Anyone know how to setup a LTD enterprise?

[copeland]

With work being questionable, I've decided to make 2007 the year of the dollar. I have several investments, but what I want to try to learn, is to set up a limited liability company and test the waters of entrepreneurship. My first task is to figure out how to establish a ltd company which would have the breadth to allow me to explore several business type ventures...(say something that would allow me to try a lemonade stand and or property management)

or does anyone know of any Canadian Financial forums that could help. I'm sure there are some investors and small business owners on bc4x4

[mabb]

1.) You do not need a lawyer, you can do it yourself.
2.) Are you sure you want to? Owning your own business very often sucks.
3.) You don't necessarily need a LTD business.
4.) If you're starting your own, you DO need individualized advice not just general information
5.) Talk to My Mrs., she can tell you how and guide you through it. Call Brenda: 604-533-8663

(Yeah we need another client like ...)

[copeland]

1.) You do not need a lawyer, you can do it yourself.
2.) Are you sure you want to? Owning your own business very often sucks.
3.) You don't necessarily need a LTD business.
4.) If you're starting your own, you DO need individualized advice not just general information
5.) Talk to My Mrs., she can tell you how and guide you through it. Call Brenda: 604-533-8663

(Yeah we need another client like ...)


....like a.....???

I was think ltd for liability issues...It'd be a ground up operation with little to no cashflow untill I could devise a plan to move my piece of property into the hands of my "company"

[DMMcG]

Background for the decision: http://www.smallbusinessbc.ca/bizstart-prop.php


Incorporation:


http://www.smallbusinessbc.ca/bizstart-inc.php

http://www.fin.gov.bc.ca/registries/corppg/crcompanies.htm

[overthetop]

I have a buiness for sale that pulls in 40k from mar-sept. $70k

[copeland]

I have a buiness for sale that pulls in 40k from mar-sept. $70k

want to mail me the details?

[overthetop]

Just on my way to work. Will do after or early AM. It's over the top extreme rentals, we have Canada's first 25 foot portable climbing wall and a couple of bounce houses. Selling it for health reasons.

[Road Dog]

My first task is to figure out how to establish a ltd company which would have the breadth to allow me to explore several business type ventures...(say something that would allow me to try a lemonade stand and or property management) That's your last task. First you have to figure out what you want to do. In Canada there's no real advantage to being a limited company.

You basic choices are:
Sole Proprietor - You're the boss, janitor, and everything in between. Your business is just more paperwork on your tax form.

Limited Partnership - A bunch of you want to do something together. The net income is split between the partners.

Limited/Incorporated Company - A legally distict entity with it's own liability, taxes, etc.

Depending on what you're doing you'll need a GST number and a PST number, Visa and Mastercard merchant accounts, and maybe some form of business (liability) insurance.

[Kellykins]

And I thought we were talking about Long Term Disability. :clown

[Hayes]

Try find a community futures office in your area they can point you in the right direction. They have info on starting businesses and have access to loans if you have troubles getting funding.

[copeland]

Try find a community futures office in your area they can point you in the right direction. They have info on starting businesses and have access to loans if you have troubles getting funding.


Cool I'll have to look this up...I see an oppurtunity in my sights, but I need to be able to seperate my own liability from my "company" Anyone have any insight on how I could, if even possible, transfer a property I own personally to my company so that it had an asset to start out with?

I mean I can't just start a company and ask the bank for xx amount of dollars without the compnay holding any of it's own assets can I??

[copeland]

Limited/Incorporated Company - A legally distict entity with it's own liability, taxes, etc.



I beleive I still need a limited endeavor, I will be on my own...and it will have to be seperate from my own personal finance...

[asleepatthewheel]

I just went through all the legalities of transferring my tools and assets from a proprietorship to a limited company. My advice is to do it through a lawyer and your accountant. I thought I could do it but there's so much that has to be done properly in setting up a company that I ended up having to pay a lawyer to redo pretty well everything. I would have saved a lot of money by doing it the right way the first time. Also get an accountant to set up your books right from the beginning.

Nothing like getting a call from the tax people questioning how I did things and wanting to see proof. Sure gets the ball rolling:cwm31: . They don't take setting up a limited company very lightly, it's like creating another person.

Contact DMMcG. His office has a person that is well versed in setting up a limited company.

[copeland]

I just went through all the legalities of transferring my tools and assets from a proprietorship to a limited company. My advice is to do it through a lawyer and your accountant. I thought I could do it but there's so much that has to be done properly in setting up a company that I ended up having to pay a lawyer to redo pretty well everything. I would have saved a lot of money by doing it the right way the first time. Also get an accountant to set up your books right from the beginning.

Nothing like getting a call from the tax people questioning how I did things and wanting to see proof. Sure gets the ball rolling:cwm31: . They don't take setting up a limited company very lightly, it's like creating another person.

Contact DMMcG. His office has a person that is well versed in setting up a limited company.

thanks, any ideas on fees included in the processing? how was the aspect of transfering your tools from your proprietorship to the ltd?

Originally were the tools yours? or Bought through the propreitorship?

[asleepatthewheel]

thanks, any ideas on fees included in the processing? how was the aspect of transfering your tools from your proprietorship to the ltd?

Originally were the tools yours? or Bought through the propreitorship?

If I remember right, it should only cost a few hundred dollars to get a lawyer to do it. Being cheap, I decided to do it myself and that's where I went wrong. It's easy to set up a company, it's everything else that comes after that can really get screwed up. As an example, while setting up the company, they ask you how many shares you want to issue and what class they will be. They don't give you any advice and if you don't issue enough shares, you'll have to make changes the legal route.

Transferring the tools into the company is pretty basic. The value of the tools must be valued at fair market value and can be recorded as a loan. Remember to transfer assets to a newly formed company before it starts business otherwise it will have to pay PST on them. Also to be tax free, the company has to be 95% wholly owned and controlled by you. There are lots of rules like this that has to be taken into account. That's why I recommend getting a professional to do it for you.

The tools I had were mostly originally mine and I did buy a few thousand dollars more during the proprietorship. Make sure you pay the PST on any tools you buy and save the receipts. The tax people wanted me to show that I paid PST on the tools I bought 20 years ago and I didn't have the receipts from that long ago. If you do things properly, they won't have reason to start digging like that.

I'm only going by memory and I may be off on the rules but hopefully this will give you an idea of what you're getting into.

[ANDYrew]

I mean I can't just start a company and ask the bank for xx amount of dollars without the compnay holding any of it's own assets can I??

They usually want 3 years finacials being limited before they'll give you any credit. All of my wholesalers make you sign a personal guarantee.

You know what is easy to do though is go bankrupt. Far too ****in easy in my opinion.

[mabb]

Yeah, use a lawyer: that's a good way to waste thousands of dollars!
Completely unneccessary.
But if you won't listen to a profesional, then that's your problem.
*shrugs*