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Are there reasons not to incorporate?

 

Reasons Not to Incorporate

Although it may be sensible to incorporate when considering issues of liability it may not be advantageous if your business is not yet operating at a break even point.

A loss earned in a corporation cannot be transferred to its shareholders. On the other hand, owners of a sole-proprietorship or partnership may be able to deduct losses incurred against other sources of income or against future earnings for purposes of taxation.

In addition, tax preparation is more expensive for corporations when compared to sol-proprietorships or partnerships.

 

 


CorpCanada Services Inc., 2-200 Colonnade Road South, Ottawa, Ontario K2E 7M1