Incorporating a Business in Canada: Corporation vs. Sole Proprietorship

Nice video Jessica. I just recently got a job which states on the letter of employment that I am an independent contractor. The job pays 6600CAD per month. I also just started a 9 to 5 which pays 90k per annum. I am really confused on what to do. Some people have advised me to do a sole proprietorship while some have said I should incorporate. Which will I go for based on my circumstances.

This was incredibly helpful and to the point in a way that was easy to understand. Thank you so much!

Grocery business is sole proprietorship or Corporation?

My husband (he is a filmmaker) says your lighting in the video is “too good” 😊😅

thank you for all the information. it helped much much more than any other resources I was relying on. Very clear, easy to understand and joyful to watch you. thank you again

You mentioned that the general rule of thumb is that if your business is earning 100,000+ it may make sense to incorporate.
At this time I am making more than that from my regular job and side hustle combined.
Would you incorporate only based on the business or a combination as tax brackets can get quite high.

Great info. Just a side note from someone who works in corporate law and worked in bankruptcy for over 12 years- when someone sues the corporation, they also add the director of the corporation to the suit. I always thought there was protection with an incorporation but not as much as people think. I guess maybe larger corporations but as a person with a corporation, you are most likely the director. Love the lighting by the way.

I subscribed half way through this video. Exactly what I was looking for

This was SUPER helpful. Also I love the lights, and your personality is really easy to learn from! Thanks!

Hi Jessica,

I am thinking of opening an Etsy shop selling digital wedding invitations. I have already opened my shop and I'm working on my designs. Do I really need to open a sole proprietorship? And now if my business doesn't make much sales? Isn't that a waste of time and money to do that? And If it's a good route to do the sole proprietorship after the 5 years do I need to renew it, or how does that work? I live in Ontario, Canada

Jessica you're amazing!
Thanks for sharing 🌹

Hey Jessica,

I’m an apprentice carpenter and I am doing small projects as a side hustle and I am wondering if I can be a sole proprietor? I won’t do any jobs that are high risk or require permits and/or structural and I will get insurance for myself? Need to do research on that. Seems like a gray area because construction can be super high risk. But I will have a lot of business expenses in the first year or two because of tool costs. What do you think about carpentry as a side hustle?

Great vid.

What are the costs associated with incorporating? I know it's about $1500 ish when setting up, but are there additional annual charges I don't know about. I'm literally in the process of incorporating, and wish I watched this video first :) Thank you!

Thank you! Finally someone who makes sense. I did studied Biz accounting but did not finish. I know we have Sole prop, partnership & corp. I kept seeing LLC & S corp and i was so confuse 😅😂.thank you!!

Thank you this was super helpful! I was struggling with deciding between starting out in corporations vs. solo, and corporations seemed overly complex to Me, so this was very well explained and heloed me differentiate between the terms! 5hank you so so much!

Would be helpful to talk about what the expenses are for a corporation which don’t effect sole proprietorship.

HI, Thanks for all your videos. I just wish I would have found them sooner!

I have incorporated my business but really think I shouldn't have. How do you suggest I determine if it is worth it to dissolve my corporation and resume my business as a sole-proprietor?
Thanks in advance for any suggestions:)

Completely outstanding presentation. Thank you so much

Is this as having a business registration number?

What about if you have a full time job with a good salary? Does it make sense to add more money to your yearly income?

Hey! I have a question. Can you name and register a company with numbers but without the Canada at the end of the name? For example: can you a name company 11111122 INC. instead of 11111122 CANADA INC. ? Would that be possible?

Thank you that was helpful

This is so helpful! And I remember that business! Rich and fit challenge!

I use Momenteo for accounting software ;-)
Really helpful and it made it easy for me to decide

Very informative!!

Jessica, I trully apreciate the information. Quick question, if you switch from a sole prop. to a corporation, will I lose all my business credit and credit history for cards and tradelines from the sole prop.?

Thanks for this information ❤

Thank you so much

Thanks so much for this. I was wondering if you know anything about dissolving a corporation. I started one, but have not used it and think its best if I dissolve it. I was at a stalemate was not sure what to do, but your video helped confirm it.

Thank you Jessica for all the info! I was about to download the budget spreadsheets that you mentions are free on your website but they are $32 each, could you please confirm?

thank you so much was able to register my company after watching this video. God bless you

Thank you a lot, you changed my decision , Jessica

very useful content! your video appears as an extra content on my finance course at University of Niagara Falls

Hello! I really hope you read this message, I have been following you for a while and I am looking for an accountant to help me with my recently launched sole proprietor company as well as real estate since I am getting my license soon, Can you recommend me a good accountant here in Toronto? I really appreciate your content it is very useful keep up the good work thank you so much!

Been looking for something comprehensive! Thank you so much for this :)
Would be amazing if you can shed some light on to how to potentially transition from Sole Prop to an incorporation.

The Capital Gain Exemption is no more, isn't it? I do believe Turdo change this year and eliminate that. I'm not affirming, but I do believe that's what happened.

Thank you for your video. I enjoyed watching it and it has very useful information. Note that the Lifetime capital gains exemption is not available to all Canadian sellers. To qualify, you must meet three specific tests: (a) the owner must have held the shares for at least 24 months before the sale, (b) at least 50% of the fair market value of the company's assets are used in an active business in the 24 months before the sale, and (c) at least 90% of the fair market value of the company's assets are used in an active business immediately before the sale.

Comment. Commenting. Commented!

When you incorporate instead of a Master business license do you have more fees as the name is moving from a license to incorporate and I know no one has my business name. Fact

I am interested in a research and development company, primarily dealing with educational journals, research related paid assistance. I don't know which type of company/corporate should I choose, like LLC, SMC, or PVT Limited 😢

This was SO informative and straightforward - Thanks Jessica!

The main benefit is being able to pay yourself dividends instead of salary. Takes your tax rate down to 14%. That fact alone is worth it for anyone profiting 75k or more

What if you incorporated to early can you go back to being a sole proprietor? I have the incorporation and trade mark but I haven’t expanded my cleaning company so my company isn’t making a lot of profit yet. Working on expanding currently. Also would you recommend hiring employees or contractors? If you could please make a video about that. Thank you!

What’s the cost of maintaining a corporation in canada …ie annual fees …audit fees etc etc …thanks in advance

Thank you for sharing, looking at incorporating this year.

This video was very informative Jess! I just subscribed!

I do have a question if you could provide some feedback?

I’ve been training for the past 2 years, and I’ve had family members, friends and even strangers ask if I’m a personal trainer or why I haven’t started training.

I’m getting ready to start my business, but since this is just the beginning for me, would you recommend a Sole Prop?

I know I won’t be making income right away, my goal is to build the brand via social media and charge accordingly.

What are your thoughts? Hope to hear back! 🙏🏾

Hello Jessica, This video was very insightful. I am a new entrepreneur and am trying to establish my trading business, which will involve import activities. Do you suggest having a sole proprietorship or incorporating the business? Looking forward to your advice. Thank you.