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So... I incorporated!

A few words about incoporation in Canada...

 

First of all, you can incorporate in Canada using the Internet and it can be done in matters of minutes, without using the services of a third-party. Yes, just between you and the government, you can do it in a few minutes, provided you know how. It took me weeks to understand how it could work (because there was a step A that required a step B to be done, but step B required step A to be done first), but now I could do it again in just a few minutes.

Second of all, you can incorporate federally or provincially! What?! It means your company can be created in Canada, or just in a province of Canada. I incorporated in British Columbia. Incorporating federally (i.e., in Canada) was too complicated and quite useless in my case, I belive.

Once you've incorporated, you likely need a business licence to operate in a given city.

And you likely need a bank account, which can be expensive. BMO provides a free business bank account, that is very suitable if you make very few transactions every month.

If ever you wanna be paid in some currency that is not Canadian dollars without losing too much on banking fees, TransferWise can give you a bank account in Euros and perhaps some other currencies as well.

Why did I incorporated?

I wanted to be able to bill clients for my services.

There are basically two options: either you have unlimited liability, or you have limited liability. In the first case, many things are simpler, if not all but one! The drawback is that if something (and I don't know what) goes wrong, then you can be sued and your liability is unlimited so potentially someone or some company can go after you and try to get everything you own!

Or you have limited liability that is determined by the amount of money that the company has.

If you incorporate, it means you're in the second case, where the worst that can happen is that the company dies! (I'm excluding the cases where you do illegal stuff, because in such case it doesn't really matter if you incorporate or not, because in case you get in trouble, limited liability won't protect you much.)

Again, I'm not a lawyer of any sort, so if you seek legal advice, get a lawyer! I'm only giving my thoughts regarding my own experience and my understanding of things.

Do I like being president of my company?

Sometimes I find it cool or funny or whatever, but it's actually not something I find enjoyable. It requires to understand so much, and I find that there's a lot of time (and other resources) wasted in the process of simply managing the company... (Accounting, tax returns, employment insurance, work insurance, etc.)

Grow! Infinitely!

It's funny how in so many cases, it's assumed that if you create a company, it has to be with the intention of becoming the Emperor of the World! Like if in a few years you haven't grown, then you should just die or you will just die, or it's just not worth the trouble of incorporating!

Incorporated employee...

I still have to ask the CRA (Canada Revenue Agency) if there's a chance they'll consider me an incorporated employee in case I'd have only a very few clients... Being a personal services business is not something one would wish, because it means paying more taxes, and (don't ask me why but) a company's main duty is to make and maximize profit! Of course I do not want to avoid taxes. I just don't want bad surprises. I should contact CRA asap! I'll keep you posted (unless I forget, which is possible).


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