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Hi Mr. Madan,
I am going to set up an online business and a rental property business. I have a few questions in mind before I set up a meeting with you.
1. How much for setting up a new corporation company? What if more than one company, how much you will charge for that situation?
2. How to set up a business structure in this case?
Online business: Canadian owns an online business, sell products over the world. Products maybe from China or India or other countries direct to the customers over the world.
3. What if more than one online store, should I set up one business company per one online store?
4. Plus, I am going to invest in the rental property business as well. How to structure those businesses? How to reduce tax from personal or company-wide effectively?
Thank you so much for your helps!
Best Regards,
Thank you for reaching out to me. My responses to your questions are as follows:
1. My fee to incorporate a company is $918 plus tax. This includes the following:
- Articles of incorporation;
- Company by-laws;
- Officers / Directors / Shareholders ledgers;
- Share Transfer Register;
- Directors resolutions;
- Share Certificates;
- Corporate Minute Book;
- Corporate seal; and
- Government fees and name search fees.
2. The price above is for each company that you incorporate with us.
3. A Canadian / Provincial corporation can make sales to foreign countries. The Canadian / Provincial corporation will be taxable in Canada on its worldwide income.
4. The benefit of setting up a separate corporation for each online store, is that it makes the accounting and record keeping easier and more organized. It's also helpful if you want to sell one of the online stores in the future to a potential buyer.
5. A separate corporation should be formed for your rental business. Also, consider setting up a holding corporation to act as the shareholder of your rental corporation and online-store corporations. This will help with protection from creditors.
6. Maximize tax write-offs in order to reduces business taxes. Minimize the amount of personal income drawn from the group of companies to reduce personal taxes.