintain (you must keep up-to-date with filings in all provinces). 

Generally speaking, if you incorporate provincially, your corporation only has the right to carry on business in the province or territory where your business is incorporated. So, as a general rule, if you incorporate in Alberta, you would not be entitled to carry on business in Saskatchewan. 

You could incorporate in both provinces. 

Or, you could register a corporation in Saskatchewan, and then register your existing corporation in Alberta (which gives you the right to carry on business in Alberta - this is called "extra-provincial incorporation").

Here is a web link from Alberta which describes extra-provincial incorporation for corporations formed outside of Alberta but who wish to carry on business in Alberta: 

http://www.servicealberta.ca/713.cfm


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## kcowan (Jul 1, 2010)

I incorporated in Ontario. Then I moved to BC after 3 years. I continued to use my federal GST number assigned in Ontario for another 8 years. But my residence for tax purpose changed the years I moved. I have no idea whether this was legal but it worked for me and I continued to bill to that GST number.

It might be more complicated with HST.


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## Young&Ambitious (Aug 11, 2010)

Hey,

You should read up on Permanent Establishment rules: http://www.cra-arc.gc.ca/E/pub/tp/it177r2-consolid/it177r2-consolid-e.html. 

For the current year where you have income from multiple jurisdictions for your annual taxes you'll be using form T2203 as "you resided in a province or territory on December 31, 2009 (or the date you left Canada if you emigrated from Canada in 2009), and all or part of your business income for the year was earned and is allocable to a permanent establishment outside that province or territory, or outside Canada"; the form is available at: http://www.cra-arc.gc.ca/E/pbg/tf/t2203/

You can also have seperate HST accounts by province if you'd like. More information and the form to do so is here: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/rgstrng/pnngbrnchs-eng.html.

Those should give you some insight. Goodluck


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