Great info. Just a side note from someone who works in corporate law and worked in bankruptcy for over 12 years- when someone sues the corporation, they also add the director of the corporation to the suit. I always thought there was protection with an incorporation but not as much as people think. I guess maybe larger corporations but as a person with a corporation, you are most likely the director. Love the lighting by the way.
@jessicamoorhouse
6 ай бұрын
And another reason why you should have liability insurance even if you're incorporated. Thanks for the comment.
@lianalane6744
6 ай бұрын
I subscribed half way through this video. Exactly what I was looking for
@jessicamoorhouse
6 ай бұрын
Happy I could help!
@MohammadHadiQambari-rf7or
7 күн бұрын
Thank you a lot, you changed my decision , Jessica
@jessicamoorhouse
7 күн бұрын
Happy I could help!
@debbieweber5507
8 ай бұрын
makes sense , I will try out reselling to see how it goes. if it grows I will Incorporate later, thank you
@thernresume
2 жыл бұрын
I was having a mini freak out this morning about HST! Watched your video. Thanks for helping me calm down! I only wish I'd stumbled upon your channel sooner.
@jessicamoorhouse
2 жыл бұрын
I can relate haha! Glad you found my video helpful :)
@NOW-TECJ
14 күн бұрын
thank you so much was able to register my company after watching this video. God bless you
@jessicamoorhouse
13 күн бұрын
Amazing!
@kostyaprotosovitsky175
7 ай бұрын
thank you for all the information. it helped much much more than any other resources I was relying on. Very clear, easy to understand and joyful to watch you. thank you again
@jessicamoorhouse
7 ай бұрын
Thank you!
@l.c.9596
3 ай бұрын
Completely outstanding presentation. Thank you so much
@jessicamoorhouse
3 ай бұрын
Thank you!
@Thatoneweirdmax
Жыл бұрын
The content looks great! super professional and personable. You rock Jess.
@jessicamoorhouse
Жыл бұрын
Thanks so much!!!
@stagesofcj
6 ай бұрын
This was SUPER helpful. Also I love the lights, and your personality is really easy to learn from! Thanks!
@jessicamoorhouse
6 ай бұрын
Thank you!
@SimonVicencioCanada
Күн бұрын
very useful content! your video appears as an extra content on my finance course at University of Niagara Falls
@jessicamoorhouse
2 сағат бұрын
Interesting, that's news to me haha!
@butbyeveryword
4 ай бұрын
Thank you! Finally someone who makes sense. I did studied Biz accounting but did not finish. I know we have Sole prop, partnership & corp. I kept seeing LLC & S corp and i was so confuse 😅😂.thank you!!
@jessicamoorhouse
4 ай бұрын
Yup, those are American. We don't have LLCs or S corps in Canada. :)
@pratyushareddi
3 ай бұрын
@@jessicamoorhouse Once I register a business in Canada ( Ontario), can I move my business to USA. I’m planning to move to USA next year. So I’m quite confused. Help!!!!
@jessicamoorhouse
3 ай бұрын
@@pratyushareddi That's not something I'm super familiar with but I found this article that may help www.biz2credit.com/blog/guide-to-relocating-your-small-business-to-the-us/
@stephaniebass8042
3 ай бұрын
This is so helpful! And I remember that business! Rich and fit challenge!
@jessicamoorhouse
2 ай бұрын
Haha it was a fun idea at the time and great experience all the same, even though it ultimately wasn't profitable. No regrets!
@MauriceBoulard
Жыл бұрын
Thank you girl for all your videos, it's straight to the point and gonna save me time and money (I think won't need to ask services from an CPA then)
@jessicamoorhouse
Жыл бұрын
So glad you've found my videos helpful (though I will say, I've personally working with a CPA so worth it).
@jclarkelister
7 ай бұрын
This was incredibly helpful and to the point in a way that was easy to understand. Thank you so much!
@jessicamoorhouse
7 ай бұрын
Yay, I'm so glad!
@sadie2914
4 ай бұрын
Thank you this was super helpful! I was struggling with deciding between starting out in corporations vs. solo, and corporations seemed overly complex to Me, so this was very well explained and heloed me differentiate between the terms! 5hank you so so much!
@jessicamoorhouse
4 ай бұрын
You're welcome! It's easier to start with a sole prop and then become a corp later on, than incorporate too early and wish you hadn't right away.
@sadie2914
4 ай бұрын
@jessicamoorhouse I 100% agree especially with your breakdown! It helped me a lot. Truely, thank you again! 🙏🖤🖤🥰
@anitabruinsma-clarityperso2724
2 жыл бұрын
Very thorough video, Jessica. A very important point you made is that people don't always properly consider how much they will be able to keep in the corporation. They underestimate how much of their income they will need (especially if they subsequently have children or buy a house). The cost of the corporation doesn't make sense because they aren't getting the tax benefits.
@jessicamoorhouse
2 жыл бұрын
Thanks Anita! And absolutely! That's why it didn't make sense for me to incorporate for years as I was either paying myself a salary or contributing to my RRSP and whatever was leftover was for business expenses. But over time then it made sense as there was more money I could actually keep inside the business.
