There are several advantages to incorporating your business. Using your personal identity to get a business started can be common, but as time goes on and your business starts to grow, it is not a good long-term strategy. If your company should encounter legal problems or have liabilities such as those owed to creditors, you will be personally exposed to the debts that the business may have accrued. Incorporating can help shield your family’s personal assets from being exposed to such liabilities.
Once a company is incorporated, the business will become subject to lower corporate income tax rates. Corporations are typically subject to more favourable tax rates as compared with the individual tax rate. Lower tax rates result in more money being available to help grow the business. Furthermore, corporations often also allow for income splitting between family members which can also result in further tax savings in comparison to operating a business as a sole proprietorship. Income splitting is done using family members such as spouses, parents and children; by utilizing family members in lower tax brackets, you may be able to bring down your family’s overall tax burden by income splitting using a corporation. We do have the business registered services and ready to help for
- Business Name search and registration
- Incorporation of a business, provisional and federal
- Other allied account registration of HST, Payroll etc. with CRA