Thanks for the video. DO I need extra provincial registration for consulting service provided remotely. I am an IT consultant and providing services to Ontario region remotely and my office is physically located in Alberta. Thanks
@@choudharyfamilyincanada3659 In the situation that you describe, I do not think that an extra provincial registration is needed unless your provision of the consulting services in Ontario will become permanent. The test is a permanent presence in a province. The remote provision of the serices might be a bit confusing, but the more clients and work-time you have in a province the higher will the justification to register there extra-provincially I hope this clarifies
If a person is federally incorporated and operating in Ontario, then Schedule 524 and 546 of the Corporate T2 tax returns are not required when filing your T2
Amanda, I am not even close to have all this knowledge about Schedules of the T2, my accountant partners take care of this part, so I would not know the answer...
thank you very much for making this video!! it really helped me a lot I didn't really understand the whole extra provincial registration thing but I get it now thank you!
Hi there, if the address of business at the time of 'federal incorporation of company' is in Alberta and the main operation is in BC, then do we need to register the company in both the provinces?
In case there are absolutely no operations in AB, then only in BC, but then the question is why to register it in AB at all? If you have business operations in both provinces, then you need to register in both - the good news are that BC and AB are under collective agreement which makes the registration easy.
Thank you for taking the time to explain this issue, let's say a federal corporation registered in Ontario had to extra provincially register in QC because it operates from QC as well (it has another office and employees in QC) serving one QC client. In the second year of business, the company closed it's QC office and back fully to ON. However, still serving online the same QC client but from ON. In this case can the corporation dissolve it's QC extra registration? How is that done (normal dissolution process, filing article of dissolution, consent and final tax return? like any other QC corporation dissolve itself fully?) the company is no longer operating from QC but still exist in ON - so I am not sure if you call it dissolving in QC or de-registering only
Ahmad, it is very important to understand that you do not "dissolve" a corporation, just like you did not "incorporate" a new entity when registering in QC. what you need is to close your QC tax account as a non-operating corporation. The easiest way is to speak with a QC accountant, or to call Revenu Quebec (they are usually very friendly and provide answers there) and ask the procedure of closing your extra-provincial registraiton. BUT, it is definitely not a dissolution since it will close all your registrations. one more thing to keep in mind - once you start this process, your chances for an audit by CRA or revenue quebec will increase significantly, make sure you are prepared for it..
It's still not clear how to file the taxes if a corporation has, for instance, two extra-provincial registration, e.g. BC and ON. An e-commerce corporation being in BC mailing products to ON, AL, and locally in BC. My guess, the corporation has to pay taxes in BC for all sales mailed to BC+AL, and pay taxes in ON for all sales mailed to ON customers. Am I right?
Not completely. I would consider the corporation as having active place of business only in BC and file all the taxed in BC only. If all you do is mailing items to ON,it does not constitute an active business there (in my opinion). should you have an office or permanent ops in ON, then yes - you have to file one tax return, but report the income there as split between 2 provinces and apply the tax rates to separate portions of the profits.
Thanks for the Video, it was really helpful. I have a question, Do I need to open separate Bank account after Incorporation? Or we can link/use existing bank account?
Anil, you generally cannot "link" into one account. Also, I always suggest to open a separate account and start managing all your finances separately. This will help in the future from the accounting perspective and also from the legal protection by showing a complete separation of personal and corporate.
Thank you so much for this info! I have incorporated my business federally and operates from Alberta. Do you think it’s mandatory to register provincially too. I’m very new to this and your reply will be highly appreciated. Thank you so much
George, yes, you must register in the province where your corporation is operating. The process is called extra provincial registration. Without that you will not be able to file your annual tax returns. Here is the link for AB system: www.alberta.ca/register-out-of-province-corporation.aspx
Thank you for your video. I have registered my company provincially but now I am planning on doing business in other provinces. Is there anyway I can register my existing company to federal so I can protect my company name? Your help would be greatly appreciated.
