Individual vs Corporation in Canada: What's Better for Flipping on Amazon CA & How Much Does It Actually Cost?.

 Amazon Canada: Is It Worth Selling There? There are basic things to decide when you start, including whether or not to be an individual (sole proprietor) or a corporation. The choices come with varying costs, legal obligations, and long-term gains. Let’s break it down clearly.

Single Seller (Sole Proprietor) located in Canada

The Amazon business is operated by one seller in his (legal) name. This option is basic and cheap, ideal for newcomers.

Exact Costs (Individual):

1. Amazon Professional Account: CAD 29.99/month
2. Registering a business name (optional, province-wide): CAD 60–80
3. GST/HST registration: Free (compulsory if sales are taxable and > CAD 30,000/year)
4. Bookkeeping software & minimal compliance: CAD 200–500/year

 Pros:

1. Lowest startup cost
2. Simple setup and faster onboarding
3. Great for beginners trying the market of Amazon CA

Cons:

1. Unlimited personal liability
2. Limited tax planning options
3. Lower professional impressions for big suppliers or investors
4. Best for: First-time sellers, small businesses, testing products.

Corporation (Incorporated Company) in Canada

A company is a separate legal entity that is registered federally or provincially. This is the more formal option, and it’s better for long-term growth.

Exact Costs (Corporation):

1. Registration of the Corporation (Federal or Provincial): CAD 200-500
2. Amazon Professional Seller Account = CAD 29.99/month
3. Legal & documentation setup (optional): CAD 200-400
4. Yearly accounting & corporate tax filing: CAD 1,000–2,500
5. GST/HST registration: Free

Pros:

1. Limited liability (personal assets protected)
2. Improved credibility with suppliers and banks
3. Additional tax planning and reinvestment opportunities
4. Better growth potential and easier to scale/sell the business later

Cons:

1. Higher setup and maintenance cost
2. More compliance and paperwork
3. Best for: Serious sellers, private label brands and established Amazon businesses.

Which Is the Best for Amazon CA?

1. Opt for Individual if you’ve on a modest budget and require simplicity.
2. Corporation: Select this if you want to scale, create a brand or work with big suppliers.

Recommendation: It's common for sellers to begin selling as an individual and convert to a corporation once sales start taking off.