{"id":996,"date":"2023-10-03T03:50:27","date_gmt":"2023-10-03T03:50:27","guid":{"rendered":"https:\/\/blog.ownr.co\/?p=996"},"modified":"2026-04-05T15:04:13","modified_gmt":"2026-04-05T15:04:13","slug":"a-guide-what-to-consider-when-incorporating-your-business","status":"publish","type":"post","link":"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/","title":{"rendered":"Sole Proprietorship vs Corporation: Which Business Structure is Right for You"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Deciding between a sole proprietorship and a corporation is one of the first and most consequential choices you will make as a new business owner.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A sole proprietorship means you and your business are one and the same. It simplifies formation and maintenance, keeps startup costs low, and maintains the owner&#8217;s complete control, but you carry full personal liability.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A corporation establishes a distinct legal identity separate from you, which adds complexity and costs. But it provides personal liability protection and access to lower tax rates.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This guide compares both structures across liability, taxes, costs, and fit, so you can make a confident decision.<\/span><\/p>\n<p><iframe loading=\"lazy\" title=\"Choosing Between Sole Proprietorships vs Corporations in Canada\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/jiqkbI9Y_JA?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<h2><span style=\"font-weight: 400;\">Key Takeaways<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sole proprietorships are simple and low-cost, but the owner is personally liable for all business debts and pays personal income tax on profits.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Corporations offer limited liability and lower small-business tax rates, but they are more complex to set up and maintain due to extensive paperwork and associated costs.<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.ownr.co\/\"><span style=\"font-weight: 400;\">Ownr<\/span><\/a><span style=\"font-weight: 400;\"> simplifies the legal process and helps you register your sole proprietorship or incorporation quickly so you can focus on business growth.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Sole Proprietorship vs. Corporation Key Differences: At a Glance<\/span><\/h2>\n<div style=\"max-width: 950px; margin: 0 auto; background: #ffffff; border-radius: 8px; overflow: hidden; border: 1px solid #e5e7eb;\">\n<table style=\"width: 100%; border-collapse: collapse;\">\n<thead>\n<tr style=\"background: #6035c8;\">\n<th style=\"padding: 16px 24px; font-size: 0.95rem; color: #ffffff; text-align: left; border: 1px solid #6035c8; line-height: 1.5; width: 20%;\"><\/th>\n<th style=\"padding: 16px 24px; font-size: 0.95rem; color: #ffffff; text-align: left; border: 1px solid #6035c8; line-height: 1.5;\">Sole Proprietorship<\/th>\n<th style=\"padding: 16px 24px; font-size: 0.95rem; color: #ffffff; text-align: left; border: 1px solid #6035c8; line-height: 1.5;\">Corporation<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"background: #fdf8e8;\">\n<td style=\"padding: 12px 24px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; font-weight: bold;\">Features<\/td>\n<td style=\"padding: 12px 24px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5;\">Owner and business are the same<\/td>\n<td style=\"padding: 12px 24px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5;\">Business has its own legal entity status as a separate legal entity<\/td>\n<\/tr>\n<tr style=\"background: #f7f0d4;\">\n<td style=\"padding: 12px 24px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; font-weight: bold; vertical-align: top;\">Benefits<\/td>\n<td style=\"padding: 12px 24px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5;\">\n<ul style=\"margin: 0; padding-left: 18px;\">\n<li style=\"margin-bottom: 6px;\">Fast, affordable registration<\/li>\n<li style=\"margin-bottom: 6px;\">Full control over all decisions<\/li>\n<li style=\"margin-bottom: 6px;\">Deduct business losses from personal income<\/li>\n<li>Lower setup costs<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 12px 24px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5;\">\n<ul style=\"margin: 0; padding-left: 18px;\">\n<li style=\"margin-bottom: 6px;\">Limits personal financial exposure<\/li>\n<li style=\"margin-bottom: 6px;\">Flexible ownership structure with shareholders<\/li>\n<li style=\"margin-bottom: 6px;\">Easier capital raising ability via share issuance<\/li>\n<li style=\"margin-bottom: 6px;\">Lower corporate tax rates available<\/li>\n<li>Supports business growth and scaling<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr style=\"background: #fdf8e8;\">\n<td style=\"padding: 12px 24px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; font-weight: bold; vertical-align: top;\">Drawbacks<\/td>\n<td style=\"padding: 12px 24px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5;\">\n<ul style=\"margin: 0; padding-left: 18px;\">\n<li style=\"margin-bottom: 6px;\">Full personal liability for debts<\/li>\n<li style=\"margin-bottom: 6px;\">Higher personal