What needs to be done to start an accounting business in Ontario?
By Michael Fromstein | May 22, 2011
I live in Ontario. I am a professional accountant from India and USA, and wish to start my accounting and finance consultancy in Ontario.
Should I incorporate my consultancy, form an LLP or can I do it as sole proprietor? What is the approximate cost for each entity?
Do I need to get approval from any body in Ontario before I start?
Michael Fromstein answered:
There are virtually no tax benefits from incorporating a proprietorship, an accounting practice or otherwise. Potentially, when you are making much more money than you are living on, maybe then the tax-deferral benefits justify the absolute current costs of incorporating and reporting on a corporation.
You can incorporate online, the cost varies slightly by province - by clicking on http://www.corporationcentre.ca/default.asp?affiliateid=1004 You can use a lawyer whose fees usually range from $1,000 to $1,500, in addition to government fees. You can practice unincorporated under your own name for free or register a business name online for about $60 (in Ontario).
As long as you do not call yourself a public accountant or a chartered accountant, you need no permission to offer accounting or bookkeeping services to the public. If you want to be a "Public Accountant" - you have to qualify through the local regulatory body. If you are a foreign Chartered Accountant, you can go to www.cica.ca and see what courses you have to pass to get recognized as a Canadian Chartered Accountant. You do not need any specific designation to offer financial consulting services in Ontario.