July 2025 - Legal Update - Benefits of Incorporating Your Business

July 15th 2025

Thinking of taking your business to the next level? Incorporating offers a range of advantages that can set your company up for long term success.

1. Limited Liability Protection

When you incorporate, your business becomes a separate legal entity. This means your personal assets—like your home and savings—are protected from business debts and liabilities. If the company faces financial trouble, your personal risk is limited only to your investment in the business and loans you have personally guaranteed.

2. Tax Advantages

Your corporations can benefit from the small business tax deduction, allowing you to retain more after-tax income for reinvestment. This means incorporated businesses have more cash available to fund growth, operations, or new opportunities.

3. Enhanced Credibility and Professionalism

Adding “Inc.” or “Corp.” to your business immediately boosts your credibility with clients, referral partners, and future investors. It signals that you’re serious, established, and committed to long term growth. Your website is enhanced when your home page shows legal ownership!

4. Business Continuity

A corporation has an unlimited lifespan. Once incorporated, a business can continue even if ownership changes or a shareholder passes away, ensuring stability and ongoing operations for you and your family.

5. Attracting Employees

Being a corporation can make it easier to recruit top talent. Employment contracts between your business and employees can limit your exposure in the event an employment relationship goes south. There are also government supports for Ontario businesses, including loans and grants, that are only available to corporations!

Incorporating is a strategic move that protects your interests, optimizes your investment options, and positions your business for long term growth and success. If you are considering incorporation, do not hesitate to reach out to Liddiard Law today!

Michael Liddiard, BA MA JD
(905) 932-5437
michael@liddiardlaw.ca
Liddiard Law Professional Corporation