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.

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