There is technically a process of "continuing" a corporation from one jurisdiction to another. You can read more about it here: www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs02720.html. In my opinion, it is complicated enough to justify a new incorporation. Unless it is VERY important for you to retain the entity, I would suggest to incorporate a-new and retain the provincial for the "historical" benefits.
If I am offering services over video conference - I am in the province (A) not physically in the other province (B), do I still need to do this? (given that my client is physically in the province(B)?)
Andrea, it is a complicated question and depends on the type of consulting. If you are not located there, I would add a small disclaimer to your invoices and your documents that all services are deemed as provided in province A (where you are located), this way you will avoid unnecessary complications.
Would you recommend I still register my corporation in BC (where I reside for most of the year). Products are manufactured in South America, they are then kept in a warehouse in the USA and shipped to appropriate customers through our ecommerce website. I have incorporated Federally, but I still am unsure if I need to register the corp in BC.
Thank you for the information . I have registered federally , now want to register in Saskatchewan as well . Can I do it myself or will I need a lawyer for the same ? Will I need to handle the laws or bylaws , is there any I need to do in the context of laws ? from where can I register my corporation on Saskatchewan where I have already registered federally .
Appreciate the time you took to make this informative video - thanks. I have completed Federal incorporation for my software development business based in Alberta. Since this is an online business and my customer can be from anywhere in Canada or may be outside Canada, But I will deliver services here from Alberta. Am I correct to assume that I would need to register business for Alberta province along with the Federal incorporation and only Federal incorporation is not sufficient here?
Baljeet, that is correct. You must register in at least one province. In your case, it would be AB since your business is located there... Although your clients could be anywhere in Canada, it is the question of where the business is located and where the service is being rendered that determines that registration.
in my case, i have registered for a business through the government, but, since i live and want to sell in Quebec, I need an NEQ number to be official?? Please help. Thanks you.
Iconography, you indeed need NEQ # since your main place of business is in QC. You have to use the portal of Corporations Quebec (french), and register there your federal corporation, then you will receive the NEQ. It is the same process as extraprovincial registration elsewhere, but a bit complicated by QC rules and the use of french.
Hi there. First of all, greatly appreciate your knowledge. Thank you. Was hoping to get some guidance regarding inter provincial reg laws about the following. If I register my business as a sole proprietor in BC (manufacture and ship) and sell my products online to Canadian customers only, would I be required to incorporate and register with every province or can I sell my products online as a sole proprietor only. Leads me to my second question. If I operate my business in BC as a sole proprietor and sell my products wholesale to other businesses within BC, am I required or responsible for other provincial registration if they distribute outside of BC? Any guidance would be greatly appreciated. Thank you in advance
Thanks for the very informative video! I am from Ontario and have Federal corp, bought a property in BC for short term rental. Do I still have to register BC ?
Hamid, a home address will work. There is no limitation in Canada on an address to be a commercial property (I know there is in other countries, but not in Canada).
Cannabis, I will do one day. The problem with it is that any type of cannabis related ops is highly regulated and the main issue there is with licenses and certifications, as well as the mandatory compliance requirements. It will be a very tough topic to cover. Otherwise - most of them operate as a regular private corporation with 2-3 classes of shares and basic corporate governance. Thank you for the idea....
I have registered my federal incorporation. I am in New Brunswick amd office is registered here only. Do I need extra provincial registration mandatorily? I will be doing work from home IT job for another contracting company in Ontario and end client in Manitoba. Please let me know if it is needed. Also please make a video about how to assign shareholding percentage to directors, how to take money out from bank business account as salary/dividend and how to do quick method for GST/HST to save tax? Please help with all the info.
Yes, you need to register in the province where your main place of business is located - which is NB. Since it's an IT business with the services rendered online, I do not think you need to register anywhere else. Thank you for suggesting the topics - I will review and will prepare corresponding presentations.
I have an e-commerce business, I’m currently registered federally with a MB address. I create my product in Manitoba but it is warehoused in Ontario and shipped from Ontario. Should I be incorporated in both Manitoba and Ontario because of this?
