Whatever your startup, there’s a right way and a wrong way to get things started. One of the less pleasant but most vital tasks is getting a handle on taxation requirements.
Those will vary depending on whether you are incorporated or not. While incorporation offers some advantages once you’re up and running, don’t make the mistake of jumping in too early, advises Ed Bartucci, a tax partner with KPMG Enterprise in Toronto. “Keep in mind, you don’t necessarily need to be a corporation when you first start off because it’s likely you won’t be making money right away and will have losses.” Incorporating also means additional fees ($1,500 to $2,000) and having to do separate tax filings every year.