Incorporate Your Business
Are you looking to incorporate your business? If so, look no further. The Business Management Group offers incorporation services, among other business corporate services.
There are countless advantages to incorporating a business in Canada. Here is a list of some of the many benefits:
With proper tax planning, incorporated businesses would see much reduced overall tax rates than other unincorporated businesses. Should a corporation be deemed a Canadian-controlled private corporation (CCPC), there are additional tax reductions such as the Federal Small Business Deduction (SBD). Shareholders of the corporations may also make further use of tax benefits by paying themselves in dividends, which would reduce the burden of contributing to CPP. This would also allow the individuals greater options in planning their investment and retirement. There are many other tax planning advantages to incorporating, contact us to learn more about these.
Incorporating limits the liability of the business on its owners, which in turn protects the individuals from most debt incurred by their business. However, sole proprietors are wholly responsible for the liability of their company. By incorporating the business, owners would have protection from most creditors such as suppliers.
Ability to Acquire Financing
Corporations are considered separate entities, meaning that they can borrow and lend money, and acquire their own financing which can lead to increased growth. Corporations can also raise capital through equity financing by selling stocks to investors.
The potential number of different owners for an incorporated business does not have a limit. Ownership in a corporation is more desirable than in other businesses, as shareholders are only liable for their stake in the company, based on how much they have invested. Additionally, ownership of a corporation is very easily transferable, as it only involves the acquisition and sale of shares between owners.
Improved Customer Perception
Corporations tend to appear more legitimate and desirable to potential customers, which is why many business owners opt to have “Inc.”, “Ltd.”, or “Corp.” at the end of their company’s name. This seemingly small detail can create the impression of stability for your business in comparison to your unincorporated competitors. Corporations also tend to appear much larger in size and operations, which again positively affects customers’ perceptions of a business.
To find out if incorporating is the right decision for your business, and to begin the application process, you can start by filling out our Register a Corporation Form.