Quote:
Originally Posted by bagofpucks
2) if you see this as a potential business opportunity, set up a corporation try your best to do things “right” off the bat (I guarantee you will make mistakes, I definitely did
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You don’t have to set up a corporation to have a business. There are a lot of reasons to have a corporation but there are also a lot of reasons to have a sole proprietorship. There are many things that can be done in both structures (e.g. claim GST ITCs, earn income, write off business expenses) but there are key aspects in each one that can’t be done in the other. Telling someone to incorporate a business, when you don’t understand the person, her business, or the differences, is bad advice. What if she incorporates, but is deemed a personal services corporation? She would then have to claim that income at the highest rate and many of her expenses would be denied. I would recommend not giving blanket advice like this, especially when it’s not your area of expertise. It’s the same reason I don’t tell people how to swim or how to pronounce things in Greek. It’s not my specialty.