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Benefits of Incorporating

Business Corporation vs
Sole Proprietorship

Understand the pros and cons of each business structure —
incorporating your business may give you better protection and long-term benefits.
Incorporate now
Incorporate now
Get Started Now
Get Started Now

Business Corporations

Sole Proprietorships

Sole
Proprietorships

Liability Protection
Offers limited liability . The corporation exists independently of its owner(s). Your personal assets are generally protected.
Liability Protection
No liability protection. The business and the owner are legally the same. You are personally responsible for business debts and claims.
Tax Treatment
Potential for lower tax rates and tax planning strategies. The corporation files its own T2 corporate tax return.
Tax Treatment
Potential for higher personal taxes. Business income is reported as personal income on your T1 tax return.
Perceived Credibility
Seen as more credible and professional by clients, banks, investors, and larger suppliers.
Perceived Credibility
May seem less formal or established.
Raising Funds
Easier to raise funds and add partners by issuing shares and setting clear shareholder terms.
Raising Funds
Harder to raise investment or add partners. No shares to issue.
Setup Complexity
Requires filing Articles of Incorporation and creating corporate records.
SkyLaunch will handle these for you!
Setup Complexity
Fewer legal requirements. Register your business with the Ontario government.
Ongoing Compliance Requirements
Annual filing and corporate record keeping obligations.
SkyLaunch will handle these for you!
Fewer Legal Requirements
No annual corporate filings. Renew your business name registration every 5 years.
Business Corporations
Liability Protection
Offers limited liability . The corporation exists independently of its owner(s). Your personal assets are generally protected.
Tax Treatment
Potential for lower tax rates and tax planning strategies. The corporation files its own T2 corporate tax return.
Perceived Credibility
Seen as more credible and professional by clients, banks, investors, and larger suppliers.
Raising Funds
Easier to raise funds and add partners by issuing shares and setting clear shareholder terms.
Setup Complexity
Requires filing Articles of Incorporation and creating corporate records.
SkyLaunch will handle these for you!
Ongoing Compliance Requirements
Annual filing and corporate record keeping obligations.
SkyLaunch will handle these for you!
Sole Proprietorships
Sole
Proprietorships
Liability Protection
No liability protection. The business and the owner are legally the same. You are personally responsible for business debts and claims.
Tax Treatment
Potential for higher personal taxes. Business income is reported as personal income on your T1 tax return.
Perceived Credibility
May seem less formal or established.
Raising Funds
Harder to raise investment or add partners. No shares to issue.
Setup Complexity
Fewer legal requirements. Register your business with the Ontario government.
Fewer Legal Requirements
No annual corporate filings. Renew your business name registration every 5 years.

Incorporate for better protection, credibility, and long-term growth.

Get Started Now
Get Started Now

Need help deciding?

Read insights from SkyLaw lawyers on this topic in our blog

Read The Incorporation Blog
Read The Incorporation Blog

Need help deciding?

Read insights from SkyLaw lawyers on this topic in our blog!

Read The Incorporation Blog
Read The Incorporation Blog
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