Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
As a Canadian business owner, there are plenty of ways that you can expand your operation beyond the private sector. In fact, as your enterprise grows and starts earning more income, you might want to consider taking the next step; incorporation.
However, before that can happen, you’ll need to file the right paperwork that, when approved, allows you to switch over from your sole proprietorship. Not sure how this is done? Keep reading to find out.
Click here to see how you can expand your business with new capital.
A sole proprietorship is when you own and operate a private business, which can be accomplished by filling out the appropriate permits. Since no other business organizations are involved, you will then have to deal with any legal and financial situations that arise.
Despite having less protection against legal or debt-related incidents, it’s usually cheaper and easier to claim sole proprietorship over a business than it is to incorporate it since you won’t have to dedicate as much time and money toward legal or accounting costs. Not to mention, you can run your business in whatever way you see fit.
Click here to see how to get a secured loan to help grow your business.
In addition, you will only have to file the following documents in order to register a private business:
If your business is continually growing in size and profitability, then it may be time to register it as a company on a federal or provincial level, otherwise known as incorporation. Most financial experts recommend this process for businesses that earn $50,000 or more yearly.
While some business owners are hesitant about the extra costs and documents associated with the registration process, incorporating can be highly advantageous because it turns your private enterprise into a separate legal and financial entity. This provides you and any other shareholders added with protection from lawsuits, debt collection penalties, and other liabilities that the corporation accrues. Not to mention, it allows your company name and legacy to live on, even after you (or any of its original directors) have sold your shares or deceased.
Want to increase your business cash flow? click here.
If you’ve decided to incorporate, the next choice you’ll have to make is whether to do it provincially or federally. Both options have benefits and drawbacks that can drastically change the financial health of your business, so be sure to get some professional advice before you register.
If you register on a federal level, your company name will be protected across every province and territory in Canada, which is a huge asset, particularly when it comes to any legal or financial problems that occur.
Other advantages to federal incorporation include but aren’t limited to:
However, there are some disadvantages to federal incorporation, such as:
Just as it sounds, provincial incorporation is when you register your company within a specific province or territory, and you must gain separate permissions if you wish to develop outside your designated sector (jurisdiction).
Although many business owners choose the federal route, provincial incorporation also has plenty of advantages, such as:
Unfortunately, provincial incorporation is not without its disadvantages, such as:
Still not sure, click here to learn more about if you should incorporate federally or provincially.
When you incorporate, it may be wise to hire a professional accountant to oversee the financial side of the registration process, as well as a lawyer to counsel you on any legal requirements. In that case, save at least $1,000 – $2,000 for these costs alone.
You may also have to provide these documents during and in the years that follow the registration process (requirements vary based on province/territory):
Although you can do all this online through the Government of Canada website, there are also many physical outlets and business web portals in every jurisdiction where you can register for provincial or federal incorporation.
Remember, incorporating your business, whether provincially or federally, isn’t always simple and requires a lot of time, money, and patience. That said, it’s definitely one of the most effective ways to grow your enterprise and rake in more profit as a result.
Learn how your business credit can affect your growth.
That’s why it’s essential to get the right professional advice before you start filling out your registration forms. Be sure that you understand every aspect of incorporating and are aware of the necessary updates you must make, such as:
Incorporating your business can be expensive. Check out if you can cover your costs with a business loan.
Depending on where you apply and what type of corporation you’re creating, the whole registration process can last about one week, give or take a few days to set up or update any necessary documents and accounts. Soon after, your bank should relay this information to Canada’s credit bureaus (Equifax, TransUnion, Dun & Bradstreet), who will modify each version of your business credit report accordingly.
The final step is to cancel your Sole Proprietorship, along with any old financial or tax-related accounts (which will need to be set up again under the new company name). Once all this is done, congratulations, your corporation is on its way to greatness!
Rating of 4/5 based on 13 votes.
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Don’t pay until March with this offer from our partner, Fairstone.* Ends January 31st.
New Offer! Get up to $2,000 cashback + a $50 bonus on signing up. Conditions apply.
Earn an average 5%¹ cash back at thousands of partners and at least 0.5%² cashback guaranteed.
With KOHO’s prepaid card you can build a better credit score for just $10/month.
All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.
When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.
Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.