| Why would you want to incorporate your own | | | | makes it seem more legitimate if the business |
| business? Well, there are several advantages to | | | | owner(s) are willing to take the extra time, effort and |
| incorporating over remaining a sole proprietor or | | | | expense to incorporate a business. Respect does |
| partnership. | | | | make a big difference in business. With respect comes |
| Separate Entity | | | | more opportunity and that can help you to develop |
| There is the fact that a corporation is a separate | | | | your business even further and eventually make a lot |
| entity and builds its own credit rating. This can be very | | | | more money than if you were a sole-proprietor. |
| useful in the long term, because then monies borrowed | | | | How to Incorporate |
| for the company do not show up on your personal | | | | When you want to incorporate the easiest way is to |
| credit report. With the corporation being a separate | | | | pay someone else to do it. However, that can be |
| entity from the owner, there is less likelihood that the | | | | costly, and you can pay hundreds of dollars more than |
| owner's personal assets can be chased in any litigation | | | | if you do it yourself. So why not do it yourself? The |
| or if there is a credit problem with the business. This | | | | least expensive option for having someone else do it is |
| protects the owner(s). Why not protect your assets in | | | | an online service that usually takes days, and still costs |
| this manner? | | | | you at least $99.00 over and above the government |
| Limited Liability in Incorporating | | | | fees and taxes. If you get a lawyer or accountant to |
| Then there's limited liability. That means that the risk | | | | do it, then you will be charged at least $200 plus the |
| that you take is limited to what you have put into the | | | | government fees (usually much more). For a couple of |
| business. If, for example, you have debts in the | | | | hours work, you can save that money for yourself |
| company name and the company suddenly has a | | | | and your business. That's like getting $100 an hour for |
| huge downturn, then the creditors can only go after | | | | your work! |
| the company assets, not your personal assets | | | | Resources to Incorporate |
| (assuming you set your company up properly). This is | | | | Your number one resource for getting the information |
| related to the former point, but also means that if there | | | | on incorporating in your jurisdiction, regardless of where |
| is another issue, such as general liability or even | | | | you are in Canada, is your provincial or territorial |
| negligence, then the person who owns the business is | | | | government. Each jurisdiction has a web site that gives |
| not necessarily liable, the business is. Of course this | | | | you most, if not all, of the information you need. |
| means that the business itself is at risk, but the owner's | | | | Sometimes it's a bit to wade through it, but it really is |
| home, car, and personal investments are not likely to | | | | worth saving the few dollars to spend the time. There |
| be at risk (a personal gauranteee can put those at risk | | | | are other resources as well, including the registration |
| through the business - so be careful before you give | | | | agencies (who usually sell kits), books you can buy, |
| such a guarantee). | | | | self-incorporation kits available through various outlets, |
| Recognition with Incorporating | | | | and some consultants who can help in this area. |
| There is also the recognition factor. People and other | | | | There's even an eBook (see resource box, below). |
| businesses are more likely to respect and honour an | | | | Good luck in your new venture! |
| incorporated business rather than one that isn't. It | | | | |