Posts

Incorporation Series: I’m incorporated. Now what?

Vancouver Bookkeeper(s), Tax Return Service Vancouver, Small Business Bookkeepers in Vancouver, Quickbooks, Incorporation, Incorporating Small Business Vancouver

Big yellow sign, you feel me, bro….

You did it. You put months of heavy contemplation into concrete action and incorporated your small business. *Confetti drop*

Now what?

We hope that this post will help guide you to successfully move forward with your new corporation.

First things first

You need to pick a date when you will start operating under the corporation. Usually the 1st of your chosen month is recommended. Once you have picked a starting date you need to allow around 2-4 weeks to get the following accomplished;

  • You need a completely new set of books/accounting records.

    • Your old books cannot be rolled over to your new company, no if’s but’s or maybe’s. The time of the year when you were a sole proprietor will be included in your personal tax return, while any business expenses that were incurred after you became incorporated will be included in your corporate tax return.

  • Figure out how you are going to organize all the new paperwork

    • Now that you are  incorporated the amount of paperwork that you will need to deal with is going to increase tenfold so you need to have a good filing system in place to manage everything.

What you need to change

There are three very important areas of your business that you will need to change.

  1. Since a corporation is a separate entity, you now need to apply for all new tax registration numbers including GST, PST & payroll numbers.

  2. You will need to apply for a new WorkSafe BC account. Make sure to include your current WCB number so that you get your rate information transferred over.

  3. You will need to open new bank accounts and apply for a new company credit card.

TIP: While doing this we recommend that you utilize this time to develop a relationship with your banker as it will come in handy later.

Other Important Reminders

  • Remember to put your new GST and PST numbers on your invoice template

  • Track your accounts receivable and accounts payable separately before and after your designated start date for using your corporation.

  • Inform your insurance company to update the policy with your corporate business name.

  • You may need to put some of your personal cash into the corporate bank account. Make sure that you track this.

If you are considering becoming incorporated and would like to discuss your options face-to-face with Teya our business consultant and tax expert you can make an appointment by calling us directly on  604-739-9536  or by requesting an appointment through our contact us page.

Incorporation Series: If you like it, put an Inc. on it

Vancouver Small Business, Vancouver Bookkeepers, Vancouver Small Business Bookkeeper(s)

Recently, a lot of people contacted us about whether or not they should incorporate their small business. So, we are turning to our trusty Homeroom blog to provide you with handy tips and advice with weekly posts on just that: the ABCs of incorporating your business.

While there are many advantages to adding “Inc.” to your business name, there are also a myriad of risks when you take the Inc. plunge at the wrong time, including costly mistakes that can hurt you financially if you don’t fulfill  all of your responsibilities with the Canada Revenue Agency (CRA).

In order to help you gain a better understanding of this topic we will discuss the following topics over the next few weeks:

Should I incorporate?

This post will discuss the costs involved, the criteria you should consider before taking the plunge and the common mistakes people make when deciding to incorporate.

I’m incorporated. Now what?

We will help you understand the process, what decisions you need to make and what reporting needs to take place.

How do I pay myself if I’m incorporated?

This topic is pretty self explanatory. Paying yourself is really important and once you incorporate you want to make sure you do it correctly.

We hope that our series on becoming incorporated will allow you to gain a better understanding of what being incorporated means for you as an individual business owner and for your business.

If you are considering becoming incorporated and would like to discuss your options face-to-face with Teya our business consultant and tax expert you can make an appointment in July by calling us directly on  604-739-9536  today or by requesting an appointment through our contact us page.