Incorporation is the legal process through which a newly formed business entity is established to protect its owners from legal liability. The incorporation procedure is governed by federal or provincial laws, depending on the jurisdiction where the corporation is established. As such, it is crucial to engage someone knowledgeable in the incorporation laws and regulations of your jurisdiction and the governing body that oversees your profession. At Business Development Services, we simplify this process by guiding you through the necessary steps and ensuring you are well informed about the requirements to proceed.

Incorporating your business offers several advantages. While starting a business using your personal identity may be common initially, it is not a sustainable long-term strategy. As your business grows, personal exposure to legal issues or liabilities, such as debts owed to creditors, becomes a concern. Incorporation provides a protective barrier, shielding your family's personal assets from potential liabilities faced by the business.

After incorporation, the business can benefit from reduced corporate income tax rates. Corporations generally enjoy more favorable tax rates compared to individual tax rates. This lower taxation means there is more capital available to foster business growth. Additionally, corporations offer the advantage of income splitting among family members, leading to further tax savings compared to operating as a sole proprietorship. Income splitting involves including family members such as spouses, parents, and children in the business, utilizing their lower tax brackets. Through income splitting with a corporation, it's possible to reduce the overall tax burden for the family.