Tel: 416-645-8353
Fax: 416-645-8354

7001 Steeles Avenue West, Unit # 18 Toronto, ON M9W 0A2

Licensed Public Accountants

Business Registration

Starting your new business is a big decision. An even bigger decision is how you want to structure your company. There are many aspects to registering and incorporating a business and we can help you navigate through the intricacies. We can help you understand pros and cons of different types of business registrations so that you can make the right decision from the very beginning.

Incorporation services we offer are:

  • A complete financial review
  • NUANS and Name search
  • Incorporation and organization of corporations
  • Income projections
  • Type of Business
  • Availability of tax credits
  • Maintenance of financial records
  • Tax filings
  • GST/HST filings
  • Help you choose a fiscal year end or calendar year end and when to incorporate
  • Determine what will happen to your current business losses and future profits.
  • Determine what business assets and goodwill to transfer to the corporation.
  • Develop a mix of salary, dividends and bonuses to be paid to yourself and others.
  • Facilitate management decisions towards a successful business.

Some factors to consider for different types of businesses are:

Proprietorship

Pros:

  • Easy to start
  • Low start-up costs
  • Low regulations
  • Owner controls decision making
  • All profits go to the owners
  • Tax advantages
  • Minimal working capital
  • Business losses can be claimed

Cons:

  • Unlimited liability
  • Difficulty in raising capital
  • Higher taxation rates with higher income
  • Lack of continuity
  • Business reliance on self
  • May be difficult to sell

Partnership

Pros:

  • Easy to start up
  • Low start-up costs
  • Additional sources of capital
  • Tax advantages
  • Limited regulation
  • Broader management base and complimentary talents

Cons:

  • Unlimited liability
  • Difficulty in raising capital
  • Divided authority
  • Suitable partners may not be available
  • Conflicts between partners
  • Partners can legally bind each other
  • Lack of continuity
  • Profits are smaller per share

Corporation

Pros:

  • Limited liability
  • Possible tax advantages
  • Ownership is transferable
  • Continuous existence
  • Specialized management
  • Separate legal entity
  • Easier to raise capital
  • Capital gains exemptions

Cons:

  • More expensive to set up
  • Closely regulated
  • Extensive record keeping
  • Dividend taxation
  • Shareholder liability
  • Personal guarantees can undermine limited liabilities

Give us a call today so we can evaluate and analyze your short and long-term goals and help you set up your business the way that is best suited for you. We have the expertise to help you register, monitor and grow your business.

About Us

Vijay Sastry Kotamarti, CPA firm providing high level accounting, financial, taxation and business advisory services. Our superbly trained, professional staff takes great pride in offering personalized attention, ensuring clients receive the highest quality, timely advice in all areas of accounting

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