Advantages of Business Incorporation in Canada

Filed in archive News on July 21, 2010

© ShashiBellamkonda

It can be a big decision for small businesses to finally decide to incorporate. Paul Woolford, a tax partner with KPMG Enterprise in Toronto, Canada, shares some advice about the benefits of incorporation for both the business and the business owner. One advantage of incorporation is that your business will be able to access exemption from capital gains. Another benefit for the business owner is the protection of their personal assets.

Incorporating your business can limit your liability because incorporation creates a legal separation of your personal and business assets. Furthermore, business incorporation allows you to defer some of your expenses. These tax advantages are some of the major reasons why you should incorporate your business in Canada, however, it must be weighed up against the potential administrative and legal costs of doing so.