What is incorporation?

You are starting a business or it is growing? Now’s the time to start thinking about incorporation! This legal status for the business creates a legal entity that stands apart from your own. With its own assets, rights, and responsibilities. You thus separate the rights and responsibilities of your business from your personal ones. Only a few of the obligations of the company are to be personally assumed by the administrators of the legal entity. Save for these few obligations, the assets, debts, and other commitments of your business are assigned to the incorporated entity which separates them from those in your name.

Furthermore, the incorporation provides flexibility in the distribution of company earnings. It also allows to pay out dividends in the form of shares, salaries, bonuses, etc. All in all, an incorporation offers great flexibility to manage your business while providing you better protection!

What is the difference between incorporating and registering your business?
When you register your business without incorporating it, your business may carry a different name than yours, but you remain fully responsible for all its undertakings and obligations. Incorporation creates a legal entity, and outside of a few obligations that the law assigns to company administrators, you are not personally liable.

An incorporation, the intelligent choice with many advantages

An incorporation provides many tax-related and legal advantages. You benefit from a lower tax rate. You may also make strategic transactions and save a good amount of money. Furthermore, by creating a distinct entity, incorporation better protects your family assets from unforeseen events.

Notably, incorporation offers the following advantages:

Lower tax rates at the federal and provincial levels;
Creation of a distinct asset base for the company;
Greater protection of your personal assets;
Less personal risks in the event of legal action or indebtedness;
Some capital gain tax exemptions following the sale of shares;
Opportunity to invest surplus income without impacting your taxes (you will pay the tax only once you cash in personally);
Opportunity to split your income to pay fewer taxes overall;
More recovery options in case of financial difficulties.

Bessette notaires: go for an incorporation on a strong core

To select the right type of company that fits your needs and makes your incorporation a success, trust our experts in corporate law! From the start, our notaries will help you analyse your overall situation and single out the right option. They will take the time to answer all your questions and will assist you to complete the procedures of the Registry of companies.

In short, our notaries are there to support you and ensure your peace of mind at each step of the evolution of your business. Don’t hesitate to entrust your incorporation to our experienced team!


During the covid-19 health crisis, bessette notaires can meet with you at a distance.


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