QUESTION: What are the advantages of incorporating?
TOPIC: Incorporating
ANSWER
The main advantages of incorporating are:
Limited Liability
Separate legal entity
: The act of incorporating allows the corporations to have the same rights and responsibilities under the Canadian law as a person.
Lower Corporate Tax Rates
Perpetual Existence
: Unlike a sole proprietorship or a partnership, the life of a corporation does not cease to exist upon the death of its owners. The ownership of the corporation in the event of the death of the director will simply be bestowed upon the sharholders' heirs.
More access to capital (such finances are obtained thru the act of selling shares).
For more information check FAQ at Corporations Canada at: http://www.corporationscanada.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs02194.html