Breanne, first of all, please make sure you separate "incorporated" and "registered", as per my video - these are two different processes. Second, I would interpret what you say as MB is the place of active business unless you have rented the warehouse and have your staff operating there. If all you have is a fulfilment provider that distributes your products from their warehouse, I would register extra provincially only in MB. Good luck.
Hello sir. I incorporated numbered business in 2020. I need to report tax to CRA. When is the due date for corporation tax report in Canada? And currently, my business is small, can I do tax report next year for two tax years at once, including 2020 and 2021 in 2022?
Jun, a corporation can choose what fiscal year to use, you do not have to follow the calendar year, BUT, you cannot choose the end of your fiscal year more than 360 days from the incorporation. Meaning if you've registered in 2020, you can choose the end of the month on which you've incorporated as your year end, then you have to file your annual tax report 3 months after the end of the fiscal year. And no, you cannot forgo reporting your income, even it was $0 or loss - you must file your annual tax return, otherwise you will be non-compliant with the CRA regulations.
@@jun9098 Yes. T2 is the name of the corporation income tax reporting to the CRA. This is what you do during three months after the end of your fiscal year.
Sehajpreet, it is a bit hard for me to understand "federally in Ontario with address in NS".... Essentially, your corporation must be registered in the province where it provides its services/products. So if you are located in NS and your business operates in NS, then yes, you should register in NS. But then the question is why is it initially registered in Ontario?
Thank you for this Video. As you said, registration of business in Ontario is done as a part of Federal registration. Does this mean business in ontario will have only one business number that will issue from Federal and will not have any business number from Ontario (Provincially) government
GUrvinder, it's a bit confusing, but if you incorporate federally, you will get the following: 1. federal corporation number; 2. CRA business number; 3. provincial corporation number (in the province of your registration). The BN is always the same, but there will be a federal and provincial corporation numbers.
I have registered corporation federally online with the alberta address. And i operate in alberta only . Do i need to register again in alberta province??
There is a dedicated video for this topic. Overall, it makes sense to incorporate since online businesses tend to grow fast and have potential for very extensive liabilities in the future... I would choose federal incorporation since it is better fit for the online type of a business... but at the end of the day almost no difference between provincial or federal..
I created a corporation Federally and used the option to register it in Ontario for free. However, my registered address is in Alberta, am I supposed to register in Alberta separately?
Great video and clear information. now I understand differences between incorporating federally and registering provincially. we only will do ecommerce outside CANADA, but we live in BC, it applies the same for us for taxes?
Thank you for your valuable information. My company is incorporation. and is Incorporation eligible for any grant or fund since we work with Newcomers, Women and Youth job seekers. If so, do you have any suggestions?
Jean, overall - Yes. The process of hiring a foreign worker is a statutory process, where a SP (or any other type of employer) must apply for the work permit. Your business being a SP or corporation does not matter much for the process itself. As a side note, in case you have followed my videos, you would know that I always suggest to incorporate once you start hiring people to work for you due to higher levels of liabilities that you might be a subject to.
One thing is not clear. Why if I want to incorporate provincially in Ontario I'm going to pay $360 and if I incorporate federally for $220 I can register my company in Ontario as well for free?
Beale, that is correct. Unclear for me too, but this is so and I am doing my best to benefit (for my clients) from the situation... Those who structured these two systems forgot to communicate with each other and review the implications of their decisions.
Thanks for your informative video. After registering federal corporation then extra provincial in BC, do you need to register for local city if it's online business in a home set up?
This depends on the municipal rules. In some areas, the city authorities demand all busiensses, including home based to be registered. But in most places this is not required. You can visit municipal website and look for licensing and registration section or call their building department to get the answer.
Thank you for creating such a helpful video! As you mentioned that a provincial registration number is required exclusively for tax purposes, is that mean that all extra-provincial registered entities and the corporation have to file tax returns separately with CRA? If my extra-provincial registered entities have no active operation, can I file their tax return together with the non-profit corporation tax return?
Yes and no. The tax return is filed once, but in case of multi-provincial operations, it will be split provincially and the income tax rate will be applied per-province.
