When an individual operates a business without having a
corporation it's referred to as a proprietorship business. But
when is the right time to incorporate?
If there's income in your business that you don't need
to spend personally every year, you should seriously consider
incorporating. Not only will you potentially limit liability and
protect personal assets, but the tax rates for a corporation are
lower. You can also leave money in the corporation for many years
and get tax savings that way.
Here is a closer look at the considerations involved when
incorporating a proprietorship business.
Getting started
Once you've decided that you want to incorporate, you need
to talk to both an accountant and lawyer to start planning the
process. Upon deciding the date you'd like to incorporate by,
the lawyer must file the required documents with the province where
your business primarily operates. One of the next decisions
you'll need to make will be choosing your