income taxes<\/li>\n<li style=\"margin-bottom: 6px;\">Limited capital raising ability<\/li>\n<li>No ownership transferability<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 12px 24px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5;\">\n<ul style=\"margin: 0; padding-left: 18px;\">\n<li style=\"margin-bottom: 6px;\">Higher setup and maintenance costs<\/li>\n<li style=\"margin-bottom: 6px;\">Potential shareholder conflict<\/li>\n<li style=\"margin-bottom: 6px;\">Requires ongoing filings, governance, and corporate formalities<\/li>\n<li>High administrative complexity<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><a href=\"https:\/\/www.ownr.co\/\"><span style=\"font-weight: 400;\">Ownr<\/span><\/a><span style=\"font-weight: 400;\"> helps you register a sole proprietorship or incorporate quickly and easily. Make your new business official today.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Sole proprietorship: benefits and considerations<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Sole proprietorships are the most common form of business organization in Canada. Let\u2019s first explore what this business structure is and why so many Canadians choose to register their business as sole proprietorships.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9590 size-full\" src=\"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Comparison-Chart-1.png\" alt=\"An infographic showing the pros and cons of a sole proprietorship vs incorporation\" width=\"5968\" height=\"4352\" srcset=\"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Comparison-Chart-1.png 5968w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Comparison-Chart-1.png?resize=300,219 300w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Comparison-Chart-1.png?resize=768,560 768w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Comparison-Chart-1.png?resize=1024,747 1024w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Comparison-Chart-1.png?resize=1536,1120 1536w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Comparison-Chart-1.png?resize=2048,1493 2048w\" sizes=\"auto, (max-width: 5968px) 100vw, 5968px\" \/><\/p>\n<h3><span style=\"font-weight: 400;\">What is a sole proprietorship?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Simply put, a sole proprietorship is a business structure in which an individual owner \u00a0assumes on all the legal responsibilities, profits, and debts of the company.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Benefits of a sole proprietorship<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There are many <\/span><a href=\"https:\/\/www.ownr.co\/blog\/sole-proprietorship-advantages-disadvantages\/\"><span style=\"font-weight: 400;\">benefits of registering your business as a sole proprietorship<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">1. Simple and quick registration\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Registering as a sole proprietorship is the simplest business structure. Setup can take mere minutes if you choose to <\/span><a href=\"https:\/\/www.ownr.co\/product\/sole-proprietorship\"><span style=\"font-weight: 400;\">register your business as a sole proprietor with Ownr<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">2. Full control over decision-making<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">By registering as a sole proprietor, there\u2019s no need for <a href=\"https:\/\/www.ownr.co\/blog\/shareholders-board-members-and-officers\/\">board or shareholder<\/a> approvals. As the sole owner, you have complete control over the company\u2019s business decisions.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">3. Deduct business losses from personal income<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">You can <\/span><a href=\"https:\/\/www.ownr.co\/blog\/small-business-deductions-expenses\/\"><span style=\"font-weight: 400;\">claim business deductions<\/span><\/a><span style=\"font-weight: 400;\"> for your company&#8217;s losses to influence personal income taxes and remain in a lower tax bracket.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">4. Low startup costs<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Registering your business as a sole proprietorship has the <\/span><a href=\"https:\/\/www.ownr.co\/blog\/everything-you-need-to-know-about-startup-costs\/\"><span style=\"font-weight: 400;\">lowest associated costs<\/span><\/a><span style=\"font-weight: 400;\">. Register your business with Ownr for a one-time fee of only $49.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Not sure how the process works? Here&#8217;s everything you need to know about<\/span><a href=\"https:\/\/www.ownr.co\/blog\/sole-proprietorship-and-how-to-register\/\"> <span style=\"font-weight: 400;\">sole proprietorship registration in Canada<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Considerations and risks of a sole proprietorship<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">While sole proprietorships offer many benefits, they also entail trade-offs. Here are some of the cons of a sole proprietorship.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">1. You\u2019re fully liable<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">\u00a0If your business incurs debt, you are personally responsible. It\u2019s that simple.