Should I Incorproate in Canada – All your questions answered!
The question of whether and when to incorporate seems to create lots of confusion and many online resources may seem misleading, not thorough enough or inconsistent.
Incorporating will be justified in any of the following situations:
- Better tax planning for businesses that generate more than $60,000 annual profits
- To separate business income from personal income of incorporators and retain the earnings at a lower corporate income tax rate.
- Separating the liabilities arising from business operations from personal assets of incorporators.
- Operating high risk operations and shielding incorporator’s personal assets from business liabilities.
- Working with partners and distributing control, dividends and equity among partners.
- Growing your business, employing workers, hiring subcontractors.
- Estate planning, creating holding structure and more.