@2darktwoC
Жыл бұрын
This helped me out so much! Thank you for this information! 🙏🏻
@jessicamoorhouse
Жыл бұрын
You're so welcome!
@Sandra.Brayer
Ай бұрын
Thanks for this information ❤
@jessicamoorhouse
28 күн бұрын
You're welcome!
@PermaVexed
Жыл бұрын
I have no idea how I stumbled upon your channel, but I could not be happier. I’ve been binging your videos for a couple days now and LOVING the content and information. I’ve already shared the channel with a few people that I think it would benefit.
@jessicamoorhouse
Жыл бұрын
Oh yay! That makes me so happy!
@RajDholakia007
Ай бұрын
This is the first video I watched and have already shared your channel with my girlfriend. We wanted to get better with personal finance and your channel looks like a great starting point! Thanks Jessica!
@Maximustemp
9 ай бұрын
Thank you so much! Very helpful!
@jessicamoorhouse
9 ай бұрын
Thanks!
@dom.productions
Жыл бұрын
I appreciated this video so much. Was really thinking about incorporating this year. May reconsider.
@jessicamoorhouse
Жыл бұрын
Awesome, glad you found this video helpful with your decision!
@Schroefdoppie
9 ай бұрын
On a side note, you can get commercial liability insurance as a sole proprietor.
@lethaldose2000
Жыл бұрын
Your set looks beautiful. Love it and I can see all the work you put in.
@jessicamoorhouse
Жыл бұрын
Thanks so much! It's definitely come along way over the years!
@chibuzrmusic
Жыл бұрын
I absolutely love your setup !!! I'd love to see how you set this all up, cuz the quality of the video and background is amazing!!
@jessicamoorhouse
Жыл бұрын
Oh wow thanks! Honestly just a bunch of lights I got on Amazon. Maybe I'll do a quick video at some point in the future.
@chibuzrmusic
Жыл бұрын
@@jessicamoorhouse I look forward to it, I just subscribed and can’t wait to dive into the rest of your content. 🔥
@mikeyboyer22
2 ай бұрын
Very informative!!
@jessicamoorhouse
2 ай бұрын
Thank you!
@nandonocanada9276
10 ай бұрын
First time here, great content! Your studio is so beautiful, congrats! Im gonna open my sole prop. Thanks!
@jessicamoorhouse
10 ай бұрын
Thanks so much!
@VancouveriteBoy
5 ай бұрын
Jessica you're amazing! Thanks for sharing 🌹
@jessicamoorhouse
5 ай бұрын
Thanks for watching!
@MinnieOnCam
2 жыл бұрын
Plus a lot of the business information out there is from the USA they think LLC is the only way to be a business owner and that is not true for being in Canada.
@jessicamoorhouse
2 жыл бұрын
Ya business structures in Canada are very different than the U.S. We don't have LLCs or S-Corps. We have sole props, partnerships, and corps.
@DilavarSingh-iy1yi
Жыл бұрын
Thank you so much for putting out right information and giving me perspective. God bless you 🙏
@jessicamoorhouse
Жыл бұрын
You're welcome!
@Airhaert
Жыл бұрын
Wow! Thank you! This is insight!
@jessicamoorhouse
Жыл бұрын
Thanks for watching!
@max_rove
10 ай бұрын
Great info and straight to the point. Thanks.
@jessicamoorhouse
10 ай бұрын
Thank you!
@chantellee6362
Жыл бұрын
Fabulous, thank you for all of this. Liked, subscribed and excited to share these videos!!
@jessicamoorhouse
Жыл бұрын
Awesome! Thank so much!
@POLYLIVING
3 ай бұрын
You’re so wonderful✨ I’m so glad I found your channel #gratitude
@ButterChickenCat
3 ай бұрын
Thank you that was helpful
@jessicamoorhouse
3 ай бұрын
Glad you found it helpful!
@905jay
Жыл бұрын
I LOVE your videos, content, advice and your delivery. Keep up the excellent videos, you're providing very valuable content for Canadians (Ontarians) who have no idea where to go and how to start
@jessicamoorhouse
Жыл бұрын
Thanks so much!!!
@905jay
Жыл бұрын
@@jessicamoorhouse the fact that you responded is amazing :) Thanks again
@sinabahiraie6761
29 күн бұрын
Thank you so much
@jessicamoorhouse
26 күн бұрын
Happy to help!
@streetrunner8273
2 жыл бұрын
Thanks. Some business grants are only for incorporated business
@jessicamoorhouse
2 жыл бұрын
You're welcome!
@MrMrsMann-id6yj
Жыл бұрын
Thankyou, great info
@seanh9632
Жыл бұрын
Thank you! - subscribed 👍
@jessicamoorhouse
Жыл бұрын
🙌Appreciate it!
@Chud84
4 ай бұрын
Would be helpful to talk about what the expenses are for a corporation which don’t effect sole proprietorship.
