Incorporation · Accounting Setup
Business incorporation in Calgary. The accounting side.
The legal incorporation is the easy part. What I do is everything that has to happen after: CRA accounts, opening books, GST and payroll setup, and your first year-end.
Sole prop vs corporation
Should you actually incorporate?
Honest answer: not always. Incorporating costs money to set up and money to maintain, annual return filings, a separate tax return, more bookkeeping. If you’re earning $50K from your business and spending all of it personally to live, you’d pay roughly the same personal tax either way, plus you’ve added complexity.
The case for incorporating is real once you’re earning meaningfully more than you spend, and you can leave profit inside the company taxed at the small-business rate (about 11% in Alberta, federal-plus-provincial combined). Add liability protection, name protection, and credibility with clients, and the math often works.
If you’re unsure, that’s exactly the conversation to have on the 30-minute call. Sometimes the answer is “stay a sole proprietor for another year and revisit.”
What I do
The accounting setup after you incorporate.
CRA business accounts
Setting up your Business Number (BN) with CRA, plus the program accounts you need: GST/HST (RT), payroll (RP) if you’ll have employees or pay yourself a salary, corporate income tax (RC), and import/export (RM) if applicable. Done once, correctly, with the right effective dates.
Opening balance sheet
If you rolled assets in from a sole proprietorship, that needs a Section 85 rollover election or a straight-up purchase agreement. If you’re starting fresh, we book your shareholder loan, share capital, and any equipment correctly on day one.
First-year T2 prep
Your first corporate year-end. The work is heavier than later years because everything is being set up: GIFI mapping, depreciation schedules, opening retained earnings, RDTOH and CDA accounts started.
Owner-manager compensation
How you’ll pay yourself: salary, dividends, a mix, or shareholder loan repayments. Set up correctly from the start. CPP, RRSP, and mortgage-qualifying implications all factored in. See corporate tax.
What I don’t do
The legal side stays with a lawyer or service.
I don’t file articles of incorporation. That’s a legal step, and it’s handled by either a lawyer or an online service like Corporations Canada Online (for federal) or the Alberta Corporate Registry (for provincial). Cost runs from about $250 if you DIY through the registry, to $1,200+ if you use a lawyer for a more complex share structure.
If you’re not sure which route to take, I’ll point you in the right direction on the consultation. I do everything that happens after the legal incorporation is complete.
First 12 months
What to expect after incorporating.
- 1
Month 1
Set up CRA business accounts, bank account in the corporation’s name, basic bookkeeping software. Pick your fiscal year-end.
- 1–3
Months 1–3
Start tracking transactions properly from day one. If revenue is approaching the $30K GST threshold, register early.
- 4–9
Months 4–9
Monthly bookkeeping rhythm. First payroll runs if you’re paying yourself a salary or hiring. First GST filing once you cross a reporting period.
- 10–12
Months 10–12
Year-end approaches. Owner-manager planning conversation: how much salary, how much dividend, what to leave in the company. First T2 prepared.
Pricing
How a consultation works.
Incorporation setup is priced as a one-time engagement. On a 30-minute call I’ll ask where you are, about to incorporate, just incorporated, or sole-prop wondering whether to take the step, your revenue, your business type, and whether you’ll hire. Then I quote upfront.
Ongoing monthly work (bookkeeping, GST, payroll) is priced separately and only added if you want it. Plenty of clients incorporate with me and handle their own books for the first year before bundling in.
Service areas
Calgary and nearby.
The office is in northeast Calgary, but most of my work happens by email, phone, and secure file upload. I take clients from across Calgary, Airdrie, Okotoks, and Cochrane, and a fair number from further afield once they’re used to working remotely.
- Calgary
- Airdrie
- Okotoks
- Cochrane
FAQ
Frequently asked questions
At what income should I incorporate?
Rough rule: when you’re consistently earning more than you need to spend personally. Below that, incorporating just adds cost and complexity, you’d pay yourself everything anyway and pay personal rates. The benefit of incorporating shows up when you can leave profits inside the company at the lower small-business tax rate. We can run the math on your numbers.
Federal or provincial?
Most small Alberta businesses incorporate provincially because it’s cheaper and meets all their needs. Federal makes sense if you’ll operate across provinces under one name, or you want the strongest name protection. Either works for taxes, CRA treats them the same.
Do I need a lawyer to incorporate?
Not always. For straightforward incorporations (single shareholder, no complex share structure), online services like Corporations Canada Online or Alberta’s Corporate Registry work fine. Use a lawyer if you have multiple shareholders, family trust planning, or anything custom in the share structure. Both routes work, I take it from there either way.
What about a holding company?
A holding company (HoldCo) sits above your operating company (OpCo) and is a creditor-protection and tax-deferral tool. Useful for established businesses with retained earnings, less useful for a brand-new corporation. We’ll talk through it on the consultation if it’s relevant to where you’re going.
Can I incorporate myself online?
Yes, Alberta has an online registry and there are several private services. The actual legal incorporation is straightforward. The accounting side (CRA accounts, opening books, first-year tax planning) is what most people underestimate. That’s the part I do.
What’s my first-year tax bill going to look like?
In Alberta, the combined federal-provincial small business tax rate is 11% on the first $500K of active business income for CCPCs. So if your corp keeps $100K in profit, that’s roughly $11K in corporate tax. What you pay yourself personally is taxed on top, but the planning conversation is about minimizing the combined bill, not just the corporate side.
I’ve already incorporated and want help. Can you take over?
Yes. If you incorporated months ago and haven’t set up CRA accounts, opened books, or thought about your first year-end, get in touch. The earlier in the year you do, the simpler it is.
Ready when you are.
Book a 30-minute call. I’ll listen to what you’re dealing with, ask a few questions, and tell you upfront what it’ll cost.