The Legal and Financial Benefits of Incorporating Your Business in Edmonton August 29th, 2024 • 3 min read If you’re thinking about starting a business in Edmonton or already owning one and considering incorporation, it’s important to consider the financial benefits of incorporating. At Registrations Are Us, we have an in-depth knowledge of the ins and outs of business registration. In this post, we’ll provide you with the most significant advantages that you’ll experience when you incorporate your business in Edmonton. What Does it Mean to Incorporate? Incorporating your business means establishing it as a separate legal entity from yourself. This distinction offers several key advantages: 1. Limited Liability This is a big one. As a sole proprietor, your personal assets are at risk if your business incurs debt or faces lawsuits. Incorporation creates a shield between your personal finances and your business’s liabilities. This means you’ll know that your home, car, and savings are protected so you can focus on growing your business without the added worry. 2. Tax Advantages You’ll be able to enjoy several tax advantages after you incorporate your business in Edmonton. These include: Lower tax rates: Alberta boasts one of the lowest corporate tax rates in Canada, which offers significant savings when compared to being taxed at the personal rate. Small business deduction: Eligible corporations can benefit from a lower tax rate on the first $500,000 of active business income. Tax planning opportunities: Incorporation allows for strategic tax planning, such as income splitting and deferrals. 3. Enhanced Credibility With incorporation, your business immediately gains legitimacy and professionalism. This can be a key factor when closing deals with clients and gaining the trust of potential customers, employees, and partners. 4. Easier Access to Capital With incorporation, your business will be viewed by potential investors and banks as less risky and you’ll be more likely to attract better investments and earn more favourable loan terms. 5. Simplified Ownership Transfer If you choose to sell or transfer your business in the future, it can be made much easier with incorporation since the business is represented by shares instead of owned as a personal asset. Ready to Incorporate Your Business in Edmonton? Navigating the incorporation process can feel overwhelming but Registrations Are Us is here to help. Our comprehensive services are designed to guide you through each step, from choosing a business name and structure to filing the paperwork. Visit us to incorporate your business in Edmonton or contact our registry experts for more information.