Great contents! Love it! One question: if a company only has passive business (earning passive income through real estate investing in more than one province) , does it need to register extra provincially?
Well, essentially, you have to register in those provinces where you derive your income from. So, in case you have a number of properties in several provinces, you will have to register extra provincially in each.
Sir I registered with fedral and received fedral BIN and then received provincial OCN/BIN as well as company key now I have two BIN fedral as well as provincial. I am confused that if I going to open an account in bank or going to start work as self employed which BIN I have to use fedral or provincial. Pls suggest. TIA
it's a bit confusing, but if you incorporate federally, you will get the following: 1. federal corporation number; 2. CRA business number; 3. provincial corporation number (in the province of your registration). The BN is always the same, but there will be a federal and provincial corporation numbers.
Thank you for your well-organized contents Sir. I'm not a Canadian resident yet but I have work permit in Canada, can i incorporate my business federally and Ontario extra provincially?
Rebecca, currently you cannot incorporate federally without appointing a local PR/citizen to act as a director of your corporation. On the other hand, you can incorporate provincially in Ontario, which does not require a local director anymore. Please also be cautious about your WP and its limitations and make sure that your operations of the corporation do not contradict to your WP conditions.
Business Number in Canada
ua-cam.com/video/oStD-kGRPPw/v-deo.html&ab_channel=BusinessinCanada-DoitRight%21
Thanks for the video. DO I need extra provincial registration for consulting service provided remotely. I am an IT consultant and providing services to Ontario region remotely and my office is physically located in Alberta. Thanks
@@choudharyfamilyincanada3659 In the situation that you describe, I do not think that an extra provincial registration is needed unless your provision of the consulting services in Ontario will become permanent. The test is a permanent presence in a province. The remote provision of the serices might be a bit confusing, but the more clients and work-time you have in a province the higher will the justification to register there extra-provincially
I hope this clarifies
@@businessincanada-doitright1822 That helps. Thank you!
Would love to see a video on legalities of outsourcing work to residents of other countries (specifically for e-commerce) and what that entails.
If a person is federally incorporated and operating in Ontario, then Schedule 524 and 546 of the Corporate T2 tax returns are not required when filing your T2
Amanda, I am not even close to have all this knowledge about Schedules of the T2, my accountant partners take care of this part, so I would not know the answer...
thank you very much for making this video!! it really helped me a lot I didn't really understand the whole extra provincial registration thing but I get it now thank you!
Thankyou very much - You are a very nice Human Being and this video absolutely helped me. Many Thanks
A wwonderful video and worth watching and SUBBING channel ! thanks for sharing , a fellow creator ...
great content as usual, love this channel!
Hi there, if the address of business at the time of 'federal incorporation of company' is in Alberta and the main operation is in BC, then do we need to register the company in both the provinces?
In case there are absolutely no operations in AB, then only in BC, but then the question is why to register it in AB at all? If you have business operations in both provinces, then you need to register in both - the good news are that BC and AB are under collective agreement which makes the registration easy.
Thank you for taking the time to explain this issue, let's say a federal corporation registered in Ontario had to extra provincially register in QC because it operates from QC as well (it has another office and employees in QC) serving one QC client. In the second year of business, the company closed it's QC office and back fully to ON. However, still serving online the same QC client but from ON. In this case can the corporation dissolve it's QC extra registration? How is that done (normal dissolution process, filing article of dissolution, consent and final tax return? like any other QC corporation dissolve itself fully?) the company is no longer operating from QC but still exist in ON - so I am not sure if you call it dissolving in QC or de-registering only
Ahmad, it is very important to understand that you do not "dissolve" a corporation, just like you did not "incorporate" a new entity when registering in QC. what you need is to close your QC tax account as a non-operating corporation. The easiest way is to speak with a QC accountant, or to call Revenu Quebec (they are usually very friendly and provide answers there) and ask the procedure of closing your extra-provincial registraiton. BUT, it is definitely not a dissolution since it will close all your registrations.
one more thing to keep in mind - once you start this process, your chances for an audit by CRA or revenue quebec will increase significantly, make sure you are prepared for it..