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">2. Higher personal taxes<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">If your business becomes super profitable, you\u2019ll personally pay higher taxes. While high profits are certainly a benefit, it\u2019s important to know you may jump to a higher tax bracket as your business\u2019s finances improve.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">3. Raising money can be difficult<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Sole proprietors can have more difficulty raising capital than incorporated businesses. Financial institutions and <a href=\"https:\/\/www.ownr.co\/blog\/how-to-find-business-investors-in-canada\/\">investors may require your business<\/a> to be incorporated before they grant you a loan or invest.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Want the full picture? Read our deep dive into the<\/span><a href=\"https:\/\/www.ownr.co\/blog\/sole-proprietorship-advantages-disadvantages\/\"> <span style=\"font-weight: 400;\">advantages and disadvantages of a sole proprietorship<\/span><\/a><span style=\"font-weight: 400;\"> before you decide.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9589 size-full\" src=\"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Money-bills-2.png\" alt=\"An image of purple money falling against a yellow background with a grid\" width=\"5944\" height=\"3692\" srcset=\"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Money-bills-2.png 5944w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Money-bills-2.png?resize=300,186 300w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Money-bills-2.png?resize=768,477 768w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Money-bills-2.png?resize=1024,636 1024w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Money-bills-2.png?resize=1536,954 1536w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Money-bills-2.png?resize=2048,1272 2048w\" sizes=\"auto, (max-width: 5944px) 100vw, 5944px\" \/><\/p>\n<h2><span style=\"font-weight: 400;\">Incorporation: benefits and considerations<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Incorporation is the third most common type of business (after sole proprietorship and\u00a0<a href=\"https:\/\/www.ownr.co\/blog\/partnership-agreement\/\">general partnership agreements<\/a>),\u00a0 with many entrepreneurs starting out with sole proprietorships before incorporating. Here are the <\/span><a href=\"https:\/\/www.ownr.co\/blog\/taking-the-leap-common-reasons-why-sole-proprietors-decide-to-incorporate-their-business\/\"><span style=\"font-weight: 400;\">most common reasons why entrepreneurs make the leap from sole proprietorship to incorporation<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What is an incorporation?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">An incorporation is a business structure in which the company operates as its own legal entity. Once you decide to incorporate your business, it\u2019s no longer simply an extension of your work and income; it becomes its own distinct legal entity separate from the owners.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Incorporation provides greater liability protection for you as a business owner than sole proprietorships or general partnerships. <\/span><a href=\"https:\/\/www.ownr.co\/blog\/4-things-you-should-know-before-incorporating-your-business\/\"><span style=\"font-weight: 400;\">Before deciding to incorporate<\/span><\/a><span style=\"font-weight: 400;\">, you\u2019ll also have to choose whether to do so <\/span><a href=\"https:\/\/www.ownr.co\/blog\/federal-vs-provincial-incorporation\/\"><span style=\"font-weight: 400;\">under provincial law or federal law<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s look at some of the <\/span><a href=\"https:\/\/www.ownr.co\/resources\/business-guides\/why-incorporate\"><span style=\"font-weight: 400;\">advantages and disadvantages of incorporating your business<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Benefits of an incorporation<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There are many <\/span><a href=\"https:\/\/www.ownr.co\/resources\/business-guides\/why-incorporate\"><span style=\"font-weight: 400;\">advantages to registering your business as a corporation<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">1. Limited liability<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">This means your exposure to any retribution as a business owner\u2014should your business not do well and incur debts or losses\u2014is limited. In most cases your personal assets cannot be seized for debts incurred by the business. Corporations are separate legal entities and owners are not personally responsible for the business\u2019s financial and legal liabilities.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">2. Ability to transfer ownership<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Once incorporated, owners can transfer ownership if they decide to sell the business.