Why incorporate? This is a question you may ask yourself should you plan to start your own company. Incorporating your own own company has many advantages, but it is still your choice whether or not you proceed with the incorporation or not.
The first advantage of incorporating a business is a reduction in taxes that you owe. Normally, the tax rate for an incorporated company is much lower than that of an individual, and the corporation is taxed separate from the owners. You have to remeber that your company must first earn a specific amount before you can utilize the benefits of the lower tax rate.
An incorporated business also has much better access to capital. They can borrow money from banks and other financial institutions at a much lower rate. This is due to the fact that loaning money to an incorporated company is less risk than loaning money to other types of businesses. This incorporation process also gives benefits to the company's shareholders. The liability in a corporation is limited to itself in such a way that its shareholders will not have to be responsible for the company's debts. The investment that they made when the company was formed is protected and they cannot be sued by creditors if the corporation should go bankrupt.
Read more about incorporating in Ontario here.
Incorporating your business is an exciting time as you are moving up in the business world. Good luck on your journey and hopefully you are as successful as you want to become.