What Are The Benefits Of Incorporation?

ByLaura Harvey
Incorporation And Its Benefits

Originally Published: Feb 6, 2017

Businesses who choose to incorporate acquire many benefits. Although there are a variety of business structures that you can choose from, understanding these benefits can help you decide if incorporation is right for you.

Incorporating your business can provide tax, liability, financing, and other benefits. The following will teach all about the benefits of incorporating your business so that you implement the right structure that positions you for lasting success.

Incorporation and limited liability

Liability is an important aspect to consider when running a business. A corporation may limit the liability from the individuals who own the corporation. It may protect the individuals from being responsible for any debts that the corporation incurs.

Corporations create separate legal entities

Incorporating a company is a separate entity from those who incorporate the business. The corporation functions as its own entity and may obtain its own financing and assets. It may borrow and lend money.

Incorporating your business allows you to create a new legal entity that is separate from the company’s members and shareholders. This provides further protection and is one of the biggest benefits of incorporation.

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Tax benefits

Most businesses seek to leverage as many tax benefits as they can. Incorporation allows your business to be taxed at a low rate when compared to the tax rate for individuals. It separates the tax burden of shareholders from those of the corporation.

Incorporation and financing

Corporations often receive better access to the financing needed to grow the business. Lower interest rates may be granted to businesses that are incorporated, as banks and other financial institutions view these loans as having a lower risk when compared to others.

Incorporating your business

There are a number of steps required to incorporate your business. In Canada, businesses can be Provincially or Federally incorporated.

We provide businesses with the best options available to meet their needs so that they can achieve the benefits of incorporation.

Businesses must submit the proper applications along with their business name and the legal names of its directors. A certificate of incorporation is given to the business, allowing it to operate as a separate legal entity.

Federal incorporation is an option for businesses that plan to operate in more than one Province. Federal incorporation can also provide your business with a higher level of credibility within your industry.

Ontario incorporation is typically completed when the business will exist in the Province of Ontario solely. This does not limit the access to clients or customers around the world.

Tax Filings must be completed with CRA each year by corporations, which makes it essential that you keep organized records of this information when operating your business.

We recommend that you have a full understanding of all of the requirements prior to incorporating your business in order to avoid any unwanted issues or delays.

Incorporate in Ontario Online Now

These are some of the most important benefits of incorporation. Understanding the requirements of incorporation helps your business achieve the financial, legal, and tax benefits that help you reach your long-term goals.

Speak With One of Our Experts today to learn more about incorporating your business in Ontario.

Laura Harvey
Laura Harvey

Laura Harvey stands as a beacon of entrepreneurial support and expertise, embodying the spirit and drive of the community she serves. As the proud owner of Ontario Business Central Inc., Laura's journey is one of dedication, passion, and an unwavering commitment to nurturing the entrepreneurial landscape in Canada.

With over three decades of experience as a corporate specialist coupled with over 25 years of entrepreneurial ventures, Laura brings a wealth of knowledge and insight to her role. Her expertise is not just theoretical; it's built on the real-life challenges and triumphs of navigating the business world. This unique blend of professional and personal experience positions Laura as a relatable and trusted guide for those embarking on their entrepreneurial journey.

Beyond her role at Ontario Business Central, Laura has extended her outreach through the innovative YouTube series "Taking the Leap." This platform allows her to connect with new business owners, offering them a stage to share their stories and insights. "Taking the Leap" is more than just a series; it's a community where aspiring entrepreneurs can find inspiration, learn from the experiences of others, and gain practical advice on crucial corporate tasks like registering a business, updating business information, understanding tax account intricacies, and much more.

Laura's contributions extend into the digital world through her in-depth blogs for Ontario Business Central. Here, she delves into topics essential for entrepreneurs and business owners looking to start, manage, and grow their ventures. Her writing is a reflection of her passion for supporting entrepreneurial advancement and a testament to her deep understanding of the corporate sphere.

Laura Harvey is not just an entrepreneur; she's a mentor, guide, and fellow traveler on the path of business ownership. She embodies the ethos of "walking the walk," providing both the tools and the encouragement for others to thrive in their entrepreneurial endeavors. Whether through her written words, her YouTube series, or her hands-on approach at Ontario Business Central Inc., Laura is dedicated to uplifting and assisting new and established business owners alike.

You can find Laura on Linkedin and Twitter and Youtube.

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Taking The Leap YouTube Series