It's still not clear how to file the taxes if a corporation has, for instance, two extra-provincial registration, e.g. BC and ON. An e-commerce corporation being in BC mailing products to ON, AL, and locally in BC.
My guess, the corporation has to pay taxes in BC for all sales mailed to BC+AL, and pay taxes in ON for all sales mailed to ON customers. Am I right?
Not completely. I would consider the corporation as having active place of business only in BC and file all the taxed in BC only. If all you do is mailing items to ON,it does not constitute an active business there (in my opinion).
should you have an office or permanent ops in ON, then yes - you have to file one tax return, but report the income there as split between 2 provinces and apply the tax rates to separate portions of the profits.
You're an amazing teacher!
Thanks for the Video, it was really helpful. I have a question, Do I need to open separate Bank account after Incorporation? Or we can link/use existing bank account?
Anil, you generally cannot "link" into one account. Also, I always suggest to open a separate account and start managing all your finances separately. This will help in the future from the accounting perspective and also from the legal protection by showing a complete separation of personal and corporate.
Thank you so much for this info! I have incorporated my business federally and operates from Alberta. Do you think it’s mandatory to register provincially too. I’m very new to this and your reply will be highly appreciated. Thank you so much
George, yes, you must register in the province where your corporation is operating. The process is called extra provincial registration. Without that you will not be able to file your annual tax returns.
Here is the link for AB system: www.alberta.ca/register-out-of-province-corporation.aspx
@@businessincanada-doitright1822 thank you so much for your reply and guidance! It means a lot to me❤️
Thank you for your video. I have registered my company provincially but now I am planning on doing business in other provinces. Is there anyway I can register my existing company to federal so I can protect my company name? Your help would be greatly appreciated.
Thanks n do we convert a provincial existing company to a federal corporation?
There is technically a process of "continuing" a corporation from one jurisdiction to another. You can read more about it here: www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs02720.html.
In my opinion, it is complicated enough to justify a new incorporation. Unless it is VERY important for you to retain the entity, I would suggest to incorporate a-new and retain the provincial for the "historical" benefits.
If I am offering services over video conference - I am in the province (A) not physically in the other province (B), do I still need to do this? (given that my client is physically in the province(B)?)
Andrea, it is a complicated question and depends on the type of consulting. If you are not located there, I would add a small disclaimer to your invoices and your documents that all services are deemed as provided in province A (where you are located), this way you will avoid unnecessary complications.
What if my business is in quebec and regularly sells products to customers in other provinces?
Would you recommend I still register my corporation in BC (where I reside for most of the year). Products are manufactured in South America, they are then kept in a warehouse in the USA and shipped to appropriate customers through our ecommerce website. I have incorporated Federally, but I still am unsure if I need to register the corp in BC.
Thank you for the information .
I have registered federally , now want to register in Saskatchewan as well .
Can I do it myself or will I need a lawyer for the same ?
Will I need to handle the laws or bylaws , is there any I need to do in the context of laws ?
from where can I register my corporation on Saskatchewan where I have already registered federally .
Appreciate the time you took to make this informative video - thanks. I have completed Federal incorporation for my software development business based in Alberta. Since this is an online business and my customer can be from anywhere in Canada or may be outside Canada, But I will deliver services here from Alberta. Am I correct to assume that I would need to register business for Alberta province along with the Federal incorporation and only Federal incorporation is not sufficient here?
Baljeet, that is correct. You must register in at least one province. In your case, it would be AB since your business is located there... Although your clients could be anywhere in Canada, it is the question of where the business is located and where the service is being rendered that determines that registration.
Can you make a video about master business license and how to use it with incorporation to operate a business with different name ...
Will do. Thank you for the suggestion
in my case, i have registered for a business through the government, but, since i live and want to sell in Quebec, I need an NEQ number to be official?? Please help. Thanks you.
Iconography, you indeed need NEQ # since your main place of business is in QC. You have to use the portal of Corporations Quebec (french), and register there your federal corporation, then you will receive the NEQ. It is the same process as extraprovincial registration elsewhere, but a bit complicated by QC rules and the use of french.