@jessicamoorhouse
4 ай бұрын
I think I answered this in some other comment, but the biggest things are filing two tax returns (corporate plus personal) as well as your corporate annual return with the federal government or provincial government. And if you've incorporated, that's likely because your business has grown and become more complex, so likely you'd be paying a bookkeeper to keep your books, have staff you have on payroll, do more complex tax planning with your accountant, etc...
@fanglu1623
Жыл бұрын
Great video and well explained the knowledge
@jessicamoorhouse
Жыл бұрын
Thank you!
@devonlougheed
2 жыл бұрын
Perfect lighting!
@jessicamoorhouse
2 жыл бұрын
Thanks Devon haha :)
@CodingHub000
4 ай бұрын
Good content. Keep it up❤
@jessicamoorhouse
4 ай бұрын
Thanks!
@Reallifejourney388
11 ай бұрын
Very nice set up!
@jessicamoorhouse
11 ай бұрын
Thanks!
@ivan33776
2 жыл бұрын
YES!! Thank you Jessica !!
@jessicamoorhouse
2 жыл бұрын
You're so welcome! Let me know if you have any questions after watching :)
@ivan33776
2 жыл бұрын
@@jessicamoorhouse after maxing out RRSP and incorporating you start receiving salary which is much smaller than before. This means your RRSP contribution limit won't grow as much as before. So you will contribute less to RRSP, but you will get money on the corporate account. How can you utilize that money later when/if you need them?
@ivan33776
2 жыл бұрын
Let's say after running my corporation for 3 years and paying myself a salary I want to buy a house. And because my salary is big enough to just cover my day-to-day expenses I don't have anything in my savings account. But I have money in my corporation.
@jessicamoorhouse
2 жыл бұрын
@@ivan33776 So once you incorporate, that's when you can work with your accountant to determine the best way to pay yourself an income as an employee of the corporation while staying in a lower personal marginal tax rate. That could mean doing a combination or salary and dividends for example, however dividends don't help you in terms of building new RRSP contribution room. If you want more RRSP room, naturally you need to have higher taxable income which means you'll be pushed into a higher tax bracket. Again, that's why you work with an accountant to run a bunch of different scenarios and discuss your goals to see what strategy makes the most sense for you. With the money inside the corporation, you can use that money for business expenses but you can also invest it inside a corporate account to make it grow inside the corporation as well.
@jessicamoorhouse
2 жыл бұрын
@@ivan33776 If you want to take that money out of the corporation, you're still going to have to pay some tax on it once it leaves the corporation, but how much depends on if you pull it out as a dividend or employment income or a combination.
@alikhalil2863
10 ай бұрын
Hi, very good quality videos, thanks a lot! I just hope you touch on investing possibilities each business type have (stocks, shareholders…). Thank you!
@jessicamoorhouse
10 ай бұрын
I haven't made a video specifically on investing for businesses yet but that's a great idea for the future. If you're a sole prop, then obviously any investments you, have whether you earmark them for your business or not, will be taxed at your personal tax rate if outside of a registered account since there is no tax distinction between business money and personal money as a sole prop. If you're incorporated, it's much more complex but you can keep money inside your corp instead of paying it out to yourself and you can invest it inside your corp. With that said, passive income you earn from your investments (dividends, capital gains, interest, rental income) is taxed at around 50% across Canada, whereas you have more favourable tax treatment on any active business income you earn. You can find more details with these resources: enrichedthinking.scotiawealthmanagement.com/2022/11/04/passive-income-taxation-for-canadian-controlled-private-corporations/ www.myownadvisor.ca/taxation-of-investment-income-in-a-corporation/
@alikhalil2863
10 ай бұрын
@@jessicamoorhouse you're the best! Thank you
@LesleeLanglands
26 күн бұрын
Thanks so much for this. I was wondering if you know anything about dissolving a corporation. I started one, but have not used it and think its best if I dissolve it. I was at a stalemate was not sure what to do, but your video helped confirm it.
@jessicamoorhouse
26 күн бұрын
Glad I could help! Definitely not worth paying to keep a corporation you're not using.
@tonytv4608
Жыл бұрын
I love your videos
@jessicamoorhouse
Жыл бұрын
Thanks so much!
@candidofinda4773
2 жыл бұрын
very good your video jessica
@tayoolaneye45
Жыл бұрын
Hi Jessica, this is an amazing video. thank you for this! how did your company from Sole Prop to Incorporated?
@jessicamoorhouse
Жыл бұрын
I discussed it with my accountant every year to see based on my numbers if it made sense, and eventually in 2021 it finally made sense from a tax viewpoint. She connected me with a lawyer to help to all the paperwork and then I had the fun task of closing down all my sole prop sales tax accounts, opening up new ones, getting a corp business bank account and credit card, set up Quickbooks for my corp and also find a bookkeeper to help me manage all my books.
@3otabe3
20 күн бұрын
I like your KZitem studio 👍🏻
@jessicamoorhouse
20 күн бұрын
Thank you!
@DorianBlue1
2 ай бұрын
Jessica, I trully apreciate the information. Quick question, if you switch from a sole prop. to a corporation, will I lose all my business credit and credit history for cards and tradelines from the sole prop.?
