Incorporation

Are you considering incorporating your company? Ready to take your business to the next level? Incorporating your personal business offers many benefits over a sole proprietorship.

Benefits You Can Achieve With Parr Business Law

Schedule a free 15-minute consult call with our specialized lawyer to learn more about incorporation benefits.

Tax Rates

Corporate tax rates are lower than personal tax rates. The BC corporate tax rate on business income under $500,000 is 2% and income over $500,000 is taxed at a rate of 12%. The personal tax rate for income over $252,752 is 20.5%. 

From a Federal perspective, the corporate net tax rate is 15%, but Canadian controlled private corporations claiming the small business deduction are taxed 9%. Comparatively, the federal personal tax rate for income over $246,752 is 33%. With such a wide disparity in personal vs corporate tax rates, business owners can save hundreds of thousands of dollars over their lifetime by incorporating.

Liability

Once incorporated, you benefit from limited liability, meaning you have protection of personal assets from creditor claims and lawsuits. If your sole proprietorship faces litigation, your personal assets such as your house or your car are at risk. You may be ordered to liquidate assets or investments to pay damages in the event of a court battle ending against you.

Flexibility

You have more flexibility with a business sale or transition. There are also opportunities to save hundreds of thousands of dollars if you utilize the lifetime capital gains exemption. To qualify for the LCGE, your business must be a qualified small business corporation. A sole proprietorship won’t satisfy the criteria.

Incorporating with Parr Business Law

Incorporation can be complex. Parr Business Law has specialized experience to help you navigate the incorporation process with clarity and confidence. Our lawyers have expert knowledge to provide reliable and candid legal advice so you can focus on growing your business. Our lawyers will help you gather all information needed to incorporate your business, and walk you through the steps of incorporation.

Information Needed

  1. Your Company Name

  2. Articles of Incorporation

  3. Incorporation Agreement

  4. Director Information

  5. Registered Office Address

Steps to Incorporation

  1. Choose your business structure

  2. Choose and reserve your name 

  3. Create the company’s articles

  4. Create the incorporation agreement

  5. Apply to Incorporate

Federal Incorporation offers benefits to entrepreneurs with a big vision. You get enhanced global recognition and limited name protection to conduct business anywhere in Canada. Our lawyers have specialized knowledge to help you navigate the incorporation process with confidence and clarity. Click here to learn more about federal incorporation or to schedule and meet and greet with us today.

Your start-up needs to be secure from day one. Incorporating protects you from unnecessary risk and gives you a strong foundation to develop and expand your business. At Parr Business Law we are entrepreneurs at heart. We have the expert knowledge to provide you with peace of mind moving forward, so you can focus on growing your business. Click here to learn more about start-up incorporation or to schedule a meet and greet with us today.

Holding Companies provide an extra layer of liability protection, opportunity for the owner to invest corporate dollars instead of personally taxed dollars and access to the lifetime capital gains exemption. They also allow you to dividend out excess cash from your operating company on a tax free basis. Holding companies can get complex. We recommend discussing your business goals with a qualified professional first, to determine if a holding company is right for you. Click here to learn more and to schedule a free consultation call with Parr Business Law today.

Unlike federal incorporation, there are no residency requirements to incorporate in British Columbia. With provincial incorporation, you give your business easier access to capital and funding, the ability to save money with tax strategies and strengthened name recognition. If you’re ready to incorporate your business in BC, Parr Business Law can help. Click here to learn more about provincial incorporation or to schedule a free consultation call.

Incorporation
By Profession

Incorporation for professionals can ensure their business and career stays healthy and profitable. Whether you are a Chiropractor or an Engineer, incorporation offers a wealth of benefits. The tax savings makes it easier to reach your long term financial goals such as paying off student loans or buying a house. The professional image creates trust and credibility and with clients and partners. Protection from personal liability gives you peace of mind and allows you to focus on the important parts of growing your business. 

When it’s time to incorporate, Parr Business Law has specialized knowledge to help you navigate the incorporation process with clarity and confidence. To learn more about incorporation by profession, follow our links down below.

Don’t see your profession? Click here to schedule a free consultation call to discuss your incorporation needs.