Below are some of the differences between sole proprietorships and corporations. You can also take a quick quiz to help you decide what's best for you.
If you start as a sole proprietor, it is possible to incorporate at a later date under the same name.
Sole Proprietorship
You make all the decisions
All the profits are yours
Simple tax structure and benefits
Personal tax credits
Business lifespan is the same as the owners
You are responsible for all business debts
You are responsible for protecting your business name
Incorporation
The responsibilities of the owners are separate from the business, so owners aren't personally responsible for business debts
Decisions are made by the corporation's directors (you and any others named as directors)
Business has an unlimited life span
Limited business name protection
Easier to grow your company and raise money
Potential to qualify for certain small business tax deductions and other tax benefits (get more information from your accountant)
Note that we cannot provide legal advice on the best structure for you - you may wish to speak to a lawyer or accountant to help you decide.