Incorporation (as opposed to partnership, sole proprietorship or joint venture) is usually the most useful way of organizing a business. Incorporating under Ontario law offers advantages to businesses such as tax deferrals and savings, capital gains exemption, and limited liability to creditors. While the advantages may appear great, there are a few disadvantages to consider as well. Businesses not operating at a break-even point shouldn’t incorporate from a tax perspective, as losses in a corporation can’t be transferred to its shareholders, whereas an unincorporated company would be able to use these losses against income earned, thus reducing the companies taxable income.
There are various pros and cons with respect to incorporation, and our experienced business incorporation lawyers will help answer your questions and guide you to the best solution based on your unique business needs and legal requirements. Stewart Esten Law Firm has a long history of assisting the Barrie business community in creating and maintaining the appropriate vehicle for the business needs of its client. Andrew K. Zyp, Miranda Cudmore and Christopher Shultz are professionals with the experience to deal with any situation your business needs may present.