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">3. Easier to raise capital\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Incorporating a business opens the door to additional financing. You\u2019ll have more funding opportunities because you have the option to sell shares, making it easier to <\/span><a href=\"https:\/\/www.ownr.co\/blog\/how-to-secure-small-business-capital\/\"><span style=\"font-weight: 400;\">raise capital from investors and financial institutions<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">4. Legacy and estate planning<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">An incorporated business theoretically exists forever and will be treated as an asset that lives beyond the life of the owners to eventually be taken over by a beneficiary. It\u2019s important as a business owner to create an estate plan for the beneficiary of the business so affairs are in order and they are not left with heavy taxation.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">5. Lower tax rates<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">A corporation\u2019s business income will be taxed at the federal or provincial corporate tax rate. The corporate tax rates, in general, are lower than personal income tax rates. Corporations can also benefit from additional <\/span><a href=\"https:\/\/www.ownr.co\/blog\/tracking-and-claiming-tax-deductible-business-expenses-in-canada\/\"><span style=\"font-weight: 400;\">tax deductible business expenses<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9591 size-full\" src=\"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Comparison-Chart-2.png\" alt=\"An infographic showing the pros and cons of a sole proprietorship vs incorporation\" width=\"5968\" height=\"4352\" srcset=\"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Comparison-Chart-2.png 5968w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Comparison-Chart-2.png?resize=300,219 300w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Comparison-Chart-2.png?resize=768,560 768w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Comparison-Chart-2.png?resize=1024,747 1024w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Comparison-Chart-2.png?resize=1536,1120 1536w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Comparison-Chart-2.png?resize=2048,1493 2048w\" sizes=\"auto, (max-width: 5968px) 100vw, 5968px\" \/><\/p>\n<h3><span style=\"font-weight: 400;\">Considerations and risks of incorporation<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Though there are extensive benefits to incorporating, there are also risks. It\u2019s important to consider the following concerns.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">1. Stricter regulations\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Once incorporated, your business must abide by strict regulations that require accurate paperwork.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">2. More fees and higher costs\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">The startup costs of setting up a corporation are higher than those of a sole proprietorship. The cost of registering your business as a sole proprietorship is generally under $100 ($60-$80 for the registration fee, plus additional fees for your <a href=\"https:\/\/www.ownr.co\/blog\/nuans-name-search\/\">official business name search<\/a>). Incorporation <a href=\"https:\/\/www.ownr.co\/blog\/incorporation-costs\/\">costs<\/a> start at around $200 for a federal incorporation fee and can cost as much as $350 for provincial incorporation, based on the province or territory. Additional fees for the business name search will also apply.\u00a0\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">3. Potential for internal conflict with shareholders<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Including shareholders and directors in your small business opens up the potential for internal conflict and disagreements.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">4. Additional (and ongoing) paperwork filings<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">There\u2019s a lot more paperwork involved with corporations, including yearly documentation that must be filed with the government. You must maintain ongoing paperwork filings to continue to operate.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">5. Additional legal formalities<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">The formality of filing \u201carticles of incorporation\u201d may sound daunting, but it doesn\u2019t have to be as overwhelming as you might think. Read on for more information on articles of incorporation, or check out Ownr\u2019s <\/span><a href=\"https:\/\/www.ownr.co\/blog\/learn-about-articles-of-incorporation\/\"><span style=\"font-weight: 400;\">complete guide to articles of incorporation<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What are articles of incorporation?\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Articles of incorporation are legal documents that describe the structure of your business and define it as a separate legal entity. If your business is incorporated federally, the governing agency is the Government of Canada. If it is incorporated provincially, it\u2019s the respective provincial or territorial government.