@fesidd
Жыл бұрын
hi, can you please make a video on how to obtain a vendors permit
@jessicamoorhouse
Жыл бұрын
Thanks for the suggestion!
@TripsToInfinity
5 ай бұрын
Great vid.
@jessicamoorhouse
5 ай бұрын
Thanks!
@ellenmacpherson4690
Жыл бұрын
So awesome! My question (Sask) is whether registering a sole proprietorship with the province changes a tax situation of if a registered business still just file a T1?
@jessicamoorhouse
Жыл бұрын
Doesn't change anything. Whether you're a sole prop using your personal name or you register it to use a different business name (ex. XYZ Consulting Services), you get taxed the same. It's only if you're incorporated that there's a difference in how you're taxed.
@itsmesomeguy
Жыл бұрын
im a motorcycle mechanic...i dont expect to make 100k anytime soon but id appreciate the extra protection...thanks for the food for thought
@jessicamoorhouse
Жыл бұрын
You're welcome!
@urvyyaduvanshi13
7 ай бұрын
My husband (he is a filmmaker) says your lighting in the video is “too good” 😊😅
@jessicamoorhouse
7 ай бұрын
Thank you! And lighting was the thing I was the WORST at in film school haha. Luckily watching a million KZitem videos on better lighting has helped!
@raunaqt90
Жыл бұрын
Thank you so much for this video!! Quick question: What is the impact of shutting down your incorporation due to the failure of the business?
@jessicamoorhouse
Жыл бұрын
Great question and this article goes through it in-depth www.avalonaccounting.ca/blog/how-to-shut-down-your-corporation-in-canada#:~:text=You'll%20need%20to%20file,your%20RC%20account%20with%20CRA%3E
@SR-gt350
2 жыл бұрын
Incorporation is 👍. As a contractor definitely worth while. Capabilities for write-off and shareholders draws are worthwhile. It's a bit more from tax standpoint but still worth it.
@jessicamoorhouse
2 жыл бұрын
Absolutely, now that I'm incorporated I really like it and it does make more sense for how my business is right now. But yup, a bit more paper work that's for sure.
@BusinessFinancialNetwork
2 жыл бұрын
😎
@jessicamoorhouse
2 жыл бұрын
👍
@deekas2578
10 ай бұрын
Hello Jessica , Great informational video! I'm in the beginning stages of started a dog treat business and I was wondering which route you suggest
@jessicamoorhouse
10 ай бұрын
If you're a the beginning stages, it typically makes sense to start as a sole prop to see it get off the ground, then as it becomes more successful you may want to consider incorporating.
@sarataj7242
24 күн бұрын
Thank you Jessica for all the info! I was about to download the budget spreadsheets that you mentions are free on your website but they are $32 each, could you please confirm?
@jessicamoorhouse
23 күн бұрын
Correct, I offered them for free for a number of years, but then did a big overhaul of them, added automations, more features, and made them much more comprehensive, so I now charge a small one-time fee to download them. The good thing is, once you purchase them, if I ever do any future updates to them, you get the new version for free.
@itzBoltGG
7 ай бұрын
You mentioned that the general rule of thumb is that if your business is earning 100,000+ it may make sense to incorporate. At this time I am making more than that from my regular job and side hustle combined. Would you incorporate only based on the business or a combination as tax brackets can get quite high.
@jessicamoorhouse
6 ай бұрын
Great question, so the rule of thumb is really in reference to your tax bracket. If you're in a high tax bracket because you are earning 6-figures and up, and also you've maxed out your RRSP and FHSA contributions for tax deductions, then it may make sense to incorporate so the money you leave inside your corporation can be taxed at your corporate tax rate. If you're a sole prop, any business income you earn will be taxed at your personal marginal tax rate which would likely be significantly higher. So if you don't need to pay yourself out of your corporation much and can leave that money inside the corporation, it will be taxed at a lower rate. It's only when you take that money out and pay yourself personally that it will be taxed at your personal marginal tax rate. Hope that helps! But as always, before incorporating I always suggest discussing this with your accountant.
@sayedhadimousavi5510
Жыл бұрын
Thanks
@jessicamoorhouse
Жыл бұрын
👍
@jawwad126
Жыл бұрын
Hi Jessica, A detailed video indeed. Just a quick question though. I saw another video of yours (titled "sole proprietor in Canada Q&A" -posted roughly a year ago) where you mentioned that if one was to use their legal as sole proprietor, then the registration is not required however in this video you have mentioned about renewal of business registration for sole proprietorship every 5 years (at a cost). Now this has confused me slightly, is the renewal for those who have used a business name and registered their business under it? Or is it also for individuals who are doing business under their legal name without registration? I look forward to your response. Regards JD
@jessicamoorhouse
Жыл бұрын
The renewal is for sole props who have registered their business and go by a different name than their personal legal name.
@jawwad126
Жыл бұрын
@@jessicamoorhouse thank you very much.
