Should I incorporate my business?

Incorporation is a method of carrying out business whereby a separate legal entity called a corporation is created. A new business in Canada can be incorporated federally or provincially. Federal incorporation is beneficial if your business will provide goods or services nationally, internationally, or in many but not all provinces or territories. However, if your business is primarily operating within one province or territory, provincial incorporation would be a good choice.

Benefits of incorporating:

• Limited liability of shareholders: The liability of the shareholders of the corporation is limited to the value of the assets transferred by the shareholders to the corporation. This means that shareholders can limit personal liability through incorporation.

• Separate legal entity: A corporation is a separate legal entity, meaning it can own property, carry on business, possess rights, as well as incur liabilities.

• Perpetual existence: A corporation can continue to exist indefinitely notwithstanding the death or withdrawal of director(s) or shareholder(s).

• Taxation: Corporations are taxed separately from the individuals who own the corporation.

If you need more information on incorporating your business or help in setting up one, please feel free to reach out to us.

To learn more about incorporation, please refer to the following sources:

• Corporations Canada

• Incorporation in British Columbia

• Incorporation in Ontario