The word incorporate can send intimidation signals to your brain.
You might be thinking of starting a business or thinking about expanding but the word incorporate and the prospect of doing it can be a bit daunting.
As your business grows, there are many stages- like adding equipment, adding staff, building income and cash flow. Incorporating your business is often the next step for many small businesses.
Incorporating your business is a big decision. But, when you're in the right stage, it can be the best thing you do. It's worth taking the time to explore your options and find out if incorporation is right for you.
You can incorporate provincially or federally. The advantage of federal incorporation is that you have the right to use the name across Canada.
There are many advantages to incorporating, but four of the most important ones are:
First, you will most likely lower your tax rate. Corporations are taxed separately from their owners.
Secondly, with a corporation, you will be able to limit your liability.
Third, as a corporation, you may enjoy easier access to financing.
Finally, corporations may be able to borrow money at lower rates than individuals can.
At Dana Snedden CPA Professional Corporation, our Accountants offer Small Business Accounting Services, Personal and Corporate Tax Services, Bookkeeping, Payroll, and other Accounting Services to clients in Oshawa, Whitby, Clarington, Courtice, Ajax, Pickering, Bowmanville, Newcastle and most of Southern Ontario.