Читать книгу Start & Run a Graphic Design Business - Michael Huggins - Страница 52

The advantage of incorporating in Canada is that your company will have limited liability, which means you are protected personally from lawsuits and creditors. If the corporation goes bankrupt, your personal property and

finances should be safe unless you have provided personal guarantees for the corporation’s debts. If the corporation goes bankrupt, you will not lose more than your investment. Creditors cannot sue you or your fellow shareholders for debts incurred by the corporation.

The disadvantage to incorporation is the higher costs for the business start-up. With a corporation you will need to deal with the shareholders, board of directors, and officers. There are also more documents that need to be filed such as Articles of Incorporation, an Annual Return, notices of changes in the board of directors, and change of the address of the registered office. The corporation must also maintain certain corporate records, file corporate income tax returns, and register in any province or territory in which it carries on business.