@jessicamoorhouse
Жыл бұрын
@@jawwad126 😁
@gcre8ive642
Жыл бұрын
That's quite insightful info. I have a question I will appreciate if you can answer same. I have registered my photography business as a sole, and I also own rental property. My accountant said I need to incorporate my business so that I can keep rental income in separate business number. so according to him photography income into a LTD company, and rental income in regular sole business number that I already have. I don't want to go with ltd. company since not making much money on profits. I am not sure why I can not keep rental income and photo business income in sole. what are your views?
@jessicamoorhouse
Жыл бұрын
One thing to keep in mind that your accountant should have brought up is rental income inside a corp is considered passive income so will not be eligible for the small business deduction. Rental income is considered a passive income unless your company has 5 full-time employees. The tax rate on passive income is around 50%. And you absolutely can keep your photography business and rental income inside the same sole prop and just be taxed at your marginal tax rate. May be a signal to look for another accountant.
@fransiskusraymond3242
Жыл бұрын
thanks for the clarification, Jessica. I have a question. I was thinking of starting a business of selling an item and I was planning on naming it differently that my own name. would I register my business under my personal name or the item brand name? TIA
@jessicamoorhouse
Жыл бұрын
You would register your business under whatever you wish to name your business. You don't have to register your business if you plan on just using your legal personal name. So if that's your brand name, such as "ABC Candles", then you would register your business under that.
@abbygodfrey3282
3 ай бұрын
Is this as having a business registration number?
@andrejones3930
Жыл бұрын
What if you already make 80k from you 9-5 and have a business on the side that brings in 50k. Would it make sense to incorporate in order to save taxes?
@jessicamoorhouse
Жыл бұрын
Depends on a few factors. For example, can you first lower your tax rate by another means (i.e. RRSP tax deductions)? Also, do you plan on keeping that side hustle money inside your corp, or will you pay it out to yourself leaving nothing in the corp? If so, they you're taxed the same as if you weren't incorporated because it would all eventually be taxed at your personal marginal tax rate.
@arshS27
Жыл бұрын
@@jessicamoorhousesame qsn say having 70 K as income 9-5 and then say 15 k via contract from US . I think makes sense to incorporate since u save around 6-7 k in income tax . Also one qsn even if u pay urself as dividend , u will be still better than paying urself via regular personal account or u Can get loan from busuiness too ? And also what as per u best business bank account if I need say 10-15 k from us as payments in usd ?
@jessicamoorhouse
Жыл бұрын
@@arshS27 Definitely talk to an accountant
@krystinehamre7851
5 ай бұрын
Hey Jessica, I’m an apprentice carpenter and I am doing small projects as a side hustle and I am wondering if I can be a sole proprietor? I won’t do any jobs that are high risk or require permits and/or structural and I will get insurance for myself? Need to do research on that. Seems like a gray area because construction can be super high risk. But I will have a lot of business expenses in the first year or two because of tool costs. What do you think about carpentry as a side hustle?
@jessicamoorhouse
5 ай бұрын
If you do any business in which you earn revenue from work you do outside of an employer, then you are automatically a sole proprietor and need to track your expenses and revenue and report/pay taxes on any income earned.
@jaymc9899
Жыл бұрын
for a high-risk engineering company would you recommend 'incorporation'?
@jessicamoorhouse
Жыл бұрын
Any business in which you want to protect your personal assets from potential lawsuits should seriously consider incorporating in my opinion, if that's what you mean by high risk.
@MinnieOnCam
2 жыл бұрын
This is a wonderful video, seeing this I don't need to become a corporation for a while. probably after college when I add in my second career in accounting & finance.
@jessicamoorhouse
2 жыл бұрын
Thanks for watching Minnie!
@tarrafindlay4616
3 ай бұрын
HI, Thanks for all your videos. I just wish I would have found them sooner! I have incorporated my business but really think I shouldn't have. How do you suggest I determine if it is worth it to dissolve my corporation and resume my business as a sole-proprietor? Thanks in advance for any suggestions:)
@jessicamoorhouse
3 ай бұрын
Gosh, that's a big decision to make. I think talking to an accountant would be an important step. Is it that you don't feel like you're earning enough to make it worth it?
@tarrafindlay4616
3 ай бұрын
Thanks for your reply! No, I am more concerned about how much taxes I am paying. I am a contractor, work from home with few expenses. I incorporated from the start thinking I had too. I’m paid HST too. Now I often wonder what the difference may be if I wasn’t incorporated.
@leroybrown3226
Жыл бұрын
Question. Wouldnt incorporating after , or near $100k of business revenue also apply to 9-5 income? If my job pays me $90k and I want to start a side business, wouldnt it be better to incorporate since my overall income is already nearing that 6 figure mark? As well as, the sole proprietary income and work income is looked at as 1 income for taxes?
@jessicamoorhouse
Жыл бұрын
It could definitely help but that's why I'd urge you to talk to an accountant first because then you can also discuss first maxing out your RRSP, the cost of incorporating and also filing corproate taxes each year (which can be expensive), and whether you will actually be keeping a good portion of your side hustle income inside your corporation to benefit from the lower corporate tax rates.
