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Why Incorporate?

Many small businesses can benefit from incorporation.  Below are three reasons why you might consider incorporating your business.

 

Save Your Money

    • Shareholders of corporations have limited liability for business risks, and are almost never personally liable for the acts of the directors, officers or other shareholders.

    • You can use a corporation to save tax or to defer paying tax to a later date because the small business corporate tax rate for the first $500,000 of active business income is about 13% compared to the top personal tax rate of about 44% (in BC; other provinces differ somewhat).

    • Corporations don't have withholding taxes, CPP, or EI deducted by companies that hire their services.

 

Improve Your Business Image

    • Incorporated businesses have a better "image" than unincorporated businesses.

    • Incorporated companies are more likely to attract investors than a sole proprietor or partnership.

    • A Canadian corporation is well respected worldwide and is particularly well suited to market goods and services in North America.

 

Make Your Business More Desirable to Customers

    • Employers in many business sectors, particularly motion picture and TV production, IT services, tattoo parlours, and construction, prefer to hire corporations rather than individuals to save money and increase certainty.

    • Corporations cannot be deemed employees, as often happens when employers hire individuals as independent contractors.

    • It is easier to find work if you offer your services as a corporation. However, if your corporation has only one customer, you should discuss this arrangement with us, as your corporation could end up paying much higher taxes as a result.

    • North American customers are often reluctant to buy goods and services from foreign-based corporations. If you live outside North America but wish to sell your goods and services here, consider setting up a British Columbia corporation. With some tax and reporting implications, BC allows 100% of the directors, officers and shareholders of the corporation to be non-residents of Canada.

 

Check out our most popular small business incorporation packages:

Standard BC Incorporations - just $795

Standard Federal Incorporations - just $795

Virtual Office Incorporation Package - $1396 for BC, $1595 for Federal

 

Added Bonus: - Easy access off Highway 99 - Lots of FREE parking!