Should I just incorporate myself (instead of SP?)

[m4gician]

I'm a sole proprietor right now of a company with 1 employee, myself.

My business is automotive detailing, a business that is heavily service based, and from what a lot of people doing this business across the border are saying, incorporation is making a lot more sense just for the limited liability aspect of it.

Of course I'd have to issue myself shares, pay corporate income tax, etc.

But for those who have and are considering, you've probably done a cost-benefit analysis, and if you're in a similar business scenario what's the best option right now?

If I don't go the way of a corporation, I may just seek insurance for myself and the business (which I'm in the process of doing).

[Hellfire]

Yes Incorporate.

[grant]

Don't bother, you'll spend $500 - $2000 on incorporation fees, and then you have an annual accounting bill of $500-$1500.

And for what, to limit your liability?? What kind of liability does an auto-detailler risk anyways? It's not like you're taking on penalty-laden contracts, or ordering huge inventory on credit...

As the president, treasurer, secretary, and sole director of your little corporation, the corporate seal won't protect you from liabilities arising from fraud or gross negligence. You CAN still be sued personally.

Your money is better spent on insurance if that's your worry.

[KingdomCome]

If you have the money, incorporate. That is all.

[michelb]

As mentioned, for a small company like that, incorporating will not shield you from liability so that's a non-issue. You should speak with an accountant but if you make more than $65k/year, it's probably beneficial to incorporate.

[Justin C]

BTW - it only costs about $230 to incorporate (federally) if you file the paperwork yourself online. I'm not sure if it really offers me any benefits, but for the price it was an easy decision: http://strategis.ic.gc.ca/cgi-bin/sc_mrksv/corpdir/corpFiling/register.cgi?lang=e

[j0dan]

For me it wasn't worth the extra costs with my current income of about 40k. When my income grows I will re-evaluate.