@leroybrown3226
Жыл бұрын
@@jessicamoorhouse Thank you very much for your response :)
@Harriz2005
Жыл бұрын
Thank you for the clear and thorough explanation. I was hoping to ask you about tax deductions. If I earn an income being an employee to another business and my sole proprietorship business earned little to Zero income over the taxation year, could I still use my business expenses as tax deductions to lower my overall income? I started my sole proprietorship July 2023. Thank you in advance.
@jessicamoorhouse
Жыл бұрын
Yes though you need to prove that you are striving to earn business revenue in the eyes of the CRA. This article explains more groupenroll.ca/can-i-claim-business-expenses-without-income-in-canada/
@Harriz2005
Жыл бұрын
@@jessicamoorhouse Thanks again. I do have another question. Could the price of a smart phone device between $1500 and $2000 purchase be included as write off. The phone will be used for running the business and for personal use. Also, how do I decide the amount of write off for bills, mortgage interest, property tax, etc... you mentioned in a video that we can't claim the whole amount but a percentage, what percentage or what amount? Thank you in advance.
@jessicamoorhouse
Жыл бұрын
@@Harriz2005 An accountant can help you with all of this, but this article answer the question about the cell phone www.reachcpa.ca/post/is-my-cell-phone-a-business-expense
@terrymcgillicuddy8056
2 жыл бұрын
Hi Jessica, I have resent resigned from my full-time position. I am starting my own business as self-employed. With just a few month left before the new year, do I have to apply for gst/hst number as long as I only make 5 to 10 thousands in the next few months? My previous job working for an employer I have earned 50,000 gross up to date when I resigned. Will the 50,000 gross affect me being self-employed?
@jessicamoorhouse
Жыл бұрын
Employment income does not count as business revenue. It's only self-employed income that would cound. You can find more info about GST/HST eligibility and requirements here jessicamoorhouse.com/sales-tax-in-canada-hst-gst-pst-self-employed/
@anavanesaroman
3 ай бұрын
What about if you have a full time job with a good salary? Does it make sense to add more money to your yearly income?
@jessicamoorhouse
3 ай бұрын
Always! First, because if it’s something you’re passionate about it gives you space to explore it (with little risk since you still have a full-time job to fall back on). Second, because if though the extra income may bump you into a higher tax bracket, you’ll still take home more income. I always see people being afraid of earning too much income for fear of taxes, which doesn’t make sense. You’ll still come out ahead even at a higher marginal tax rate. Plus, you could potentially write off some expenses that are both personal and business like your phone, utilities, rent, mortgage, etc.
@anavanesaroman
3 ай бұрын
@@jessicamoorhouse Thank you for all your help!
@shannonortiz7125
4 ай бұрын
What are the costs associated with incorporating? I know it's about $1500 ish when setting up, but are there additional annual charges I don't know about. I'm literally in the process of incorporating, and wish I watched this video first :) Thank you!
@jessicamoorhouse
4 ай бұрын
Yes, there are additional costs once you're incorporated. First, you need to file a corporate tax return in addition to your personal tax return, so make sure to budget for that (if you're using an accountant or software). Second, you need to file a corporate annual return with either youe province (if you're a provincial corp) or with the federal government (if you're a federal corp). This is something you'd do with your lawyer which can be a few hundred bucks. Then, at a certain point you may want to hire a bookkeeper and that's an additional cost as well.
@shannonortiz7125
4 ай бұрын
@@jessicamoorhousethanks! I just incorporated Federally, but because I’m in Ontario, I have to register federally as well. An additional $600. Yikes! I guess I better make sure my business is successful now 😄
@paschalochang3891
7 ай бұрын
Nice video Jessica. I just recently got a job which states on the letter of employment that I am an independent contractor. The job pays 6600CAD per month. I also just started a 9 to 5 which pays 90k per annum. I am really confused on what to do. Some people have advised me to do a sole proprietorship while some have said I should incorporate. Which will I go for based on my circumstances.
@jessicamoorhouse
7 ай бұрын
Since you'd be earning a pretty high income with both jobs combined, there may be some benefits to incorporating. I'd highly recommend working with a CPA who can take a look at your situation though and offer specific advice on what you should do.
@jalyssakhan5161
7 ай бұрын
Grocery business is sole proprietorship or Corporation?
@jessicamoorhouse
7 ай бұрын
If you haven't incorporated your business, then you're a sole prop.
@maxm1584
Жыл бұрын
Thanks for the video! I run an e-commerce selling online but based in BC. Can I incorporate federally? Or do I still need to incorporate at the provincial level too?
@jessicamoorhouse
Жыл бұрын
If you incorporate federally, that means you can operate your biz in all provinces so no need to incorporate provincially. There's some more info here that may be helpful www.futurpreneur.ca/en/2022/choosing-between-federal-vs-provincial-incorporation/#:~:text=Federal%20incorporation%20allows%20you%20to,can%20increase%20costs%20of%20incorporation.
@koolaidpuc
3 ай бұрын
Hey! I have a question. Can you name and register a company with numbers but without the Canada at the end of the name? For example: can you a name company 11111122 INC. instead of 11111122 CANADA INC. ? Would that be possible?
