Our Business Law team is experienced ranging from individuals and small businesses to large multi-jurisdictional corporations. Our lawyers’ knowledge of the realities of operating a business allow us to provide our clients with practical and cost-effective solutions to the ongoing challenges of operating a successful business in today’s competitive and rapidly changing commercial environment.
A common question our team is often asked is "Should I incorporate my business?" Partner Clay Williams who has tremendous experience in business law talks about the pros and cons of incorporating a business.
You as a business owner may wonder whether it's still worthwhile to incorporate. You as a business owner may have been reading in the newspapers, Castanet or any social media channels of how the Liberal government has been reducing the tax advantages to have a corporation, but there are still reasons to incorporate that are separate and apart from the tax reasons. A big one is limited liability; a corporation is a separate and distinct legal entity in law and has the power to enter into contracts itself, it has the power to do civil wrong, it has power to be negligent. Therefore if you are operating as a corporation, it’s the corporation that will be sued if you inadvertently breach a contract or if the corporation does something that would cause civil wrong. It also avoids individual responsibility so you can protect your individual assets.
There are other reasons to continue to incorporate including the corporation may make it easier for you to raise capital by selling shares. A corporation is immortal, so if you were to die it continues on and doesn't necessarily pass away and that can be an important consideration for your loved ones. It may allow or make it easier for you to bring in equity partners or for those equity partners to leave as well. So even though you may have read that the tax advantages for owning a partnership or forming a partnership have been diminished there are still good reasons to have one.
For any questions please give us a call, I’m Clay Williams at FH&P Lawyers and we have a business department ready to assist with your calls. 250-762-4222
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