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Just like to hear from you guys who have.
I don't know the rules in Canada, but in the USA, the biggest headache is having meetings and minutes and keeping them up. Most people go to an LLC unless they plan to get larger and maybe sell some stock. Subchapter S is the way to go here (if you are going to incorporate) so income passes through the corporation.
 

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I agree with Lou about the LLC. It's more protection than a sole proprietorship yet it's just as easy and inexpensive to run. You also have the ability to file at the end of the year as a corporation when you start making enough for it to be worth it.
 

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Aegis, I'm not sure of the Canadian business rules, but I would think long and hard about the risks of a sole proprietorship if it's as risky as here in the US.

One thing goes wrong, one person decides to sue, and you could lose your house, life savings, kid's college savings, etc.

You see what happens when someone get shocked in a pool.
 

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Discussion Starter · #14 · (Edited)
BBQ said:
In Canada? More likely shocked by a skate sharpening machine.
At least I won't get shot while I'm working up here. The main reason is so that they don't come after me, a few of my buddies are Incorporated and they're recommending it to me. Just thought I'd throw it out on the forum.
 

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I don't know the rules in Canada, but in the USA, the biggest headache is having meetings and minutes and keeping them up. Most people go to an LLC unless they plan to get larger and maybe sell some stock. Subchapter S is the way to go here (if you are going to incorporate) so income passes through the corporation.
This is the straight dope for the US.

Corporations and LLC's are required to pay salaries to employees, so you must pay yourself a reasonable employee salary to pay employee takes on.

With a LLC all profits are taxed at the schedule C rate of 15.3 percent, while a subchapter S corporation can see profits as dividend income / owners equity.
 
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