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Corporation & Business Registration

Welcome to Can4 Tax & Accounting – Your Partner in Business Growth!

Starting a business is an exciting journey, and we’re here to guide you every step of the way. Whether you’re just starting or looking to scale, we have the tools, expertise, and resources to help you succeed. At Can4 Tax & Accounting, we specialize in providing comprehensive services tailored to startups and entrepreneurs who are ready to turn their vision into reality.

Types of Business Structures

1. Corporations

  • Standard Corporations:
    • Ontario Corporation: A corporation registered specifically in Ontario, handled through the Ontario Business Registry.
    • Federal Corporation: A corporation registered at the federal level, allowing the business to operate across Canada with name protection.
    • Provincial Corporations: Corporations incorporated in provinces like BC, Alberta, etc., following provincial laws.
    • Extra-Provincial Corporations: Corporations incorporated outside Ontario but wishing to operate within the province.
  • Professional Corporations:
    Created for regulated professionals (doctors, lawyers, accountants, etc.) wishing to incorporate under a professional regulatory framework.
  • Holding Companies:
    A company set up to hold assets or manage investments. Available in Ontario and other provinces.
  • Co-operatives:
    Corporations formed by groups of people with shared interests, typically in sectors like agriculture, retail, or housing. Available both federally and provincially.
  • Special Corporations:
    • Benefit Companies: Corporations in BC with a social or environmental mission.
    • Real Estate Corporations: Incorporation specific to real estate professionals, following Ontario or BC regulations.

2. Non-Profit Organizations

    • Federal Non-Profit Incorporation:
      Establish non-profits or charities at the federal level to meet national requirements.
    • Provincial Non-Profits:
      Non-profits registered under provincial laws such as in Ontario, BC, and Quebec.

3. Sole Proprietorship & Partnerships

  • Sole Proprietorship:
    A simple business structure owned and operated by one individual, often registered in Ontario, Alberta, or BC.
  • Partnerships:
    • General Partnerships: Shared ownership and responsibility between two or more individuals.
    • Limited Partnerships: A partnership where some partners have limited liability, suitable for investors without operational involvement.

Understanding Business Taxes and Structures in Ontario

In Ontario, businesses can be structured in several ways depending on your venture’s needs. Below are the most common business structures:

1. Sole Proprietorship:

  • Simple to set up and manage with minimal costs.
  • Personal liability: The owner is personally responsible for all business debts.
  • Business income is reported on your personal tax return.

2. Partnership:

  • Owned by two or more individuals or entities.
  • Profits are divided among partners and taxed as personal income.
  • Types: General (all partners share liabilities) and Limited (partners have limited liability).

3. Corporation:

  • A separate legal entity from its owners, offering limited liability protection.
  • Requires formalities such as incorporation and annual filings.
  • Profits are taxed at the corporate level, and owners are taxed on salaries or dividends.

4. Co-operative:

  • Owned and controlled by its members, who use its products or services.
  • Operates on a democratic principle (one member, one vote).

5. Non-Profit Organization:

  • Operates for a mission rather than profit and may be eligible for tax-exempt status.

Taxation Overview in Ontario

  • Sole Proprietorship: Income is taxed on your personal return at progressive tax rates.
  • Corporations:
    • Small business tax rate (12.2% on the first $500,000 of active business income).
    • General corporate tax rate (26.5% on income over $500,000).

Choosing the Right Business Structure

The appropriate structure depends on factors such as liability concerns, taxation needs, and long-term growth goals. We help you make an informed decision based on your unique situation.

Post-Registration Filings and CRA Accounts

Common Post-Registration Filings

  1. Obtain Business Number (BN) Register your business with the Canada Revenue Agency (CRA) to get a unique Business Number (BN), which is necessary for all business tax filings.
  2. Corporate Tax ID Setup Set up a corporate tax account with the CRA to manage your business’s tax obligations.
  3. Mandatory Initial Return Submit your corporation’s mandatory initial return to ensure it remains in good standing with the Ontario Business Registry.

Other CRA and WSIB Account Set Up

  1. Set Up HST Account If your business earns over $30,000 annually, you’ll need to register for an HST/GST account to collect and remit sales tax.
  2. Set Up Payroll Account Register for a payroll account if you have employees, to manage deductions like income tax, Canada Pension Plan (CPP), and Employment Insurance (EI).
  3. Set Up Export Account If your business involves exporting goods or services, you need to set up an export account with the CRA.
  4. Set Up Import Account If your business imports goods, you need to set up an import account with the CRA.
  5. WSIB Account Registration If you have employees in Ontario, register with the Workplace Safety and Insurance Board (WSIB) for worker’s compensation and insurance coverage.

This organization ensures a smooth flow of tasks to complete after registering your corporation. It covers everything from tax registrations to compliance with worker’s compensation, helping your business stay organized and legally compliant.

Search Reports & Corporate Records

  • Nuans Report: A name search to ensure a business or trademark name is unique.
  • Corporate Profile Report: Detailed info on an existing corporation.
  • Certificate of Status: Verifies the corporation is in good standing with the Ontario Business Registry.
  • Company Key: A unique identifier for Ontario businesses, required for provincial government transactions.

Support Services

  • CRA My Account Assistance: Help businesses set up and manage their CRA accounts.
  • Master Business License (MBL): Register and renew MBLs for sole proprietorships or partnerships operating under a business name.
  • Extra-Provincial Registration: For businesses incorporated outside Ontario but wish to operate within Ontario.

Filings & Amendments

  • Notice of Change: Update business information like address or director changes.
  • Annual and Initial Returns: Necessary filings to maintain a corporation’s good standing.
  • Dissolution: Officially close a business and avoid ongoing obligations.
  • Name Change: Legally change a corporation’s name via Articles of Amendment.
  • Amalgamation: Combine corporations into a single entity.
  • Continuance: Move a corporation’s jurisdiction (e.g., from provincial to federal).

Tax Account Registration

  • Business Number (BN) Registration: A unique identifier required for tax purposes.
  • HST and Payroll Accounts: Setup for businesses that exceed the $30,000 revenue threshold or have employees.

Small Business Deduction (SBD)

The Small Business Deduction (SBD) allows eligible Canadian-controlled private corporations (CCPCs) to reduce their federal and provincial corporate income taxes on active business income.

  • Eligibility: Must be a CCPC, controlled by Canadian residents.
  • Benefits: Offers a reduced federal tax rate of 9% on the first $500,000 of active business income.
  • Limitations: The SBD applies to a portion of active business income and is phased out based on taxable capital.

How We Work

  1. Consultation: We begin with a free consultation to understand your business needs.
  2. Customized Plan: Based on your input, we create a detailed, tailored plan.
  3. Execution: Our team works alongside you to implement the plan.
  4. Ongoing Support: We offer continuous support as your business grows.

Can4 Tax & Accounting – Your Partner in Success

We’re dedicated to helping you with:

  • Simplified Business Registration: Streamline your registration process with our user-friendly platform.
  • Expert Tax Guidance: Receive detailed tax advice and tools to ensure compliance.
  • Ongoing Support: Our team will help you choose the best structure for your business and assist with any questions along the way.

Ready to get started? Let us help you launch and grow your business with ease.

Can4 Tax & Accounting Inc.