Your Next Business Move: Incorporating
Finding the right type of incorporation for your business depends on your particular situation and needs. You may have a sole proprietorship or partnership now, but in the future you may wish to expand your operation, or need more information on why you should choose incorporation.
First, you will need to decide if you want your registered office to be located locally within one province or territory or whether you want the flexibility of being located anywhere in Canada. You may only be interested in keeping your business within your province or you may want to expand on a more global scale.
Some of the benefits of incorporation are:
- Separate identity – separate legal status from those involved in the business
- Limited liability – shareholders not responsible for debts, obligations and liability
- Lower corporate tax rates – business is taxed separately from owners
- Greater access to capital – financial institutions often see incorporated businesses as less risky
- Continuous existence – even upon death of owners transfer can be made to shareholder heirs
- Name protection – either within the province or territory or across Canada
Another factor that may help you decide is the cost to incorporate. Incorporation fees are dependent on the type of incorporation you choose or the location. You may also be required to file reports on an annual basis, depending on the type of incorporation you choose.
To learn more, check out our forms of business organization section.