incorporate a sole proprietorship business?

[boosted]

Say I register a sole propiretorship business because I am looking to start a part time business. If it grows etc and I do it full time, I would want to incorporate it, what are the steps of doing so? Would it best to do that or to just register as a corporation from the start?

Also, for an advertising service, (putting advertising on a car) is that a taxable service?

[Just Confused]

As you're just starting out, you'll probably have low revenue and low expenses so it makes sense to operate as a sole proprietorship with a simple business registration initially.

Once you survive your first few years in business you can look into the process of making the switch. You can migrate up to an incorporated entity once you get some serious money happening. It won't be that difficult.

If you search on the RFD member "dealon". He/she has contributed to several similar threads in the last few months and mentioned several Ontario specific points.

I presume you mean you want to operate a mobile advertising service. If so, Yes, that is a regular bona fide business and applicable taxation laws would apply. Initially no GST need be collected, but you will pay personal tax rates on net business earnings (business revenue less business expenses)

On the other hand, if you mean plastering your own business name on the side of your car; Yes, that is a legitimate deductible business expense.

[perfectg]

I went inc a year after sole prop.

happily started year 6 this year

[wiremind]

Any approximate numbers for income before it would be wise to incorporate?

[sammamouth]

Firstly, what do you own (house, investments, etc.). If you don't have much, then I would start your business as a sole proprietorship and then incorporate when business picks up.

There are tax advantages as a sole proprietorship and you can write lots off against your income.

It also depends on the type of business. If you are in a high risk business and the changes of getting sued are high, then inc. but only if you own a lot.

Also, if you are already married, transfer your house (if you own it) into her name.