Buying Bitcoin Through Your Corporation in Canada | The Coin Shack
Buying Bitcoin through your corporation
Some business owners prefer to hold Bitcoin in their corporation rather than personally. It can be done, but there is more paperwork, and the tax side should be settled with your accountant first. Here is what to expect.
TL;DR
- Talk to your accountant first about whether it suits your business and how it is taxed.
- Have ready: articles of incorporation, directors and owners, photo ID for the trader, and where the funds come from.
- Pay from the corporation's own bank account.
- Require 2 of 3 people to approve moves with a multi-signature wallet, so no one person can lock the business out.
Questions for your accountant first
Whether holding Bitcoin in the corporation suits your situation, how it will be recorded on the balance sheet, and how gains or losses would be treated. We do not give tax advice, and the answer depends on your business.
What we need to open a corporate account
- Articles of incorporation and the corporation's registered details
- Who the directors are, and who owns or controls the corporation
- Photo ID for the person trading on its behalf
- Where the funds come from
Custody for a business
Decide who in the business can move the Bitcoin, and how many people must approve it. A multi-signature wallet lets you require two of three people to sign, for example, so one person leaving does not lock the business out.
Buying the amount
Payments come from the corporation's own bank account. For larger amounts our OTC Desk quotes a price for the full trade and sends the Bitcoin to the corporation's wallet.
Questions
Can the Bitcoin go to my personal wallet?
For a corporate purchase it should go to a wallet controlled by the corporation, so the records match. Ask your accountant how they want it structured.
How long does it take to set up?
Usually a few days once we have the corporate documents.
Can you talk to my accountant?
Yes, we are happy to join a call.
