Are you an entrepreneur with a great business idea, but unsure of the best way to conduct your business? You are not alone! Many entrepreneurs face challenges when it comes to setting up their business. In this blog, I will explain why incorporation is the preferred route to take and how it can help alleviate some of the challenges you may be facing.

(1) Saves time: Incorporating your business can save you a lot of time. As a sole proprietor, you would be responsible for handling all the legal and financial aspects of your business. This can be very time-consuming, and as an entrepreneur, you need to focus on your business operations. By incorporating your business, you can decide to delegate some of these responsibilities to a board of directors, freeing up your time to focus on what you do best. It might take time until you get there, but the framework for that will be in place

(2) Provides organization: Incorporating your business can also help provide organization to your company. As a sole proprietor, your business assets and personal assets are not separate. This means that if something goes wrong in your business, your personal assets could be at risk. By incorporating, you are creating a separate legal entity for your business, which helps protect your personal assets from any potential liabilities. This is by far the best-selling item of incorporation and the reason why it is the most recommended way of conducting business

(3) Credibility and Trust: Incorporating your business can help add credibility to your company. It shows that you are committed to your business and have taken the necessary steps to protect it. Additionally, potential investors and customers are more likely to trust a company that is incorporated, which can lead to increased business opportunities.

(4) Tax Benefits: Incorporating your business can provide tax benefits. As a sole proprietor, you are responsible for paying both personal and business taxes. However, as a corporation, you may be eligible for tax deductions that can help reduce your tax liability. Like a good lawyer, a good accountant is a valuable part of the winning team you need to build in order properly structure your business and make the necessary decisions to see it grow.

(5) Potential for Growth: Incorporating your business can also help position your company for future growth. As a corporation, you have the ability to issue stocks and raise capital from investors. This can help fund future business ventures and expand your company.

Setting up a business can be overwhelming and stressful, but incorporating your business can provide peace of mind. By working with a lawyer that cares about small and midsize businesses, you can ensure that all legal obligations are met and mistakes are avoided. If you would like more information on how incorporation can benefit your business, please complete our contact form or email us at info@nungisalaw.ca. We would be happy to assist you!