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Email this10:56 am
October 10, 2013
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Hope someone can advise me on this;
I had a incorporation from 2011 when I started contract jobs (IT). Unfortunately in early 2014 i was not able to find contracts and had to opt for a Full Time Position. Based on advice from my accountant, I closed/dissolved my corporation (stupid decision) in Sept 2014 & got all my accounts closed with the CRA.
Fast forward to present, I want to start contracting again.
I want to start contracting again. My question is should I revive the old corporation or create a new one. The fee for revival is same as that for registering a new one? If I choose to create a new one, will that raise any red flags for CRA (as I closed my previous corporation just last year)?
The main thing that I want to avoid here is any kind of audit from CRA for my old corporation (as it will be a big waste of time for me).
12:50 pm
January 30, 2009
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Hi hello2adi,
Are you sure the fee for revival is the same as registering for a new incorporation? If you revive, you need to file annual returns for the 2 years prior to revival of the corporation to be in good standing with the CBCA and there are fees for this. See below under 'Do I need to file an annual return':
https://www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs01085.html#tc01
From the above, there are other considerations to review. Also, there is the potential to open up legal issues (for example: Were there other shareholders? Do you open your new corporation up to any potential lawsuits from your clients?, etc.). Remember, if you revive the corporation, it is 'as if' it was never dissolved.
Your concern you say above, is whether you will prompt an audit from CRA. I think this could happen either way, but it may be easier to go through with a new corporation.
I'm not a corporate law expert, so I'd suggest getting the advice of others - the above is just my opinion.
Good luck!
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