# AI Prompt to Compare Incorporating vs Staying a Sole Proprietor in Canada

> source: https://promptoogle.com/ai-prompt-to-compare-incorporating-vs-staying-a-sole-proprietor-in-canada/
> published: 2026-09-15T19:45:45+00:00
> updated: 2026-09-15T19:45:45+00:00
> topic: Legal

Starting a business in Canada is an exciting opportunity, but one of the first and most important decisions you need to make is choosing the right legal structure.…

Starting a business in Canada is an exciting opportunity, but one of the first and most important decisions you need to make is choosing the right legal structure. For many entrepreneurs, the decision comes down to **Canada incorporation vs sole proprietorship**.

A sole proprietorship is generally simpler and less expensive to establish, making it attractive to freelancers, consultants, independent professionals, and small businesses. Incorporation, on the other hand, creates a separate legal entity and can provide advantages related to liability protection, taxation, business continuity, financing, and future growth.

There is no universally correct choice. The right structure depends on your business income, risk exposure, growth plans, administrative capacity, and personal financial circumstances.

**AI Prompt: Evaluate My Canadian Business Structure**

```
Act as a Canadian small-business planning assistant.

Help me evaluate whether I should operate as a sole proprietor or incorporate my business.

My details:

* Business type: [describe business]
* Province/territory: [province]
* Expected annual revenue: $[amount]
* Expected annual net profit: $[amount]
* Current personal income: $[amount]
* Business risk level: [low/medium/high]
* Employees planned: [yes/no]
* Business partners: [yes/no]
* Need outside investment: [yes/no]
* Expected growth over the next 3 years: [describe]
* I expect to withdraw most profits personally: [yes/no]

Compare sole proprietorship and incorporation based on:

1. Liability
2. Tax considerations
3. Administrative costs
4. Compliance requirements
5. Ability to retain profits
6. Financing and investment
7. Business continuity
8. Long-term scalability

Give me a side-by-side comparison and identify which structure appears more suitable. Clearly state that the result is general information and that I should confirm tax and legal consequences with qualified Canadian professionals.
```

## Why Your Business Structure Choice Matters

Your business structure is more than a registration decision. It can affect your personal liability, tax reporting, administration, financing options, credibility, and what happens to the business in the future.

### 1. Legal Liability

The structure determines how closely your personal assets are connected to the business's obligations. A sole proprietorship does not create a separate legal entity, whereas a corporation is legally distinct from its owners.

### 2. Taxation

A sole proprietor generally reports business income on their personal tax return. A corporation files its own corporate tax return, while the owner may also have personal tax consequences when taking money out of the corporation.

### 3. Administrative Burden

Sole proprietorships are generally easier to administer. Corporations involve additional corporate records, filings, governance requirements, and accounting considerations.

### 4. Credibility and Growth

Incorporation can be useful when dealing with larger customers, investors, lenders, employees, or potential business partners. A corporate structure can also provide a framework for issuing shares and transferring ownership.

### 5. Business Continuity

A sole proprietorship is closely tied to its owner. A corporation, as a separate legal entity, can generally continue despite changes in shareholders or management.

**Example: Two Businesses With the Same Revenue**Imagine two Canadian consultants each generate $150,000 in annual revenue. One operates as a sole proprietor and the other operates through a corporation.

Their structures may produce very different administrative, tax-planning, liability, and profit-retention considerations even though their revenue is identical.

This demonstrates why revenue alone should not determine whether you incorporate.

## What Is a Sole Proprietorship in Canada?

A sole proprietorship is one of the simplest forms of business ownership in Canada. The business and the individual owner are not separate legal entities.

This structure is commonly used by freelancers, consultants, independent contractors, online businesses, and people testing a new business idea.

### Key Characteristics of a Sole Proprietorship

- **Simple setup:** Generally easier and less expensive to establish.

- **Direct control:** The owner makes the business decisions.

- **Personal taxation:** Business income is generally reported on the owner's personal tax return.

- **No separate legal entity:** The business is legally connected to the individual owner.

- **Potential personal liability:** The owner can be personally responsible for business obligations.

### Example: Freelance Graphic Designer

Maria works from home as a freelance graphic designer. She has a handful of clients, limited business expenses, no employees, and expects modest profits during her first year.

Because her business is relatively simple and low risk, she may prefer the simplicity of operating as a sole proprietor rather than taking on the additional administration of a corporation.