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These documents also ensure your business follows specific rules concerning company ownership. For instance, both federal and certain provincial corporations must meet director residency requirements, which stipulate that at least 25% of a company\u2019s directors must be Canadian citizens or permanent residents. If a company has fewer than four directors, at least one must be a Canadian citizen or permanent resident.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What do you need for articles of incorporation?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Below is the information you\u2019ll need to prepare in order to file your articles of incorporation\u2014a process that Ownr guides you through when you create an account and <\/span><a href=\"https:\/\/www.ownr.co\/product\/incorporation\"><span style=\"font-weight: 400;\">incorporate your business<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Name of your business<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Physical address of head office (can be home address)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Full names and addresses of all directors<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Citizenship status of directors<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Shareholder allocation (i.e., how you divide shares and price among your directors)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Officer roles (assign a President and Secretary)<\/span><\/li>\n<\/ul>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9594 size-full\" style=\"background-color: rgb(244 243 249\/var(--tw-bg-opacity)); color: #231e56; font-size: 1rem;\" src=\"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Checklist.png\" alt=\"A checklist showing what you need for articles of incorporation\" width=\"5968\" height=\"3564\" srcset=\"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Checklist.png 5968w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Checklist.png?resize=300,179 300w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Checklist.png?resize=768,459 768w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Checklist.png?resize=1024,612 1024w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Checklist.png?resize=1536,917 1536w, https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2022\/09\/Checklist.png?resize=2048,1223 2048w\" sizes=\"auto, (max-width: 5968px) 100vw, 5968px\" \/><\/h2>\n<h3><span style=\"font-weight: 400;\">Do I need articles of incorporation for a sole proprietorship?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you are registering your business as a sole proprietorship, you do not need articles of incorporation. Articles of incorporation are only necessary for a corporation as they are documents that define the company as a separate legal entity.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Should you choose a sole proprietorship or incorporation?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">If you\u2019re unsure which of the two you should choose, the best bet is to opt for the structure that fits your current budget and your business goals.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">When to choose a sole proprietorship<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you are experimenting with a new business idea and are not sure whether you will pursue it long term, a sole proprietorship may be your best option. As a sole proprietor, you can operate under a unique business name with a simple tax structure without incurring high startup fees or investing a lot of time and effort to set up your business.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">When to choose incorporation<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Consider incorporating if you have multiple owners or plan for rapid growth. You immediately <\/span><a href=\"https:\/\/www.ownr.co\/blog\/5-things-to-consider-when-incorporating-your-business\/\"><span style=\"font-weight: 400;\">maximize personal asset protection, optimize tax rates, and gain easier access to capital<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, incorporating early builds credibility with suppliers and lenders, which is essential if you need loans later. So, <\/span><a href=\"https:\/\/www.ownr.co\/blog\/when-is-the-best-time-to-incorporate\/\"><span style=\"font-weight: 400;\">do not wait to make this decision<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whether you choose a sole proprietorship or a corporation, Ownr makes the process simple. We handle the legal structure so you can focus on growing your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Still on the fence? Our guide on<\/span><a href=\"https:\/\/www.ownr.co\/blog\/how-to-choose-between-sole-prop-corporation\/\"> <span style=\"font-weight: 400;\">how to choose between a sole proprietorship and a corporation<\/span><\/a><span style=\"font-weight: 400;\"> walks you through the decision in more detail.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Sole Proprietorship vs Corporation Taxes in Canada<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Tax obligations are an important factor in choosing your structure, since the difference in tax rates can be significant. This section provides insight into tax implications to help you plan effectively.