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My friend is currently doing a proposal to deal with past taxes owing from being a self proprietor in construction. Can he start a ltd company (incorporate) to do his business or does he need to be in good standings with the federal government before doing so. This situation is in Alberta Canada thanks.



Grant Thornton Limited



Dec 03, 2015



Hello, If your friend is currently in a proposal compromising his debts to Canada Revenue Agency he is still able to open a limited company and act as director. He should be in good standing with the current proposal payments and personal tax filings. If your friend opens a limited company, I would suggest that he remits his taxes and GST on time each month to prevent additional taxes from being payable.

Susan Methuen
T 403-310-8888


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