**AI Prompt: Should I Start as a Sole Proprietor?**

```
I am starting a small business in Canada and want to determine whether a sole proprietorship is appropriate for my first 1–2 years.

Business:

* Industry: [industry]
* Province: [province]
* Expected revenue: $[amount]
* Expected profit: $[amount]
* Number of clients: [number]
* Employees: [number]
* Business debt: $[amount]
* Contractual/legal risk: [low/medium/high]
* Expected growth: [describe]

Explain the advantages and disadvantages of starting as a sole proprietor. Then identify what future events should trigger me to reconsider incorporation.

Do not provide legal or tax advice; identify questions I should ask a Canadian accountant or lawyer.
```

## What Is a Corporation in Canada?

A corporation is a separate legal entity from its owners. In Canada, businesses can generally incorporate federally or under provincial or territorial legislation, depending on their circumstances.

### Key Characteristics of a Corporation

- **Separate legal entity:** The corporation is distinct from its shareholders and directors.

- **Limited liability:** Shareholders are generally not personally responsible for corporate debts simply because they own shares, although important exceptions can apply.

- **Separate taxation:** The corporation generally files its own corporate tax return.

- **Additional administration:** Corporate records, filings, accounting, and governance requirements add complexity.

- **Growth potential:** Corporations can provide a structure for multiple shareholders and investment.

### Example: Growing Technology Company

David and his partners are developing software for international customers. They expect to hire employees, sign larger contracts, protect intellectual property, and potentially seek outside investment.

Compared with a small freelance business, the company's risk and growth requirements make incorporation a much more relevant option to evaluate.

**AI Prompt: Analyze Whether My Startup Should Incorporate**

```
Act as a business-structure research assistant.

Analyze whether incorporation should be considered for this Canadian startup:

* Industry: [industry]
* Founders: [number]
* Province: [province]
* Expected first-year revenue: $[amount]
* Expected 3-year revenue: $[amount]
* Employees planned: [number]
* Outside investment planned: [yes/no]
* Intellectual property involved: [yes/no]
* Customer contracts: [describe]
* Business liability: [low/medium/high]

Compare operating as a sole proprietorship versus corporation.

Focus on:

* Liability
* Ownership
* Investment
* Tax considerations
* Administration
* Hiring
* Intellectual property
* Future sale of the company

Highlight questions that require advice from a Canadian lawyer or accountant.
```

## Canada Incorporation vs Sole Proprietorship: Complete Comparison

### 1. Legal Liability and Personal Asset Protection

One of the biggest differences between the two structures is legal separation.

#### Sole Proprietorship

Because there is no separate legal entity, the owner can be personally responsible for business debts and obligations. Depending on the circumstances, personal assets may therefore be exposed to business liabilities.

#### Corporation

A corporation is a separate legal entity, and shareholders generally benefit from limited liability. However, incorporation is not an absolute shield against every type of personal liability. Personal guarantees, certain statutory obligations, director responsibilities, and other circumstances can create personal exposure.

**Example: A Business Contract Dispute**Suppose a consultant signs a large contract and a serious dispute arises.

A sole proprietor and a corporation may face different legal consequences because the corporation is a separate entity. However, the exact outcome depends on the contract, guarantees, applicable law, insurance, and circumstances.

**AI Prompt: Identify My Business Liability Risks**

```
Help me create a business-risk checklist for my Canadian business.

Business type: [business]
Province: [province]
Customers: [individuals/businesses/government]
Average contract value: $[amount]
Employees: [number]
Contractors: [number]
Business assets: $[amount]
Business debt: $[amount]
Insurance: [describe]

Identify the major categories of liability I should discuss with a Canadian business lawyer and insurance professional.

Then explain how operating as a sole proprietor versus corporation may affect the structure of those risks.

Do not assume that incorporation eliminates personal liability.
```

### 2. Taxation and Financial Management

Taxation is often one of the main reasons entrepreneurs consider incorporation, but it should not be viewed simply as "corporate tax is lower, therefore incorporation is always better."

A sole proprietor generally reports business income on their personal tax return. As profits increase, the owner's personal marginal tax rate can become an important consideration.

A corporation generally pays corporate income tax on its taxable income. Depending on the corporation's circumstances, certain Canadian-controlled private corporations may qualify for preferential small-business corporate tax treatment on qualifying active business income.

