Are most HI startup business incorporated, or are they sole proprietorship?

Local Inspection Issues Canadian Home Inspectors
1

Are most HI startup business incorporated, or are they sole proprietorship? I understand its an indivdual decision and a financial one as well. Just would like to know, trying to get my head around it. I’m looking at starting my own business as a one man operation. I would like to hear other peoples stories and experiences on the startup. Thanks

2

LLC and file here in the US as S-corp on income tax. Don’t know about up there.

3

Can you LLC and then S-Corp? I had to Corp and then send in the 2553 S-Corp form after. (Ah…maybe it’s different in Canada…just noticed the Ed’s location)

-Carl

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Just noticed it’s posted in the Canadian forum also… :slight_smile:

Sorry.

-Carl

5

LLC is for the state. S-Corp is for the IRS.

6

Here in Canada it is only sole proprietorship, partnership or corporation.

Supposedly a corporation protects your personal assets better, but I have also heard that if you are getting sued, they will go after the inspector’s assets anyway. Talk to your lawyer.

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They can try, but if you’ve been doing things right… it’s impossible. Read: I formed a corporation or limited liability company. Now what? - InterNACHI®

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Interesting reading, but we are still talking Canada here. I would sure like to hear a Canadian lawyer’s opinion on this.

9

That is exactly what two Canadian lawyers have told me .
It is just a small stone and it is not much protection.
best method is own little your tools and car .

Trusting your wife and everything in her name.
Talk to your lawyer and your Charted accountant on how too protect your assets and how to do your books.

10

Ed:
If you do form a corporation be sure to distance your name from the company name
IE: When you put your name in your report use
Inspected by: Ed…“on behalf of ABC inspections Inc.”

When you sign the PIA
Sign your name “For ABC Inspections Inc”

Other suggestions made in Nick’s link are good as well.

Hope this helps

Cheers

11

I just incorporated for financial reasons. My lawyer has told me that it does little to protect you from litigation because you are the one inspecting the home and not the company. They generally will go after both and see how it washes out. If you are going to incorporate I would do it from the start and not 4 years into your career. That is what I did and it became a nightmare. Insurance, tools owned by me, vehicle owned by me all had to be carried over into the new company. A lot of time and money was used up to get it all done. In Alberta we are licensed as well. Had to get a new license for the company and also for myself. It took weeks to complete the entire process.