Hi there. First of all, greatly appreciate your knowledge. Thank you. Was hoping to get some guidance regarding inter provincial reg laws about the following. If I register my business as a sole proprietor in BC (manufacture and ship) and sell my products online to Canadian customers only, would I be required to incorporate and register with every province or can I sell my products online as a sole proprietor only. Leads me to my second question. If I operate my business in BC as a sole proprietor and sell my products wholesale to other businesses within BC, am I required or responsible for other provincial registration if they distribute outside of BC? Any guidance would be greatly appreciated. Thank you in advance
Thanks for the very informative video! I am from Ontario and have Federal corp, bought a property in BC for short term rental. Do I still have to register BC ?
this was a great video. Could the address that we have to provide be a home address? or we have to lease an office?
Hamid, a home address will work. There is no limitation in Canada on an address to be a commercial property (I know there is in other countries, but not in Canada).
Do a video on canada cannabis corporation and how to start thanks
Cannabis, I will do one day. The problem with it is that any type of cannabis related ops is highly regulated and the main issue there is with licenses and certifications, as well as the mandatory compliance requirements. It will be a very tough topic to cover.
Otherwise - most of them operate as a regular private corporation with 2-3 classes of shares and basic corporate governance.
Thank you for the idea....
@@businessincanada-doitright1822 thx
I have registered my federal incorporation. I am in New Brunswick amd office is registered here only. Do I need extra provincial registration mandatorily? I will be doing work from home IT job for another contracting company in Ontario and end client in Manitoba. Please let me know if it is needed. Also please make a video about how to assign shareholding percentage to directors, how to take money out from bank business account as salary/dividend and how to do quick method for GST/HST to save tax? Please help with all the info.
Yes, you need to register in the province where your main place of business is located - which is NB. Since it's an IT business with the services rendered online, I do not think you need to register anywhere else.
Thank you for suggesting the topics - I will review and will prepare corresponding presentations.
I have an e-commerce business, I’m currently registered federally with a MB address. I create my product in Manitoba but it is warehoused in Ontario and shipped from Ontario. Should I be incorporated in both Manitoba and Ontario because of this?
Breanne, first of all, please make sure you separate "incorporated" and "registered", as per my video - these are two different processes.
Second, I would interpret what you say as MB is the place of active business unless you have rented the warehouse and have your staff operating there. If all you have is a fulfilment provider that distributes your products from their warehouse, I would register extra provincially only in MB. Good luck.
Hello sir. I incorporated numbered business in 2020. I need to report tax to CRA. When is the due date for corporation tax report in Canada? And currently, my business is small, can I do tax report next year for two tax years at once, including 2020 and 2021 in 2022?
Jun, a corporation can choose what fiscal year to use, you do not have to follow the calendar year, BUT, you cannot choose the end of your fiscal year more than 360 days from the incorporation. Meaning if you've registered in 2020, you can choose the end of the month on which you've incorporated as your year end, then you have to file your annual tax report 3 months after the end of the fiscal year.
And no, you cannot forgo reporting your income, even it was $0 or loss - you must file your annual tax return, otherwise you will be non-compliant with the CRA regulations.
@@businessincanada-doitright1822 Thank you sir. Maybe I need to report T2.
@@jun9098 Yes. T2 is the name of the corporation income tax reporting to the CRA. This is what you do during three months after the end of your fiscal year.
I am federally incorporated in Ontario but my address is from nova scotia do i need to register it in Nova Scotia as well?
Sehajpreet, it is a bit hard for me to understand "federally in Ontario with address in NS".... Essentially, your corporation must be registered in the province where it provides its services/products. So if you are located in NS and your business operates in NS, then yes, you should register in NS. But then the question is why is it initially registered in Ontario?
I am opening a staffing agency in alberta. If I end up sending staff to other provinces, should I get a federal incorporation?