One potential advantage is the ability to retain some corporate earnings for future business purposes rather than withdrawing everything personally in the same year. However, money eventually taken from the corporation can create personal tax consequences.

#### Salary vs Dividends

Business owners may consider taking compensation through salary, dividends, or a combination. The appropriate approach depends on the owner's circumstances and broader tax and financial planning considerations.

**Example: A Consultant Earning $120,000 in Net Business Income**Sarah operates a successful consulting business and generates approximately $120,000 in annual net business income. She does not need to spend all of the business's earnings personally and wants to reinvest part of the money into hiring, software, marketing, and expansion.

At this stage, it may be worthwhile for Sarah to have an accountant compare the tax and administrative consequences of continuing as a sole proprietor against incorporating.

**AI Prompt: Prepare Questions for My Accountant About Incorporation**

```
I am considering incorporating my Canadian business.

My situation:

* Province: [province]
* Business income: $[amount]
* Business expenses: $[amount]
* Net income: $[amount]
* Personal income from other sources: $[amount]
* Amount I need personally each year: $[amount]
* Amount I could leave in the business: $[amount]
* Planned reinvestment: $[amount]

Create a detailed list of questions I should ask my Canadian accountant about:

1. Sole proprietor taxation
2. Corporate taxation
3. Salary
4. Dividends
5. Retaining profits
6. Tax deferral
7. CPP/EI considerations
8. Accounting costs
9. Corporate filing costs
10. The potential point at which incorporation becomes financially worthwhile

Do not calculate final tax liability without current tax information and professional review.
```

### 3. Administrative Burden and Operating Costs

#### Sole Proprietorship

- Generally simpler to establish.

- Lower administrative burden.

- Business income is generally reported through the owner's personal tax return.

- Business records and expenses still need to be properly documented.

#### Corporation

- Higher initial setup costs may apply.

- Separate corporate tax filing is required.

- Annual corporate obligations must be maintained.

- Corporate records and governance requirements apply.

- Accounting and legal costs can be higher.

**Example: Part-Time Online Business**John sells digital products online and earns $20,000 in annual net profit. He operates alone and has limited legal and financial risk.

For John, the additional accounting and corporate compliance costs may make incorporation less attractive than it would be for a much larger business.

**AI Prompt: Compare Business Administration Costs**

```
Create a checklist of the typical costs and administrative responsibilities I should investigate before choosing between a Canadian sole proprietorship and corporation.

My business:

* Province: [province]
* Expected revenue: $[amount]
* Expected profit: $[amount]
* Number of transactions per month: [number]
* Employees: [number]
* Bookkeeping complexity: [low/medium/high]

Separate the comparison into:

* Setup
* Accounting
* Tax filing
* Annual compliance
* Legal
* Bookkeeping
* Banking
* Record keeping
* Other professional services

Do not invent exact government fees. Tell me which fees I should verify with the relevant government authority.
```

### 4. Credibility, Funding and Growth

A corporation can provide a more formal structure when working with large organizations, lenders, investors, suppliers, and potential business partners.

Investors generally invest in corporate structures because ownership can be represented through shares and formalized among multiple owners.

However, a sole proprietorship can still operate a successful and credible business. Incorporation alone does not guarantee better clients, funding, or business performance.

### 5. Business Continuity and Succession

A sole proprietorship is closely connected to its owner. If the owner dies, becomes incapacitated, or stops operating, transferring the business can involve transferring its individual assets and contracts.

A corporation has its own legal identity and can generally continue despite changes in shareholders, directors, or management.

**Example: Building a Business to Sell**Emma plans to build a company over ten years and eventually sell the business or bring in a partner.

Because ownership transfer and investment are important to her long-term plan, she should discuss whether a corporate structure would provide a more suitable framework.

## Sole Proprietorship vs Corporation: Quick Comparison Table

Feature
Sole Proprietorship
Corporation

Legal status
Owner and business are not legally separate
Separate legal entity

Personal liability
Generally higher personal exposure
Generally provides limited liability to shareholders

Tax reporting
Business income generally reported personally
Corporation generally files its own tax return

Setup
Generally simpler
More formal and potentially more expensive

Administration
Lower
Higher

Investment
Less suitable for issuing ownership interests
Shares can provide an ownership structure

Profit retention
Business income is generally included in owner's income
Corporation may retain after-tax earnings for business purposes

Business continuity
Closely tied to owner
Separate legal entity can provide greater continuity

Professional costs
Generally lower
Generally higher

## When Should You Consider Incorporating in Canada?

There is no universal income threshold at which every Canadian business should incorporate. Instead, several factors should be considered together.

