It’s a term that most business owners and professionals are familiar with. Almost everyone knows of someone who has incorporated, is thinking about it, has been told to do it, or wants nothing to do with it.
Over the years, I’ve heard so many comments and opinions on incorporation:
- I’m not sure why I’m doing this – it’s something my accountant told me to do.
- It’s too complicated and expensive.
- My friend told me she uses her company to write off her car, trips, house, etc.
- It’s great. I bought my cottage with the company.
- It’s a scam. In the end, you’ll get audited and be worse off.
- I’m still paying a lot of tax. I don’t think it’s worth it.
- Do I have to use a broker to buy and sell shares in my company?
I could go on and on….
There is a lot of confusion over incorporation, and it invites many questions:
- What is incorporation?
- Should I incorporate? Why or why not?
- When should I incorporate?
- How can I incorporate?
- I’ve got my company – now what?
I’ll be writing on these and many other topics related to incorporation over the next several weeks. Please feel free to comment and ask questions on the posts.
My focus will be on professional corporations in British Columbia, but most of the content will apply to other private incorporated businesses as well. Each province and territory has its own regulations and tax rates, so some of the situations I describe may not be relevant to your situation if you work outside of BC.