403-225-2600

Advantages of Incorporation

Starting a business as a sole proprietorship or partnership is simple and affordable. However, there are advantages of incorporation you may be interested in:

  • Limited liability
  • Tax savings

Even though there is a higher initial cost to incorporate and more administration, the advantages of incorporation are worth the extra expense and time investment.

Limited Liability

A corporation is a distinct legal entity. That is, legally it is viewed as though it is a separate person. This means that the liability of the shareholders is limited to their investment. The corporation, not the shareholders, owns the assets and is responsible for the liabilities.

The shareholders are, with a few exceptions, immune from legal claims against their personal assets.

Tax Advantages of Incorporation

Perhaps the best benefit of incorporating is the ability to plan tax strategies.

In a sole proprietorship or partnership, all profits are treated as personal income. In a corporation, profits can be allocated to the corporation and to shareholders, allowing you to develop a solid strategy for tax deferral and tax minimization.

Profits can be left in the corporation to defer tax to later years, or paid to the shareholders by salary and/or dividends.

It’s Easier Than You Think

Incorporating your business can be both quick and affordable. We are happy to discuss the process with you and help you determine the tax advantages of incorporation and whether incorporation is right for you. If you are thinking of incorporating your Calgary, Alberta or BC business, call us today for your no-obligation consultation.

Words cannot express how grateful and thankful our family is for the attention and many hours of detailed work that was completed over the past year by J. E. Fletcher Professional Corporation to handle the execution of probate of our parents estate.
 
We are very happy our parents selected John Fletcher to fulfill all the legal requirements to get closure on this part of the estate settlements. Our family is in total agreement that our parents would have been very glad to know their wishes were looked after exactly as they requested and with no difficulties for any of us. It made our lives much easier.
 
Again thank you — we want you to know we appreciated all the support we received from you, John. We would definitely recommend J. E. Fletcher Professional Corporation to others who may require legal assistance and/or representation.

- The Basil and Bettie Bell Family