### Consider Incorporation When:

- Your business has significant liability exposure.

- You expect substantial and consistent profits.

- You can leave some profits inside the business for reinvestment.

- You plan to hire employees.

- You want to bring in business partners.

- You want outside investors.

- You expect significant business growth.

- You want to build a business that could eventually be sold.

- Your customers or contracts require a corporate structure.

### A Sole Proprietorship May Make Sense When:

- You are testing a new business idea.

- Your business is small and relatively low risk.

- Your profits are modest.

- You need most of the business income personally.

- You want minimal administration.

- You operate as a freelancer or independent professional.

## Practical Business Scenarios

### Example 1: Freelance Graphic Designer

Maria works from home and earns less than $50,000 per year. She has a small number of clients, minimal expenses, and no employees.

**Potential fit:** Sole proprietorship.

The simplicity and lower administration may be valuable while she establishes her business.

### Example 2: Growing Technology Startup

David and his team are developing software and plan to hire employees, seek investment, license intellectual property, and expand internationally.

**Potential fit:** Corporation.

The corporate structure may be more appropriate to evaluate because of the planned investment, multiple owners, liability considerations, and growth strategy.

### Example 3: Successful Consulting Firm

Sarah operates a consulting business generating approximately $120,000 in annual net income. She plans to hire an employee and pursue larger contracts.

**Potential fit:** Consider incorporation.

Her increasing income, expanding operations, and greater contractual exposure make a professional review of incorporation worthwhile.

### Example 4: Online Ecommerce Business

Alex operates an ecommerce store. Sales have grown quickly, inventory has increased substantially, and the business now works with multiple suppliers and shipping partners.

**Potential fit:** Evaluate incorporation and liability protection.

Alex should also discuss product liability insurance, contracts, taxes, and consumer obligations with appropriate professionals.

### Example 5: High-Risk Contractor

Michael works in a trade where accidents, property damage, contractual disputes, and expensive equipment are possible.

**Potential fit:** Consider incorporation and insurance together.

Incorporation should not be viewed as a replacement for appropriate commercial insurance or proper contracts.

### Example 6: Part-Time Side Business

Lisa works full-time and earns $15,000 in net profit from a small side business. She has no employees, little debt, and limited business risk.

**Potential fit:** Sole proprietorship may be worth considering initially.

However, Lisa should reassess the structure if the business grows significantly or her risk profile changes.

## How to Decide Between Incorporation and Sole Proprietorship

### Step 1: Assess Your Risk

Ask yourself what could go wrong. Could a customer sue the business? Could you accumulate significant debt? Could your business activities cause property damage or financial loss?

### Step 2: Estimate Your Profit

Revenue alone is not enough. Calculate expected net business income after legitimate business expenses.

### Step 3: Determine How Much Money You Need Personally

If you need to withdraw nearly all business profits for personal living expenses, the potential benefit of retaining profits inside a corporation may be different from a business owner who can leave substantial earnings in the company.

### Step 4: Consider Your Growth Plans

Think beyond the next twelve months. Are you planning to hire, raise investment, add shareholders, enter new markets, or sell the business?

### Step 5: Calculate the Administrative Cost

Compare the expected professional and compliance costs of incorporation against the potential benefits for your specific business.

### Step 6: Speak With Professionals

Ask a qualified Canadian accountant and business lawyer to review the circumstances before making the final decision.

**AI Prompt: Build My Incorporation Decision Checklist**

```
Create a personalized decision framework for choosing between a sole proprietorship and corporation in Canada.

Ask me 15 important questions covering:

* Revenue
* Profit
* Personal income
* Business risk
* Debt
* Employees
* Partners
* Investment
* Growth
* Profit retention
* Business assets
* Contracts
* Insurance
* Long-term exit plans
* Province

After I answer, organize the information into:

1. Reasons to remain a sole proprietor
2. Reasons to consider incorporation
3. Questions for my accountant
4. Questions for my lawyer
5. Questions about insurance
6. Events that should trigger a future structure review

Do not make the final decision for me or provide professional legal/tax advice.
```

## Can You Start as a Sole Proprietor and Incorporate Later?

Yes. Many entrepreneurs begin as sole proprietors and later incorporate when their business becomes larger, more profitable, or more complex.

