What are the advantages of incorporation?
The main advantages of incorporation include limited liability and significant tax savings. Other advantages include income splitting opportunities, continuous existence, transferability of ownership, and ability to take advantage of the Lifetime Capital Gains Exemption.
How does incorporation protect me from personal liability?
Because the corporation owns the assets and debt rather than the owner, the owner’s personal assets will be shielded from creditors and lawsuits.
What are the disadvantages of incorporation?
Setting up a corporation is costly, maintenance of corporate records is required, close regulation, and the need for directors to prove their residency or citizenship.
