Incorporation Services

Incorporation is a legal process that creates a distinct legal entity separate from its owners (shareholders).

Incorporation is generally undertaken because small business owners want to limit their personal liability and/or for tax advantages.   It is always wise to speak with an accountant when deciding whether to incorporate a business. There is a federal incorporation process, as well as a provincial. Our firm can advise you about the process of incorporation, the implications from a financial standpoint, as well as discuss the pros and cons.

Make an informed decision with our help.

Should You Incorporate Your Business?

Incorporating your small business offers a broad range of advantages, including:

  1. Limited Liability 
    Incorporating offers you limited liability, meaning that in the event of a lawsuit or bankruptcy, you won’t be held personally responsible for the debts of the corporation, provided you comply with government rules.
  2. Flexible Financing Options
    To raise capital for your business, incorporated businesses can issue shares to friends, family, business associates and other investors.
  3. Tax Benefits
    Corporations can benefit from lower rates of income tax and can carry forward losses from previous years to offset profits from the present year.

  4. Continuous Existence
    Because a corporation is a separate legal entity from its founder, its existence is not limited by your lifespan. This means the corporation can exist in perpetuity and be transferred to future generations.
  5. Capital Gains Exemption
    When you sell your shares from a Canadian-controlled private corporation, you can claim a one-time capital-gains tax exemption of $800,000 (certain rules apply)

Accounting for Small Business is a full service accounting firm, serving the Burlington-Oakville area. Contact Us today!