This is your Legal Memo for the top 3 reasons why you should consider incorporating your business today.
1. Limited liability. It means the people who create the company, the people behind the company, like the shareholders or the directors are not liable (are not responsible) if ever the company goes bankrupt, closes or anything nuclear happens behind the scenes. This means that you can protect your personal assets, your little duplex, your little triplex, your investment funds. If you personally guarantee anything on the corporation, be careful because that can engage your liability.
2. Payout options. When you are incorporated, you have the ability to pay yourself as a salary, as a dividend, as a shareholder loan or advance. This is huge and it gives you a lot more flexibility about how you get paid.
3. Tax Exemption. You get a one-time tax exemption of over $800,000 when you sell your shares in a corporation. This should be part of your considerations and is a huge factor when you’re looking at a long term exit strategy in your business.