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Why Incorporate?

Many small businesses can benefit from incorporation.  Below are four 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 (federal and provincial) for the first $500,000 of active business income is about 14% compared to the top personal tax rate of about 50% (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

    • In many business sectors, particularly motion picture and TV production, IT services, tattoo parlours, and construction, employers 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 all of the directors, officers, and shareholders of the corporation to be non-residents of Canada.


Attract Investors

    • Investors are more likely to invest in corporations than sole propietorships or partnerships

    • You can easily sell portions of the corporation's stock to investors and offer solid exit strategies that protect both the corporation and the investor


Download our Incorporation Information Form now, or check out our most popular small business incorporation packages, including all government filing fees and taxes:

Standard BC Incorporations - just $795

Standard Federal Incorporations - just $795

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


Incorporating can improve your business image.