Expense Prior to Incorporation

Hello. I need to know if I can capture this expense or not...

I PAID for a training course in September 2013, incorporated my business in November 2013 and the actual course took place December 2013 AFTER incorporation. Can I claim the expense with the business even though the payment occurred prior to it's incorporation?

Thanks for the replies!

section divider

You didn't say whether or not you were in business prior to incorporating. If you were already in business as a sole proprietor, then the course would be expensed in that business.

If you were not in business prior to incorporating and the course training relates directly to earning incoming for the corporation, then I'm fairly certain you can expense/capitalize it as part of your startup costs.

Comments for Expense Prior to Incorporation

Click here to add your own comments

Sep 23, 2016
by: Arlene, Canada

I have just incorporated my company of 9 yrs and also changed the name. Do I have to start a new set of books or can I just keep going.

Sep 23, 2016
by: Lake

Yes you need to start a new set of books and open up new bank accounts.

The most difficult thing that sole proprietors need to be cognizant of is that the corporate entity has its own unique legal identity separate from you.

It is really important to understand that the corporation's money and other assets are no longer yours unlike when you ran your proprietorship. There are specific, inflexible rules on how to remove and cash and assets from the corporation so be sure to read up this topic BEFORE you have a taxable nightmare.

Check out my chat on this topic.


Click here to add your own comments

Return to CCPC.

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.

 Keep Your  eDocuments Safe And Secure… $7 USD
Version 2 now out
Bigger and Better

Your Learning Curve!


Warm up your tea cup and check out these chats ...

Click on image above to read the chat.

Purchasing These Products Through My Links Helps To Support This Site

Click on image above for my review.

Join Me On Facebook

Help support this site by "liking" me! Here's where I post current information.

Listed Under Websites NOT Local Business.
This website is not associated with the business operating in Bonnyville AB.

A Handy Reference