This is actually a common question, and it’s really important that you do it right. How do you do this, depends on various factors with your pre-existing business, as well as your new holding company.
You can surely transfer an existing business to a newly incorporated holding company on a tax-free basis by implementing a Section 85 Rollover.
There are few reasons that compel people to convert their pre-existing business to a new holding company. One of the primary reasons is that the business has grown. This alone can be a significant reason to switch the business to a new holding company.
There are a number of things to consider when looking at switching your pre-existing business to a new holding company. Below are the commonly asked questions from our clients when they reach out considering what is involved in making the transition to an incorporated company.
Can I use the same business name?
Yes, you can use the same business name as you are currently using, you just need to add a legal ending to the business name from these six options:
- Inc.
- Incorporated
- Ltd
- Limited
- Corp.
- Corporation
It is good to know in advance from an accountant about this kind of stuff so in the future you don't have to face problems or difficulties.
What other information is required to Incorporate?
- Business address
- Your legal name and address
- Share structure
- Minimum and maximum number of directors
- Your telephone and email address
Can a new person be added to the incorporation?
Yes, you can. If you wish to add someone as a director to the incorporation who was initially not part of your pre-existing business, now is the perfect time to add them. A crucial time for your company, so to get the knowledge from an accounting firm that what you are going to face.
In which categories of incorporation, we offer our services?
- Ontario incorporation
- Federal (Canada) incorporation
- Alberta incorporation
- British Columbia incorporation
- Manitoba incorporation
- Saskatchewan incorporation
What changes are required after completing the incorporation?
- Bank account – your business category might change with most banks.
- Cheques – new cheques will be required with business name
- Tax accounts – HST, payroll, etc will need to be set up or change
- Business cards
- Letterhead
- Logo
We are here to assist you to make the process of converting a pre-existing business to a new holding company a seamless and, easy process where we move with you step by step through the incorporation process. We need more information about your business and its existing setup to guide you in more detail. If you need any further information and you are still uncertain about incorporating your small business, our experienced and professional team at Filing taxes is here to set you on the right path considering your personal business situation. Feel free to reach out to Filing Taxes at 416-479-8532. Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer:
The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting firms and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.