@jessicamoorhouse
3 ай бұрын
No, if you choose to have a numbered name for your business, then it must consist of numbers followed by the word Canada and a legal element (for example, 15273498 Canada Ltd.) www.bdc.ca/en/articles-tools/start-buy-business/start-business/how-to-name-company
@cliasta9614
8 ай бұрын
Great information so if I am doing a platform similar to airbnb do you think I should just trade mark it first before registering it since it will be a start up corporation? The stuff you said had me thinking.
@jessicamoorhouse
8 ай бұрын
Definitely talk to an IP lawyer about what makes the most sense for your business venture, then I'd also suggest talking to a business lawyer about incorporating. But likely you'd want to incorporate before trademarking anything so the company can own the trademark and not you personally.
@cliasta9614
8 ай бұрын
@jessicamoorhouse awesome thank you for these info , it means a lot to me.
@sachinkumar-rv2lp
2 жыл бұрын
Hi .. I am in Canada as a student on a study visa. I have a very successful Fiverr business (with two employees to manage the Fiverr account in India). I started this business when I was back in India. Can I transfer this business to Canada, holding a student visa, whilst I retain the employees back in India to operate the account?
@jessicamoorhouse
2 жыл бұрын
You can find more info about study and working in Caanda here www.canada.ca/en/immigration-refugees-citizenship/services/study-canada/work.html
@HouseKarl
Жыл бұрын
what about people who wanna incorporate before they start? for something simple like dropshipping or ecommerce?
@jessicamoorhouse
Жыл бұрын
I'd first suggest talking to an accountant but in general my thoughts don't really change. Being a corporation is more complex and expensive to set up and maintain compared to a sole prop, so it's best to make sure it's the best business structure for you before diving in.
@jumpyvincejumpyvince4500
10 ай бұрын
When implementing your tax strategies, RRSP was that as a sole proprietor or a corporation? also what other tax strategies are there?
@jessicamoorhouse
10 ай бұрын
My strategy of maxing out my RRSP was when I was a sole prop. Once I maxed it out and then needed another path for further tax efficiencies, that's when it made sense for me to finally incorporate. But before that, I was getting all the tax deductions I needed to lower my tax bracket just by contributing to my RRSP as a sole prop.
@cretnotonic
Жыл бұрын
Can anyone clear this up for me? How do you advertise and get your services known under a Sole Proprietorship? If you're using your legal name as your business name, how will people know you and what you do ? How do you advertise using your legal name?
@jessicamoorhouse
Жыл бұрын
When advertising, honestly the least important part is your business name. Lead with your offering, services, testimonials, branding, logo, tagline, etc...
@royalg4107
Жыл бұрын
Hey this video was fantastic! Quick Q. I’m planning on keeping my 9-5 and will start a consulting business on the side permanently. Understanding I can max my rrsps contribution to offset some tax implications (in the instance both jobs put me over 100k), would you recommend I incorporate if yearly income from both is steady over 100k? Also, is it possible instead of paying myself via dividends, could I use the incorporated account to pay bills/mortgage, or is that not possible because it would be under my personal name?
@jessicamoorhouse
Жыл бұрын
Definitely talk to an accountant so they could give you specific advice on this, but in general it sounds like there could be benefits to incorporating if you perceiving you're business income and employment income to exceed $200,000 total. But no, you can't pay personal bills or your mortgage through your corporation. You can only use personal funds to pay for personal expenses.
@royalg4107
Жыл бұрын
Very helpful! I’ll check out your accountant recommendation on your site. Thanks!
@AlshiemaSaheed
6 ай бұрын
Hi Jessica, I am thinking of opening an Etsy shop selling digital wedding invitations. I have already opened my shop and I'm working on my designs. Do I really need to open a sole proprietorship? And now if my business doesn't make much sales? Isn't that a waste of time and money to do that? And If it's a good route to do the sole proprietorship after the 5 years do I need to renew it, or how does that work? I live in Ontario, Canada
@jessicamoorhouse
6 ай бұрын
If you're going to use a different business name than your legal name, then yes you have to register your sole prop business. It's a very minimal cost to doing so and you can find more details here on how to do it www.ownr.co/blog/register-a-sole-proprietorship-ontario/
@AlshiemaSaheed
6 ай бұрын
@jessicamoorhouse - Hi Jessica, Thank you for your response so quickly! ❤️ - If I was using my name I would still need to register it as well?
@jessicamoorhouse
6 ай бұрын
As explained in the article I shared, no.
@CHEFJMR
2 жыл бұрын
Hi My friend Likeeeeeee
@josannefromin7750
2 жыл бұрын
I have got time I spend trying to find out the info. There it is! I am trying to register the ETZY company and on the info regarding my VAT ID "Value Added Tax"" information to write into the info document. I have tried to get the info but I have no idea of were to find it because my Sole proprietorship has just been open 1 month ago. What or were do I find out the code of VAT ID please please please what do I do!
@jessicamoorhouse
2 жыл бұрын
VAT ID is only if your business is based in the EU, Norway, Switzerland, or the UK. If you're Canada-based, then you don't put in VAT. Instead there should be a section to input your provincial sales tax IDs or GST/HST. help.etsy.com/hc/en-us/articles/360058652054?segment=selling
@olspcorp
Жыл бұрын
Thank you so much for this video, it was very informative. With your experience what would you suggest for a person who is just starting out but is a legal professional? Would you Incorp or d Sole prop?
