The short answer is it depends. For most businesses, the question is not if, but when, to incorporate.
There are many pros and cons of incorporating a small business, it really depends on the individual situation. A common mistake businesses make is not revisiting this question on a regular basis especially as the business grows and becomes more successful.
As your business matures, and the realities of your legal and tax situations change, asking the question again may bring a different answer.
The pros and cons of incorporating a small business can vary, but here are the most common:
A business that has little legal risk and may anticipate losses early on can likely start as a sole proprietorship but increasing risk and more significant earnings will favour incorporating later.
When deciding whether to incorporate it is best to seek the professional advice from your Financial Planner, lawyer or accountant.
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