How to Convert a Sole Proprietorship into a Corporation

[@vinayn3857]

What happens to the debt built over the years of operating as a sole proprietor? Should it be transferred as well?

[@sip786]

Hi @SRJ Chartered Accountants , great video. Question for you, I just started out in the trucking industry. I am a company driver right now. Maybe down the road maybe this year I will lease my own truck but for the time being I am just a company driver. I just got a business number account as a sole proprietor and got myself a GST #. When I go and lease truck down the road would it be best to transfer the business in the Ltd company (Corporate) at that time , as you said in the video?

[@Bmywudt2]

How is it going, I have a question in regards to Sole Proprietor and Corp. I have my license as a contractor working as a sole proprietor. I also recently created a corp whereas I work for the corp as a sole proprietor. So rather than converting from sole proprietor to corp where I need to pay an extra $350 for a new license, I am working under the corp name. Meaning I use the company to charge an amount and then take out my profit or pay myself. Now the question that I have is that what is the process of hiring others under the companies name where they get paid as well.

[@Srjca]

Hi Benjamin. Thanks for your question. When paying yourself from the corporation you should be withdrawing a salary (and paying source deductions monthly) or dividends if you are a shareholder. You can hire other staff as employees or as consultants depending on what their function is and your arrangement with them. I would avoid taking out funds from your own corporation and declaring that income personally as a sub-contractor as the CRA frowns upon this.

[@Bmywudt2]

SRJ Chartered Accountants thank you so much for this. Greatly appreciated.

[@ahmaddaboul2681]

@@Srjca Hi Benjamin, thanks for the interesting video. May I ask what is wrong of paying my self management fees or you called it sub-contractor fees instead of salary or dividend. would the CRA frowns upon this if it was done on fair pricing basis (I am full time employee at my own corp and will invoice my corporation management fees around $50K a year).

[@jourdinsellers4671]

@@Srjca I have a Sole proprietor And I want to transfer to a C-Corp. I feel Like my process Is easier but wasn't really explained. COuld you explain it to me like a 3yr old at [e-mail]

[@Srjca]

@@jourdinsellers4671 Hi Jourdin. This video is for Canadian corporations. If you are in the US then this would not apply.