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Sole Proprietorship Taxes<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As a sole proprietor, the government views you and your business as the same person. You report all business income on your personal tax return (T1).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Canada uses a progressive tax system, so as your income rises, your tax rate increases.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Pros:<\/b><span style=\"font-weight: 400;\"> Simple tax filing. You can deduct business losses from other personal income.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cons:<\/b><span style=\"font-weight: 400;\"> High earners pay high taxes. In some provinces, the combined top personal tax rate can exceed 50%.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Corporation Taxes<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">A corporation is a separate legal entity. It files its own tax return (T2) and pays taxes on its own profits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The most significant advantage is the Small Business Deduction. If your company is a Canadian-Controlled Private Corporation (CCPC), you pay a much lower tax rate on the first $500,000 of active business income.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tax Deferral:<\/b><span style=\"font-weight: 400;\"> You can leave profits inside the corporation to reinvest. You only pay personal taxes when you withdraw that money as a salary or dividend.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lower Rates:<\/b><span style=\"font-weight: 400;\"> The combined corporate tax rates for small businesses are significantly lower than personal rates.<\/span><\/li>\n<\/ul>\n<div style=\"max-width: 950px; margin: 0 auto; background: #ffffff; border-radius: 8px; overflow: hidden; border: 1px solid #e5e7eb;\">\n<table style=\"width: 100%; border-collapse: collapse;\">\n<thead>\n<tr style=\"background: #6035c8;\">\n<th style=\"padding: 16px 20px; font-size: 0.9rem; color: #ffffff; text-align: left; border: 1px solid #6035c8; line-height: 1.5; white-space: nowrap;\">Province<\/th>\n<th style=\"padding: 16px 14px; font-size: 0.9rem; color: #ffffff; text-align: center; border: 1px solid #6035c8; line-height: 1.5;\">Fed Small Bus. Rate*<\/th>\n<th style=\"padding: 16px 14px; font-size: 0.9rem; color: #ffffff; text-align: center; border: 1px solid #6035c8; line-height: 1.5;\">Prov Small Bus. Rate<\/th>\n<th style=\"padding: 16px 14px; font-size: 0.9rem; color: #ffffff; text-align: center; border: 1px solid #6035c8; line-height: 1.5;\">Total Small Bus. Rate<\/th>\n<th style=\"padding: 16px 14px; font-size: 0.9rem; color: #ffffff; text-align: center; border: 1px solid #6035c8; line-height: 1.5;\">Fed Personal Rate (Top)<\/th>\n<th style=\"padding: 16px 14px; font-size: 0.9rem; color: #ffffff; text-align: center; border: 1px solid #6035c8; line-height: 1.5;\">Prov Personal Rate (Top)<\/th>\n<th style=\"padding: 16px 14px; font-size: 0.9rem; color: #ffffff; text-align: center; border: 1px solid #6035c8; line-height: 1.5;\">Total Personal Rate<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"background: #fdf8e8;\">\n<td style=\"padding: 12px 20px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; font-weight: bold; white-space: nowrap;\">Ontario<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">9.00%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">3.20%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">12.20%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">33.00%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">20.53%**<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">53.53%<\/td>\n<\/tr>\n<tr style=\"background: #f7f0d4;\">\n<td style=\"padding: 12px 20px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; font-weight: bold; white-space: nowrap;\">Quebec<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">9.00%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">3.20%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">12.20%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">27.56%***<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">25.75%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">53.31%<\/td>\n<\/tr>\n<tr style=\"background: #fdf8e8;\">\n<td style=\"padding: 12px 20px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; font-weight: bold; white-space: nowrap;\">Alberta<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">9.00%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">2.00%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">11.00%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">33.00%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">15.00%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">48.00%<\/td>\n<\/tr>\n<tr style=\"background: #f7f0d4;\">\n<td style=\"padding: 12px 20px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; font-weight: bold; white-space: nowrap;\">British Columbia<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">9.00%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">2.00%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">11.00%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">33.00%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">20.50%<\/td>\n<td style=\"padding: 12px 14px; font-size: 0.9rem; color: #1a2035; border: 1px solid #e5e7eb; line-height: 1.5; text-align: center;\">53.50%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><i><span style=\"font-weight: 400;\">*Rates apply to the first $500,000 of active business income for Canadian-Controlled Private Corporations (CCPCs).