The transition can involve transferring business assets, contracts, intellectual property, accounts, and other interests into the corporation. Depending on the circumstances, specific tax rules may apply, including potential rollover provisions.

Because the tax consequences can be significant, the process should be planned with a qualified Canadian tax professional rather than treated as a simple registration change.

**Example: Starting Small and Incorporating Later**Tom starts a web-development business as a sole proprietor. During the first year, he earns $35,000 in net income. Three years later, the business generates $180,000 in net income, employs two people, and serves larger corporate customers.

Instead of assuming that his original structure should remain unchanged, Tom should review his situation with an accountant and lawyer and determine whether incorporation now makes sense.

**AI Prompt: Prepare for a Sole Proprietor-to-Corporation Transition**

```
I currently operate a Canadian business as a sole proprietor and am considering incorporation.

Current information:

* Province: [province]
* Business assets: $[amount]
* Annual revenue: $[amount]
* Net income: $[amount]
* Employees: [number]
* Business contracts: [describe]
* Equipment: [describe]
* Intellectual property: [describe]
* Business bank account: [describe]
* Business debt: $[amount]
* Expected growth: [describe]

Create a transition checklist showing what I should discuss with my accountant and lawyer before incorporating.

Include:

* Asset transfers
* Contracts
* Intellectual property
* Business name
* Banking
* Insurance
* Tax considerations
* Employees
* Customer accounts
* Government registrations
* Accounting records

Do not assume the transition is tax-free.
```

## Federal vs Provincial Incorporation in Canada

Canadian businesses may have different incorporation options depending on their location and objectives. Federal incorporation and provincial or territorial incorporation have different legal and registration considerations.

The choice should be based on factors such as where you operate, where you intend to expand, corporate naming considerations, registration requirements, and your long-term business plans.

**AI Prompt: Compare Federal and Provincial Incorporation**

```
I am considering incorporating my business in Canada.

Business province/territory: [province]
Current operating locations: [locations]
Planned expansion locations: [locations]
Business name: [name]
Number of owners: [number]
Expected employees: [number]

Create a checklist comparing the factors I should investigate for federal versus provincial/territorial incorporation.

Cover:

* Name protection
* Registration
* Extra-provincial requirements
* Compliance
* Cost categories
* Expansion
* Corporate records
* Ongoing obligations

Do not state exact current government fees unless they are verified from official government sources.
```

## Common Mistakes When Choosing a Business Structure

### 1. Choosing Sole Proprietorship Only Because It Is Cheap

Low startup cost is useful, but it should not be the only consideration. A growing business may eventually need stronger legal, financial, and organizational structures.

### 2. Incorporating Only Because You Heard It Saves Taxes

Incorporation does not automatically result in lower overall taxes for every business owner. Personal withdrawals, corporate tax, professional fees, payroll considerations, and other factors need to be considered together.

### 3. Ignoring Personal Liability

Business owners sometimes focus heavily on taxes while overlooking lawsuits, contracts, debts, guarantees, employees, customers, and operational risks.

### 4. Waiting Too Long to Review the Structure

Your business structure should evolve as your business changes. A structure that made sense when your business earned $30,000 may not be ideal when it earns $200,000 and employs several people.

### 5. Assuming Incorporation Eliminates All Personal Risk

A corporation can provide important liability protection, but it is not an absolute personal liability shield. Guarantees, director obligations, misconduct, statutory liabilities, and other circumstances can create personal exposure.

### 6. Failing to Consider Professional Costs

Corporate accounting, legal support, annual filings, bookkeeping, and compliance can cost more than operating a simple sole proprietorship.

**AI Prompt: Find the Weaknesses in My Business Structure Decision**

```
I am deciding between operating as a sole proprietor and incorporating my Canadian business.

My current plan:
[describe your business and decision]

Act as a critical reviewer.

Identify:

* Assumptions I may be making
* Financial factors I may have overlooked
* Liability risks I may have overlooked
* Administrative costs I may have overlooked
* Tax questions I need answered
* Future growth considerations
* Questions I should ask an accountant
* Questions I should ask a lawyer

Do not simply recommend incorporation. Challenge both options objectively.
```

## Frequently Asked Questions About Canada Incorporation vs Sole Proprietorship

### Can I switch from a sole proprietorship to a corporation?

Yes. A business can start as a sole proprietorship and later incorporate. The transition should be planned carefully because transferring assets, contracts, intellectual property, and other business interests can have tax and legal consequences.

