Incorporating A Business

[mhaytuazon]

Hi there,

Can anyone help me on how to incorporate a business? I already have a business name set up with the province, but what do I do after that? Do I have to be earning income first before I can actually incorporate another business entity to work under my primary business name? How does this thing really work?

Please help,
Mhay

 

[Thomas Beyer]

first ask yourself: WHY INCORPORATE ?

save taxes ? reduce liability ? employ a spouse ?

then, get a name, then structure the share ownership, then appoint a director, then incorporate via a corporate lawyer or online (e.g.: www.arvic.ca ) .. then inject some cash into the business

 

[KeenanTameling]

Hi Mhay,

My advice:
Its is best to have a lawyer walk you through it. It will save you a lot of time and headache. You must be clear on why you are doing it. Also talk to your accountant, these are important people on your power team and don`t be afraid to use them for their advice. As an investor your treatment of your property is very different within a company verses in your own name.

Keenan

www.LibertasHoldings.com

 

[mhaytuazon]

Thanks so much, Keenan & Thomas. Both your advices were very helpful. Now my question is, where do I find a good quality real-estate-based lawyer? Do I post an ad for that? Or do I search the yellow pages? I`m just a beginner here so I obviously don`t know a lot about the legal stuff, or where to find it to begin with.

I`d greatly appreciate all the help I can get. I`m like a baby crawling who`s now starting to learn to walk. So I truly am thankful to those who are willing to guide me

!

Sincerely,
Mhay

 

[Thomas Beyer]

who shall own this corporation ? you ? your wife ? your kids ?

what is the purpose ?

what assets / business will it own ?

what revenue / year roughly ?

are the costs, initially and ongoing, worth the benefits ?

 

[Calicbv]

Hi Mhay,
You should steel go beck to questions that Thomas and Keenan suggested:
review reasons and benefits of incorporating in present stage of your business.
Regarding lawyers. Since "corporation law" is very specific field, you should find
lawyer that is specialized in this area, and who will help you during this process.
For my Incorporation needs, I use Lyndon Thiessen @Ritchie Mill Law Office,
and I am pleased with their service.
Regards.
Branko

 

[MikeMcCrae]

Find a mortgage broker and talk about your plan. That will help in deciding when and if incorporation is needed. Also you would likely want a lawyer fairly close by where you live or work. It adds to convienience for signing documents. Ask your realtor to recommend a couple lawyers and then talk to them.

 

[mhaytuazon]

QUOTE (MikeMcCrae @ Feb 5 2008, 01:10 PM) Find a mortgage broker and talk about your plan. That will help in deciding when and if incorporation is needed. Also you would likely want a lawyer fairly close by where you live or work. It adds to convienience for signing documents. Ask your realtor to recommend a couple lawyers and then talk to them.


Hi Mike,

Thanks so much! I actually know a couple of realtors so I`m definitely going to ask them. I hadn`t thought of that, thanks a whole bunch!!!

Sincerely,
Mhay

 

[ekisielewski]

QUOTE (mhaytuazon @ Feb 5 2008, 11:31 AM) Hi Mike,

Thanks so much! I actually know a couple of realtors so I`m definitely going to ask them. I hadn`t thought of that, thanks a whole bunch!!!

Sincerely,
Mhay

Hi Mike: if you are just starting you more likely do not need to incorporate. You can own many properties before incorporating. Some people own 30 + under their personal name. There is a false belief that you need a company in order to invest in Real Estate. I would recommend you educate yourself by reading some books on RE investing.
Good Luck
Elisabet K.

 

[MikeMcCrae]

You certainly don`t need to incorporate in most cases. But there are times when it is an advantage. As always it goes back to your plan. Sometimes if you have certain credit issues a company can make you life so much easier.

 

[Manjula]

Mhay,

Lots of great answers in this thread. It certainly helped me to talk to my mortgage broker, Jas Grewal with The Mortgage Centre (416-410-9905). He`s a REIN member and has a law degree as well! Though you will need to engage a lawyer at some point (let me know if you need a recommendation here) I agree with the above posts that a broker can be a good start.

After all those conversations if you do decide to incorporate, here`s some info my brother forwarded on to me, he incorporated his consulting company this fall:

"I would suggest reading through this guide:
http://strategis.ic.gc.ca/epic/site/cd-dgc...de_2007_Eng.pdf
In terms of actually incorporating the business, they can try using either of these 2 links:
http://www.oncorp.com/home/services_incorporation.asp
http://www.bestontario.com/web/en/
I would strongly recommend consulting an accountant before incorporating as they can advise you up front how to structure the company in an optimal manner with respect to taxes, etc."

See you Tue at the REIN meeting!
Manj

 

[mhaytuazon]

QUOTE (MikeMcCrae @ Feb 5 2008, 01:58 PM) You certainly don`t need to incorporate in most cases. But there are times when it is an advantage. As always it goes back to your plan. Sometimes if you have certain credit issues a company can make you life so much easier.


Thanks so much! I actually read some materials regarding the advantages (& disadvantages) of incorporating that`s why I`m trying to find out how to go about doing it. Thanks a whole bunch!

Mhay

 

[mhaytuazon]

QUOTE (Manjula @ Feb 6 2008, 02:16 PM) Mhay,

Lots of great answers in this thread. It certainly helped me to talk to my mortgage broker, Jas Grewal with The Mortgage Centre (416-410-9905). He`s a REIN member and has a law degree as well! Though you will need to engage a lawyer at some point (let me know if you need a recommendation here) I agree with the above posts that a broker can be a good start.

After all those conversations if you do decide to incorporate, here`s some info my brother forwarded on to me, he incorporated his consulting company this fall:

"I would suggest reading through this guide:
http://strategis.ic.gc.ca/epic/site/cd-dgc...de_2007_Eng.pdf
In terms of actually incorporating the business, they can try using either of these 2 links:
http://www.oncorp.com/home/services_incorporation.asp
http://www.bestontario.com/web/en/
I would strongly recommend consulting an accountant before incorporating as they can advise you up front how to structure the company in an optimal manner with respect to taxes, etc."

See you Tue at the REIN meeting!
Manj

Hi Manj,

Thanks so much for the links! I`m definitely going to check them out. I`ll see you Tuesday! Have you got a business card yet?

Mhay