\u00a0<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">**Ontario Personal Rate includes the provincial surtax (effective rate).\u00a0<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">***Quebec Fed Rate reflects the 16.5% Quebec Abatement.<\/span><\/i><\/p>\n<h2><span style=\"font-weight: 400;\">How Ownr Helps You Register a Sole Proprietorship or Corporation<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Now that you have a clearer picture of both structures, the next step is making it official. Ownr is built to handle the legal side of business name registration and incorporation, so you can focus on running your business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For sole proprietors, you can register in minutes for just $49, with all required documents prepared and stored securely in one place. For those ready to incorporate, Ownr walks you through the articles of incorporation process step by step, covering everything from your corporate structure to shareholder allocation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ownr keeps the process simple, affordable, and organized. <\/span><a href=\"https:\/\/www.ownr.co\/\"><span style=\"font-weight: 400;\">Start your registration today<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Frequently asked questions\u00a0<\/span><\/h2>\n<h3><span style=\"font-weight: 400;\">What is the main advantage of owning a sole proprietorship over a corporation?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The main advantage of owning a sole proprietorship over a corporation is the simplicity of the business structure. It can be set up quickly and cheaply, and you don\u2019t have to worry about complicated documentation and filings.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What is the biggest disadvantage of a sole proprietorships?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The greatest drawback of sole proprietorships is the exposure to liability. Since a sole proprietorship isn\u2019t a distinct legal entity, any legal or financial liabilities incurred by the business are automatically the responsibility of the business owner.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Do corporations pay less tax than sole proprietorship?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, corporations generally pay less in taxes than sole proprietorships because they can benefit from corporate tax incentives.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Do you save money by incorporating?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s possible to save money by incorporating, since your business will be subject to lower corporate tax rates. However, the direct costs of setting up a corporation are higher than those for a sole proprietorship.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Can a sole proprietorship be incorporated?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes, if you already have a sole proprietorship you can incorporate your business.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What is the difference between a sole proprietorship and an LLC?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">LLC stands for limited liability company, an American business structure that is not available to Canadians. A corporation is the Canadian analog to an LLC. Learn more about <a href=\"https:\/\/www.ownr.co\/blog\/llc-vs-corporation\/\">LLC vs. corporation<\/a> and what it means for Canadian entrepreneurs.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Can I be a sole proprietor and have an incorporation?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You can only be a sole proprietor and the owner of a corporation if the two businesses are separate. A sole proprietorship can\u2019t be a corporation at the same time, since incorporating creates a separate legal entity.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">What\u2019s the difference between INC and LTD?<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Inc and Ltd are common suffixes in the names of Canadian corporations. Usually, there <\/span><a href=\"https:\/\/www.theglobeandmail.com\/report-on-business\/small-business\/sb-money\/inc-or-ltd-which-sounds-better\/article4258956\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">isn\u2019t an essential distinction between them<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a guide for some of the most common considerations entrepreneurs think about when taking next steps to incorporate a business.