Ruby Tax handles incorporation and small business setup in Ontario, including federal or provincial incorporation, HST and payroll registration, and advice on whether incorporating is the right move before you commit to it.
The decisions made in a business’s first year have a bigger effect on what you keep than anything a tax return can do afterwards. Whether to incorporate, how to pay yourself, when to register for HST. All of it is much cheaper to get right at the start than to unwind later. Worth an hour before you commit.
What we help with
- Incorporate or stay a sole proprietor, worked through with your actual numbers
- Federal or Ontario incorporation
- CRA business number, HST and payroll account setup
- Salary versus dividend planning
- Bookkeeping system setup in QuickBooks or Xero
- Grant and funding application support
Should you incorporate?
Not always. Incorporation brings real tax advantages once profits pass a certain point, but below that it mostly brings filing costs and paperwork you did not have before. The answer depends on what you earn, what you draw out, and whether liability is a concern in your line of work. We will tell you honestly if it is not worth it yet.
What it costs
Quoted per file, depending on what you need set up. An initial conversation about your situation costs nothing.
Book a call
Tell us what you are starting or changing and we will talk it through. Call 647-990-7258 or email raj@rubytax.ca.
Common questions about incorporating
Should I incorporate or stay a sole proprietor?
It depends on profit, risk and what you take out of the business. Incorporating can defer tax when you leave profit in the company, and it separates business liability from personal. It also adds a corporate return, separate books and filing obligations every year. Below a certain profit level those costs outweigh the benefit, and we will tell you if that is where you are.
What is the difference between federal and Ontario incorporation?
A federal corporation has name protection across Canada and can operate in any province, but it has to register extra-provincially where it does business. An Ontario corporation is simpler and cheaper if you only operate in Ontario. For most small businesses working in one province, provincial incorporation is enough.
Do I need to register for HST as soon as I incorporate?
Not necessarily. Registration becomes mandatory once taxable revenue passes $30,000 over four consecutive calendar quarters. Below that you can register voluntarily, which is often worth doing if you have significant HST to claim back on start-up purchases.
What registrations does a new Ontario business need?
Typically a business number with CRA, plus an HST account once you cross the threshold or choose to register early, and a payroll account if you will pay yourself or anyone else a salary. Which of these you need depends on how you plan to draw money out of the business.
Related services
Also see corporate tax returns (T2), HST return filing, and monthly bookkeeping.