We are pleased to announce the merger of Weeks Law and John E. Fletcher Professional Corporation as MERGEN LAW LLP.

We invite you to visit our new website to learn more about our team and services. Our contact information has changed; we ask that you update your records.

Corporate / Estate Litigation / Wills, Estates & Probate / Real Estate

Close

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.

We really appreciated your patient, supportive approach. Dealing with lawyers can be intimidating for people not experienced in legal matters; you put us at ease immediately. We will always be grateful for your help in successfully getting us through what was a stressful, complicated time in our lives. We found that you and your office staff displayed professionalism and expertise during the entire process of selling our Calgary home and buying our Gibsons property.

- Joe & Mary Davis