Thank you for this Video. As you said, registration of business in Ontario is done as a part of Federal registration. Does this mean business in ontario will have only one business number that will issue from Federal and will not have any business number from Ontario (Provincially) government
GUrvinder, it's a bit confusing, but if you incorporate federally, you will get the following: 1. federal corporation number; 2. CRA business number; 3. provincial corporation number (in the province of your registration).
The BN is always the same, but there will be a federal and provincial corporation numbers.
I have registered corporation federally online with the alberta address. And i operate in alberta only . Do i need to register again in alberta province??
Good video
What about opening corporation for online business?
There is a dedicated video for this topic. Overall, it makes sense to incorporate since online businesses tend to grow fast and have potential for very extensive liabilities in the future...
I would choose federal incorporation since it is better fit for the online type of a business... but at the end of the day almost no difference between provincial or federal..
I created a corporation Federally and used the option to register it in Ontario for free.
However, my registered address is in Alberta, am I supposed to register in Alberta separately?
Great video and clear information. now I understand differences between incorporating federally and registering provincially. we only will do ecommerce outside CANADA, but we live in BC, it applies the same for us for taxes?
Thank you for your valuable information. My company is incorporation. and is Incorporation eligible for any grant or fund since we work with Newcomers, Women and Youth job seekers. If so, do you have any suggestions?
Can sole proprietor hire foreign skilled worker?
Jean, overall - Yes. The process of hiring a foreign worker is a statutory process, where a SP (or any other type of employer) must apply for the work permit. Your business being a SP or corporation does not matter much for the process itself.
As a side note, in case you have followed my videos, you would know that I always suggest to incorporate once you start hiring people to work for you due to higher levels of liabilities that you might be a subject to.
One thing is not clear. Why if I want to incorporate provincially in Ontario I'm going to pay $360 and if I incorporate federally for $220 I can register my company in Ontario as well for free?
Beale, that is correct. Unclear for me too, but this is so and I am doing my best to benefit (for my clients) from the situation... Those who structured these two systems forgot to communicate with each other and review the implications of their decisions.
Thanks for your informative video. After registering federal corporation then extra provincial in BC, do you need to register for local city if it's online business in a home set up?
This depends on the municipal rules. In some areas, the city authorities demand all busiensses, including home based to be registered. But in most places this is not required.
You can visit municipal website and look for licensing and registration section or call their building department to get the answer.
Thank you for creating such a helpful video! As you mentioned that a provincial registration number is required exclusively for tax purposes, is that mean that all extra-provincial registered entities and the corporation have to file tax returns separately with CRA? If my extra-provincial registered entities have no active operation, can I file their tax return together with the non-profit corporation tax return?
Yes and no. The tax return is filed once, but in case of multi-provincial operations, it will be split provincially and the income tax rate will be applied per-province.
Great contents! Love it! One question: if a company only has passive business (earning passive income through real estate investing in more than one province) , does it need to register extra provincially?
Well, essentially, you have to register in those provinces where you derive your income from. So, in case you have a number of properties in several provinces, you will have to register extra provincially in each.
Sir I registered with fedral and received fedral BIN and then received provincial OCN/BIN as well as company key now I have two BIN fedral as well as provincial. I am confused that if I going to open an account in bank or going to start work as self employed which BIN I have to use fedral or provincial. Pls suggest. TIA
it's a bit confusing, but if you incorporate federally, you will get the following: 1. federal corporation number; 2. CRA business number; 3. provincial corporation number (in the province of your registration).
The BN is always the same, but there will be a federal and provincial corporation numbers.
Great explanation
If you are not making money while sleeping, then you will work till end of your life for others. Warrent Buffett ............
Thank you for your well-organized contents Sir. I'm not a Canadian resident yet but I have work permit in Canada, can i incorporate my business federally and Ontario extra provincially?
Rebecca, currently you cannot incorporate federally without appointing a local PR/citizen to act as a director of your corporation. On the other hand, you can incorporate provincially in Ontario, which does not require a local director anymore.
Please also be cautious about your WP and its limitations and make sure that your operations of the corporation do not contradict to your WP conditions.