@jessicamoorhouse
Жыл бұрын
I'd suggest talking to a business accountant about this, they'd be able to give you some specific advice and guidance.
@olspcorp
Жыл бұрын
@@jessicamoorhouse Thanks so much. I appreciate you getting back to me 😁
@mdhelaluddin2594
8 ай бұрын
Can i incorporate my rental income business?
@jessicamoorhouse
7 ай бұрын
Technically yes but there are pros and cons to doing so financialpost.com/investing/fp-answers-rental-properties-corporation-save-taxes
@annadesn665
2 жыл бұрын
Hi Jessica, I'm not sure if you are familiar with Print of Demand business format. I'm planning on opening an Etsy store and if everything goes well - a Shopify store. I already have one Etsy store with handmade items, it's a sole proprietorship, and it's more of a hobby than any income. I was thinking of registering the new business as a corporation, having in mind what I have planned for it. I believe I can succeed with this business model, as I am a designer and currently employed with a company that does photo books, mugs, t-shirts etc in Canada as "POD middle man", so I do have some idea about what I am doing... I wanted to use OWNR , I believe it'll "only" cost $199 after they refund me for joining with RBC. Any advices? Should I do sole proprietorship first and then see, or should I go for corporation?
@jessicamoorhouse
2 жыл бұрын
In general, I feel like if it's a very new business, just start as a sole proprietorship because it's very easy to incorporate after. But once you incorporate there's no going back. But since you mentioned you have a full-time job, depending on your tax bracket, a corporation may be able to help with your taxes (an accountant would be able to provide more guidance).
@annadesn665
2 жыл бұрын
@@jessicamoorhouse thanks for the reply! Yep I think I will speak to an accountant and see which option is the best for me.
@jessicamoorhouse
2 жыл бұрын
@@annadesn665 Awesome!
@jaswindersingh4496
9 ай бұрын
I want to open the partnership business however i am unable to see the partnership option in the ownr website while setup the business. Still struggling 😢
@jessicamoorhouse
9 ай бұрын
I'd suggest talking with their support team but from what I can gather they only offer sole props and corps. www.ownr.co/blog/partnership-agreement/
@jaswindersingh4496
9 ай бұрын
@@jessicamoorhouse thanks 🙏
@howshaestyles
Жыл бұрын
I’m thinking about opening up my own hair studio/salon in my mothers basement of her house which I am renting. My hopes are to one day quit my job this year and open up my business full time. Is there any advice you can give me for how much money I would need to save up to do so? And what would I need to get for example a lawyer or accountant? I was thinking about opening up a sole proprietorship 😅 your advice would mean a lot in this time lol
@jessicamoorhouse
Жыл бұрын
One thing you need to be careful of is having clients on your personal property. Make sure to get good business insurance specific to a salon owner. You can find a insurance broker for more info but here's an example: www.zensurance.com/beauty-insurance In terms of how much money you'd need to set up, an accountant could likely help you with that to figure out your business emergency fund, equipment costs, other business expenses. You can do a google search for accountants in your area or maybe even find one who specializes in working with salon owners. I'd also suggest finding some online community (Facebook, Reddit) where you can talk to other salon owners and get info about the dos/don'ts to avoid mistakes.
@howshaestyles
Жыл бұрын
Thank you for your response and advice it is very much appreciated 💗
@jenniferg3247
Жыл бұрын
Do you recommend getting buisness insurance for a sole proprietorship or just when your incorperate? Also when you have a simple website under your name should that have buisness insurance? Thanks😊
@jessicamoorhouse
Жыл бұрын
Business insurance is essential no matter what kind of business structure you have. If your business right now is just a simple website, you may still want to consider Errors and Omissions Insurance.
@tomislavlulic9330
10 ай бұрын
If you had 1 million dollars in a business account and paying yourself as a employee, when would you be able to take the money out of business? Or lets say you sold the business with that much money in account....what would happen to that money ? Would you get the 1 million dollars as the owner but pay full tax on it ?
@jessicamoorhouse
10 ай бұрын
If you had a million dollars inside the business, you can take that money out any time. But you need to determine if when you are taking the money out, is it a dividend, bonus or salary as there are different tax rules. You can find more info about there here: www.advisor.ca/tax/tax-news/how-to-extract-cash-from-a-corporation/
@tomislavlulic9330
10 ай бұрын
@jessicamoorhouse thanks for the link....if you did a video on that be great 👍
@heatherryang3505
Жыл бұрын
If I want to run an e-commerce store and operate across Canada&internationally, should I incorporate my business immediately? Or can I operate with sole proprietorship registered in one province?
@jessicamoorhouse
Жыл бұрын
You can start out as a sole prop and then incorporate later. Might be the best idea since incorporation can be pricey to do including the annual costs, so may not make sense before you've even made a profit in your business. But really depends on your business, would always recommend talking to an accountant.
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