I am researching various options as I self incorporate my business. As the incorporator, I am also the only director. Do I need to assign shares to myself immediately?

I haven't yet decided between earning through dividends, or as a salaried employee, but can I start using the money for personal needs, but later decide whether to claim as dividends, or as a salaried employee?

Bonus Question: Can I pay myself as a contractor (I already have an HST account), working under my corporation?

  • Not sure what the first question means. If you are the owner of a company then you are automatically a shareholder, with a share of 100%. – DJClayworth Mar 30 '18 at 3:13
  • I've incorporated. I'm the only Director. Ofcourse, as the only Director, I can assign myself 100% of the shares at any time, but I haven't yet - i.e. no paperwork filed in the corporate minutebook. That's my question - can I stay in limbo, until some point in the future when I decide what percentage to grant myself, and others that I partner up with. – Fshafique Apr 1 '18 at 4:25
  • I'd maybe want to check with a lawyer, but I'm pretty sure that if you created the company you are it's sole owner, which means you are 100% shareholder. You can assign shares elsewhere, but unless or until you do I think you own all of them. It's shareholders who get to appoint directors, so obviously you are that shareholder. – DJClayworth Apr 1 '18 at 18:27

This is only an answer to the Bonus Question - I just stumbled upon this article: Can a Shareholder Be an Independent Contractor to Their Own Company?

So, apparently, this has been tried before. I think the gist of it is that:

... the courts will examine the contractual relationship or the behavior of the parties, such as were invoices issued and whether or not the worker registered for GST/HST purposes and made various other filings as an independent contractor.

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