Find the right structure Identify the best structure
to start your business
At M7, we not only help you with your business formation, but we make sure you would be able to take it to next level!
Types of business structures:
01.
Corporation
Incorporation creates a separate legal entity for your business, protecting your personal assets from liabilities. It offers tax benefits and credibility but requires more paperwork and administration, making it ideal for growing businesses.
What are the tax implications?
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Corporations in Canada are taxed on their net income, with a federal tax rate of 15% on active business income or 9% for Canadian-controlled private corporations (CCPCs) on the first $500,000. Provincial tax rates vary by region, typically ranging from 0% to 16%. CCPCs can also benefit from the Small Business Deduction on eligible income. All corporations must file a T2 Corporate Tax Return annually, with taxes due within 2–3 months and filing deadlines 6 months after the fiscal year-end. Businesses earning over $30,000 annually must register for GST/HST. Passive income is taxed at higher rates, while capital gains are taxed at 50%. Dividends paid to shareholders are taxed personally, while salaries to owners are deductible for the corporation. For compliance, consult a M7 Expert.
02.
Sole Proprietorship
A sole proprietorship is the simplest business structure, where you personally own and control the business. It’s easy to set up and offers direct profit access, but you’re fully liable for any debts.
What are the tax implications?
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Sole proprietors in Canada report business income on their T1 Personal Tax Return using Form T2125. Business income is taxed at personal tax rates, and Canada Pension Plan (CPP) contributions apply to net earnings. If annual revenue exceeds $30,000, GST/HST registration and remittance are required. Tax returns are due by June 15, but any taxes owed must be paid by April 30. Sole proprietors are personally liable for business debts. For assistance, consult a M7 Expert.
Pricing
Which business structure is right for you?
Incorporation
*Price vary according to your state location.
- Name Availability Check
- Limited personal liability
- Obtain GST/HST number
- Provincial and Federal Incorporation included
Why form your business with M7?
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We’ll guide you in establishing your business with assurance, making sure all necessary forms are filed correctly, saving both time and money, and guaranteeing your complete satisfaction.
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As a sole proprietor in Canada, your profits are taxed as personal income. Incorporating as a Canadian-controlled private corporation (CCPC) may offer tax advantages, like the Small Business Deduction. Consult a tax professional for tailored advice.
Working with M7 has been a game-changer! They helped us set up our business correctly from the start, saving us time and money by ensuring everything was in place. Now, my company has reached 7 figures. they cares about our success and consistently provides strategies that set us up for long-term growth.
The team behind M7 Services
Marcos Lopes
PCP - Founder and CEO
Matthew Lopes
Co-Founder and CFO
Adnan Khan
CPA, FCCA - Virtual CFO
Carla Cristiane
Accounting Manager
Kevin Lopes
Accounting Manager
Martin Zilz
Senior Accountant
Ravi Gautam
Senior Accountant
Alan Inacio
Accounting Manager
Marco Aurélio
Accountant
Wendel Almeida
Bookkeeper
Bhawesh Bisht
Bookkeeper
John Watson
Bookkeeper
Daniel Gonçalves
Bookkeeper
Marcel Canhada
Bookkeeper
Rodrigo Genz
Developer
Denilson Roberth
Marketing
Need help with Business Formation? Start Here
How you choose a business structure depends on a lot of things. Each structure comes with its own specific rules, requirements, and considerations. The most common types of businesses are:
- Corporations
- Sole Proprietorship
Tell us about your thoughts. We'd like to help you build your business legacy! Schedule a call today.
M7’s incorporation packages include full incorporation services, along with the preparation of your Minute Book Documents to ensure your company is legally set up.
Our incorporation packages include:
✔️ Unlimited business name searches
✔️ 1 Name reservation
✔️ Government-issued Corporation Number(s)
✔️ Government-issued Incorporation Documents
✔️ Minute Book documents
✔️ CRA Business Number
✔️ Secure business document storage
✔️ Up to 3 user accounts
✔️ Exclusive M7 Perks
✔️ Chat support
Once your business is incorporated, M7 helps you stay legally compliant by assisting with your Annual Legal Return and preparing necessary corporate resolutions.
Incorporations start at $850 (final cost depends on jurisdiction and subscription plan).
Our Sole Proprietorship Registration gets your business registered with the provincial government, allowing you to legally operate under your chosen business name.
The package includes:
✔️ Unlimited business name searches
✔️ Business registration number
✔️ Business registration documents
✔️ CRA Business Number
✔️ Secure business document storage
✔️ Exclusive M7 Perks
✔️ Chat support
A Corporation is a separate legal entity from its owner(s), meaning it has its own rights, responsibilities, and tax obligations. Corporations benefit from limited liability, meaning owners are not personally responsible for the business's debts. They may also access tax advantages, such as the Small Business Deduction, and are taxed at corporate tax rates. Corporations are required to file a T2 Corporate Tax Return and maintain separate financial records.
A Sole Proprietorship, on the other hand, is an unincorporated business owned by a single individual. The owner is personally liable for all debts and obligations of the business. Income from a sole proprietorship is reported on the owner's personal tax return (T1), and all profits are taxed at personal income tax rates. Sole proprietors have fewer administrative requirements but do not have the same liability protection as corporations.
Once your business has a CRA Business Number, you can apply for a GST/HST number.
✔️ Sole Proprietorships need to call the CRA at 1-800-959-5525 to register for a GST/HST number, as well as other CRA business program accounts (import/export, payroll, etc.).
✔️ Corporations can register for the GST/HST directly through M7 in the “Organization” tab of the M7 dashboard. The CRA payroll account can be registered at the same time at no additional cost.
A Business Number (BN) is a unique identifier issued by the Canada Revenue Agency (CRA) for tax purposes. Certain businesses are required to have a BN, such as corporations, partnerships, and sole proprietorships with employees, GST/HST obligations, or payroll requirements. All of our packages include obtaining a BN as part of the setup process.
In Canada, business entities, such as corporations, can offer tax advantages, like access to the Small Business Deduction, which reduces tax rates on the first $500,000 of active income. Corporations can also deduct business expenses, such as advertising and mileage, and benefit from credits for renewable energy, retirement plans, or health insurance. Staying compliant with financial and regulatory requirements is essential. For personalized guidance, it’s best to consult a tax professional or legal advisor, as tax rules and business structures may vary. Schedule a Call to learn more!