Who the border thinks it is dealing with
Every commercial shipment is accounted for in the name of an importer of record, and that name owes whatever the border later decides. A CBSA re-determination of value, origin or classification can reach back up to four years, and it lands on the importer of record, not on whoever holds the goods by then. While the business runs as a sole proprietorship, that name is you personally, and a busy season of declarations becomes personal exposure.
The commercial side follows the same logic. Imported goods whose manufacturer has no presence in Canada leave the importer as the practical defendant when a product fails in the field, and supplier deposits, minimum-order commitments and freight contracts are signed obligations that outlive any one season. A corporation puts a legal person between all of that and your house. Insurance still responds first, and any personal guarantee you sign stays personal, so we keep guarantees narrow while the corporate wall does the rest.
The registrations that make the company the importer
The corporation cannot borrow your import identity; it needs its own. That starts with a fresh business number carrying an RM import-export program account, HST registration from day one, and the corporation's own registration in the CARM Client Portal, because CARM ties every declaration and monthly statement of account to the importer's business number. Under CARM the importer also posts its own financial security to have goods released before duties are paid; a broker's bond no longer covers the client, so the bond or cash deposit must be arranged in the corporate name before the first container sails.
- Broker agency agreement re-signed by the corporation, with portal access delegated to the broker again.
- Supplier and distribution agreements moved to the corporate name, so exclusivity and rebate terms survive the switch.
- Freight, warehouse and 3PL contracts assigned, with certificates of insurance reissued to the new entity.
Sequenced properly, the last personal declaration clears, the first corporate one follows, and nothing sits on the water in between. Our Incorporation service files the articles, opens every account and runs that sequence as one engagement.
A warehouse of stock, moved in without a tax bill
The pallets on your racking may be the largest asset you own, and selling them to your own corporation at value would trigger tax for no reason. A section 85 rollover avoids that: inventory is eligible property, so the stock transfers at an elected amount that defers the gain, papered on CRA form T2057 alongside the rest of the business assets. On the HST side, a joint election on form GST44 keeps 13% off the transfer of the business as a going concern, so no cash gets parked with the CRA waiting for a return.
| Going into the corporation | How it goes in |
|---|---|
| Inventory at landed cost | Section 85 rollover at an elected amount, gain deferred, form T2057 |
| Racking, forklifts, warehouse equipment | Same rollover, with CCA continuing inside the corporation |
| Goodwill and supplier relationships | Eligible property too, valued and documented at the transfer |
| Open purchase orders and US-dollar payables | Assigned or assumed with supplier consent, at booked value |
| HST on the whole transfer | Eliminated by the joint GST44 election on the sale of the business |
Share structure is designed the same day the assets move, because classes cost little at incorporation and plenty to repair later. The owner-pay, holding-company and exemption decisions that follow live on our importer tax planning page.
Banking that a buying cycle can lean on
Suppliers ask for deposits and letters of credit, and banks price LC facilities, forward contracts and US-dollar accounts against financial statements, so every one of those instruments is easier to obtain for a corporation with a filed year-end than for an individual with a T1. Incorporation is where that banking file starts. Walla Assaf spent years in banking and corporate finance before founding Tauro, which means the facility conversation, from what to ask for to which covenant will pinch, runs through our Business Financing Advisory rather than a referral.
The rate advantage compounds the case. Active profit kept in the corporation is taxed at roughly 12.2% on the first $500,000 in Ontario, which leaves noticeably more of each season's earnings available for the next round of supplier deposits. We incorporate import and distribution businesses across Mississauga and the GTA, quoted in writing after a free 15-minute discovery call, with the change date planned around your shipping calendar rather than ours.
