12 Nov Sole Proprietor vs Incorporation
Deciding between Sole Proprietor vs Incorporation?
Deciding on whether you should incorporate your business or operate as a Sole Proprietorship is a decision that you should put some thought into. Taking into account some of the Pros and Cons of Sole Proprietor vs Incorporation in the below diagram:
Depending on what your client spectrum is and how you plan to structure your client base/segment, this should be part of the decision-making process on whether you should operate as a Sole Proprietor, or venture down the Incorporated path.
Example: If you find that your income fluctuates significantly from one year to next, you could benefit from using your incorporated business to level out your personal income over a couple of years, with the aim of lowering your overall income taxes. (12-13% Corporate Tax rate vs 40-50% Personal Tax rate)
When deciding on Sole Proprietorship vs Incorporation, it’s important to know all aspects of how this will change your business. Many people have attempted to go through the incorporation process themselves and have found it very cumbersome. This is where we can help. Feel free to book an appointment to further discuss.