Denounce with righteous indignation and dislike men who are beguiled and demoralized by the charms pleasure moment so blinded desire that they cannot foresee the pain and trouble.
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Business Incorporation Services
What is Incorporation?
Incorporation creates a separate legal entity, protecting business owners from personal liability and offering tax advantages. Businesses can incorporate at the federal or provincial level.
Benefits of Incorporation
✔ Limited Liability – Owners are not personally responsible for business debts.
✔ Lower Corporate Tax Rates – Pay less tax compared to personal income rates.
✔ Income Splitting – Distribute income among family members for tax savings.
✔ Easier Business Growth – More access to funding, investors, and government grants.
✔ Business Continuity – The company remains even if ownership changes.
📌 Did You Know?
Canadian-controlled private corporations (CCPCs) benefit from a Small Business Deduction (SBD), reducing tax rates on the first $500,000 of active business income!
2. Partnerships in Canada
A partnership is a simple business structure where two or more people share ownership, profits, and responsibilities.
Types of Partnerships
🔹 General Partnership (GP) – All partners share management and personal liability for debts.
🔹 Limited Partnership (LP) – Some partners invest but have limited liability.
🔹 Limited Liability Partnership (LLP) – Common for lawyers, accountants, and consultants to protect against liabilities from other partners.
Key Considerations for Partnerships
❌ No Limited Liability – General partners are personally responsible for business debts.
📊 Pass-Through Taxation – Profits are taxed on partners’ personal tax returns.
💼 Less Formality – Easier to start and manage than a corporation.
Incorporation vs. Partnership: A Quick Comparison
| Factor | Incorporation | Partnership |
|---|---|---|
| Liability Protection | ✔ Limited | ❌ General Partners are personally liable |
| Tax Benefits | ✔ Lower corporate tax rates, income splitting | ❌ Profits taxed at personal rates |
| Setup & Compliance | ❌ Higher costs & regulations | ✔ Simple & cost-effective |
| Funding & Growth | ✔ Easier access to bank loans & investors | ❌ Harder to raise capital |
| Business Continuity | ✔ Exists beyond owners | ❌ Ends if a partner leaves (unless agreed otherwise) |
💡 Need Help Choosing?
As your trusted CPA firm we can help you decide which structure is best for you and set you up!
