Going to start my own company

[mr x]

For work purposes, i am going to start my own company. Don't know much about the process yet, but going to do it next week. Any advice?

[GuingesRock]

Yes pay for a lawyer who specialises in that, then sit down with a pint of beer and put your feet up. A few years ago I started a new company with a top lawyer in HFX on the water front and it cost around $1,200 IIRC. I don't have that company but I have another at the moment. I wouldn't try doing it by yourself.

[Jimmy]

How in depth are you going with this? If it's simply registering a business, it's pretty easy. You just do the name search and submit your application. Used to be able to do it at the Maritime Center on Barrington/Spring Garden (Bell Aliant building), but not sure if that's still the case.

[Broob]

There are definitely benefits to incorporating a business and I agree with Mark that doing it with a lawyer is essential. Other things you want to think about are the structure of the company ie who are the shareholders. Don't know if you have a family but you can set up a family trust to own the company and its a great way to move money around, like you can pay out money to members of the trust (kids) to use for tuition with minimal tax penalties. Anyway this info is easy enough to find but a lawyer and an accountant are worthwhile expenses to set up a company properly from the beginning.

[RubberToe]

I'm setting up a company too. Already registered as a sole proprietorship and planning on incorporating in the coming weeks. Technically you don't need a lawyer to incorporate, just submit the apropriate forms and it will cost around $500.

Interesting about the family trust thing, I'll look into that as well. I haven't dug too deep in incorporating yet though.

[mr x]

I'm doing this for work reasons, I'll find out shortly how far indepth I need to go. What ever it is will be carrying $5mil insurance.

[Celiacbrew]

there is a website that will help you with the registering of your business. It will provide basic info on permits etc
http://www.novascotia.ca/snsmr/access/b ... siness.asp" onclick="window.open(this.href);return false;

But depending on what you are doin with your company you might want to consult someone about how to set it up and what form it should take. Several people suggested lawyers and they are needed for the title search etc, but an accountant might be better equipped to advise you on the form of your business. Since you said you are doing it for work, it sounds like you are doing contract work and aren't running this as a real company. If that is the case the accountant would be more important to talk to than te lawyer since all the forms etc have become pretty much standardized now and you aren't worried about registering trademarks etc. if you look for an accountant, find one with experience with your field of work. Any large firm will have someone they will be able to recommend.

If you are registering it in another province then that province will have the same service as access Nova Scotia on their provincial website. ACOA and some of the provincial departments also have people to help with setting up a business. There are also regional development agencies in every county of NS and they will be able to help you navigate all the people you need to talk to and all the things you need to comply with.

[mr x]

Thx!

I'm probably going to work offshore pending my medical, and one option was to work as your own company (more $), so that's what I'm looking at. Be talking with my boss later today, and I'll hopefully get more details then.

[toddthebeerdude]

It isn't too bad when I had to do it a few years back, a decent lawyer will help you through the process. It ain't bad

[GAM]

I'm doing this for work reasons, I'll find out shortly how far indepth I need to go. What ever it is will be carrying $5mil insurance.

Shelly will be pleased!

Snady

[Keggermeister]

Thx!

I'm probably going to work offshore pending my medical, and one option was to work as your own company (more $), so that's what I'm looking at. Be talking with my boss later today, and I'll hopefully get more details then.

Incorporating cost me ~$1400 said and done. If you are consulting, take the time to fully explore the hr side of things, and loss of benefits and liabilities like buying your own PPE, computers and such. Also realize that you will not likely have any employee rights and benefits (medical, pension, vacation etc...) sent your way unless you negotiate them into your contract. More cash sure sounds nice, but make sure you don't end up spending more in the long run. As a consultant, you sure can write off a lot of taxes if you are having to buy expensive gear to do your job.
Also look at the CRA guidelines for Consultant VS Employee and make sure you fit in the right category in their eyes, otherwise it could have adverse tax implications. If you want to run it by Michelle, she will know the answer.

Best of luck!

[mr x]

Won't be consulting or need to buy PPE, only boots - more of a private contractor situation (although maybe that's the same as consultant in this case?). Can get medical through Shelley. Pension through an employer isn't of interest anymore, but is available. Taking what I had from NP and moving on. Nature of this job is short term at the moment, but could go long term, hard to judge.

[mr x]

Any opinions on this:

http://www.corporationcentre.ca/docen/home.asp#" onclick="window.open(this.href);return false;

[spears104]

I didn't engage a lawyer for my wife's sole proprietorship but I can tell you that getting an accountant took a lot of load off my shoulders. Great advice and there was a lot of stuff I didn't know.

[mr x]

I'm pretty comfortable doing it online now.

Rubber Fist Automation and Brewing Ltd.

[bluenose]

it's all about taxes...

Incorporating allows your "company" to be paid and taxed as business income which is a lower tax rate if you stay under the small business threshold. You can also pay yourself personally in salary (most tax) or dividends (less tax). Salary allows for CPP benefits and RRSP contribution room, but no EI as you are the owner of the business, so there's a trade-off.

Setting up a sole proprietorship (partnership of one), is stupid easy, but from a taxation point-of-view, it's no different than being an employee of your company, so there's no chance of utilizing the preferred taxation rates I mentioned above.

I understand a little more about this than the average bear, and if it were me, I'd hire a lawyer to setup a numbered company for me (no search fees). I would probably pay myself entirely in dividends, as you can earn up to approximately $60,000 per year in eligible dividends and pay almost no tax.

[bluenose]

I should add, that from the employer's point of view, designating you as a contractor relieves them from treating you as an employee, which makes it easier and cheaper for them. You are no longer protected by any Labour Standards legislation, and they aren't required to grant you any benefits or vacation, etc.

Your relationship with them will be determined by your contract, which is another reason to engage a competent lawyer, so they can review your contract and point out potential problems in it.

[mr x]

Yeah, thinking numbered company and then I can use another name afterwards, or even change it when I get time.

[mr x]

Seems to be going pretty smooth so far.

FYI, Access Nova Scotia does Commissioner of Oaths services for free.

[mr x]

Well, that was easy and cheap. I am now a company.

[GillettBreweryCnslt]

Well, that was easy and cheap. I am now a company.

Congrats!

[benwedge]

Well, that was easy and cheap. I am now a company.

Companies are people too, so you're still a person.

[mr x]