### Is a sole proprietorship cheaper than a corporation?

Generally, a sole proprietorship has lower setup and ongoing administrative costs. A corporation usually involves additional filing, accounting, record-keeping, and governance requirements.

### Is incorporation always better for a high-income business?

No. Higher income can make incorporation worth investigating, particularly when the owner can retain profits in the corporation, but the answer depends on the owner's personal circumstances, province, business activity, expenses, tax situation, and administrative costs.

### Does incorporation protect my personal assets?

A corporation generally provides shareholders with limited liability, but personal liability can still arise in certain circumstances. Personal guarantees, director responsibilities, statutory obligations, and other exceptions should be discussed with a lawyer.

### Should a freelancer incorporate in Canada?

Not necessarily. A freelancer with modest income, low risk, and simple operations may prefer a sole proprietorship. A freelancer with substantial profits, significant contracts, employees, liability exposure, or plans for expansion may benefit from evaluating incorporation.

### What income should trigger incorporation?

There is no single income number that automatically means you should incorporate. Profit level, personal income, province, ability to retain earnings, business risk, administrative costs, and future plans all matter.

### Can I take money from my corporation for personal expenses?

Corporate money is not automatically personal money. Withdrawals need to be handled correctly and can have tax and accounting consequences. Business owners should work with their accountant to determine appropriate methods of compensation and withdrawals.

### Do I need a lawyer to incorporate in Canada?

It may be possible to incorporate without a lawyer, depending on the jurisdiction and circumstances. However, professional legal advice can be valuable when dealing with multiple shareholders, complex ownership, intellectual property, contracts, significant assets, or other legal considerations.

### What is the small business deduction?

The small business deduction is a Canadian tax provision that can provide qualifying corporations with a lower corporate tax rate on eligible active business income, subject to applicable rules and limitations. The exact tax treatment should be confirmed using current official guidance or with a Canadian tax professional.

### Should I incorporate federally or provincially?

It depends on your business's operating locations, name considerations, expansion plans, and other circumstances. Compare the applicable federal and provincial or territorial requirements before deciding.

**AI Prompt: Generate Questions for a Canadian Accountant**

```
I am meeting a Canadian accountant to discuss whether I should incorporate.

My business details:
[insert details]

Create a concise but comprehensive meeting agenda covering:

1. Sole proprietor tax position
2. Corporate tax position
3. Salary vs dividends
4. Retained earnings
5. Corporate accounting costs
6. Payroll
7. GST/HST considerations
8. CPP/EI considerations
9. Incorporation timing
10. Transition from sole proprietorship
11. Tax consequences of transferring assets
12. Record keeping
13. Future sale of the business

Separate questions that require current tax calculations from general planning questions.
```

## Final Decision Checklist: Incorporation or Sole Proprietorship?

Before making your decision, work through this checklist:

- What is my expected annual revenue?

- What is my expected net profit?

- How much of the profit do I need personally?

- How much could I retain for business growth?

- How risky is my business?

- Could customers or suppliers bring significant claims?

- Do I need employees?

- Will I have business partners?

- Do I need outside investment?

- Will I work with large corporate customers?

- Do I plan to sell the business eventually?

- What will incorporation cost annually?

- What additional accounting and legal work will be required?

- Should I incorporate now or reconsider after reaching a particular business milestone?

## Canada Incorporation vs Sole Proprietorship: The Bottom Line

The decision between **Canada incorporation vs sole proprietorship** should be based on the complete picture of your business rather than one factor such as tax rates or incorporation fees.

A sole proprietorship can be an excellent starting structure for a small, low-risk business that values simplicity and has modest profits. Incorporation can become increasingly attractive when a business has greater liability exposure, significant profits, multiple owners, employees, outside investment, or substantial plans for growth.

The most important point is that **there is no universal income threshold or business rule that makes incorporation correct for everyone**.

If you are unsure, prepare your revenue and profit projections, identify your business risks, estimate your administrative costs, and discuss the situation with a qualified Canadian accountant and business lawyer.

Your business structure should support where your business is going—not simply where it is today.

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