Many people prefer to register their business as a corporation.

Advantages of incorporating are as follows:

* Incorporating a business has various advantages, the first being that the corporation has it's own identity separate from the individuals who are involved in the business. Simply because of this the corporation could be able to obtain its own investments or credit.
* Since the Corporation has its own identity it's not affected if shareholders of the corporation change or remove themselves as long as one director remains. Which is also beneficial for estate planning as the corporation continues to exist after the shareholders die
* The shareholders of the corporation are not liable for default, obligation or liability that the corporation has incurred unless the shareholders give personal guarantees.
* There might be tax benefits to incorporation. A corporation in most instances has lower tax levels than any individual tax bracket.
* The name that you select for your corporation becomes protected upon completion of the Articles of Incorporation. If someone after you've incorporated decides to use the same name the name will likely be refused.
* Now with an Ontario Incorporation only 25% of the directors are required to be Canadian Citizens.

Disadvantages to company incorporation are as follows:

* Since a corporation has its own identity, it also has to file its own tax returns. The individual shareholder should file their personal tax return along with a secondary tax return for the corporation.
* Having a corporation means much more paperwork in most cases. Not only are you required to maintain personal records for yourself as a shareholder, but also maintain the records for the corporation.
* The initial costs for a corporation is higher than other choices accessible for companies which is approximately $600.00.