<\/p>\n","protected":false},"author":5,"featured_media":9600,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[963],"tags":[177,225,347,371,372,672],"class_list":["post-996","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-before-you-start-a-business","tag-business-registration","tag-corporation","tag-guide","tag-incorporating","tag-incorporation","tag-sole-proprietorship"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Sole Proprietorship vs Corporation: Which Business Structure is Right for You | Ownr Blog<\/title>\n<meta name=\"description\" content=\"Sole proprietorship vs corporation, which is right for your Canadian business? Compare liability, taxes, costs, and more to make the right choice with confidence.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sole Proprietorship vs Corporation: Which Business Structure is Right for You | Ownr Blog\" \/>\n<meta property=\"og:description\" content=\"Sole proprietorship vs corporation, which is right for your Canadian business? Compare liability, taxes, costs, and more to make the right choice with confidence.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/\" \/>\n<meta property=\"og:site_name\" content=\"Ownr Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/OwnrCo\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-03T03:50:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-04-05T15:04:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2019\/03\/Cover.png\" \/>\n\t<meta property=\"og:image:width\" content=\"5968\" \/>\n\t<meta property=\"og:image:height\" content=\"4352\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Ownr Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@OwnrCo\" \/>\n<meta name=\"twitter:site\" content=\"@OwnrCo\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ownr Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"12 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/a-guide-what-to-consider-when-incorporating-your-business\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/a-guide-what-to-consider-when-incorporating-your-business\\\/\"},\"author\":{\"name\":\"Ownr Team\",\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/#\\\/schema\\\/person\\\/2d3a90f4777763d5abc49866c1f4f694\"},\"headline\":\"Sole Proprietorship vs Corporation: Which Business Structure is Right for You\",\"datePublished\":\"2023-10-03T03:50:27+00:00\",\"dateModified\":\"2026-04-05T15:04:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/a-guide-what-to-consider-when-incorporating-your-business\\\/\"},\"wordCount\":2448,\"publisher\":{\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/a-guide-what-to-consider-when-incorporating-your-business\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.ownr-blog.com\\\/wp-content\\\/uploads\\\/2019\\\/03\\\/Cover.png\",\"keywords\":[\"Business Registration\",\"corporation\",\"Guide\",\"Incorporating\",\"incorporation\",\"sole proprietorship\"],\"articleSection\":[\"Before You Start a Business\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/a-guide-what-to-consider-when-incorporating-your-business\\\/\",\"url\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/a-guide-what-to-consider-when-incorporating-your-business\\\/\",\"name\":\"Sole Proprietorship vs Corporation: Which Business Structure is Right for You | Ownr Blog\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/a-guide-what-to-consider-when-incorporating-your-business\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/a-guide-what-to-consider-when-incorporating-your-business\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.ownr-blog.com\\\/wp-content\\\/uploads\\\/2019\\\/03\\\/Cover.png\",\"datePublished\":\"2023-10-03T03:50:27+00:00\",\"dateModified\":\"2026-04-05T15:04:13+00:00\",\"description\":\"Sole proprietorship vs corporation, which is right for your Canadian business? Compare liability, taxes, costs, and more to make the right choice with confidence.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/a-guide-what-to-consider-when-incorporating-your-business\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.ownr.co\\\/blog\\\/a-guide-what-to-consider-when-incorporating-your-business\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/a-guide-what-to-consider-when-incorporating-your-business\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.ownr-blog.com\\\/wp-content\\\/uploads\\\/2019\\\/03\\\/Cover.png\",\"contentUrl\":\"https:\\\/\\\/www.ownr-blog.com\\\/wp-content\\\/uploads\\\/2019\\\/03\\\/Cover.png\",\"width\":5968,\"height\":4352},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/a-guide-what-to-consider-when-incorporating-your-business\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Ownr Blog\",\"item\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Ownrship 101\",\"item\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/category\\\/ownrship-101\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Business Stages\",\"item\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/category\\\/ownrship-101\\\/business-stages\\\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"Before You Start\",\"item\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/category\\\/ownrship-101\\\/business-stages\\\/before-you-start\\\/\"},{\"@type\":\"ListItem\",\"position\":5,\"name\":\"Before You Start a Business\",\"item\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/category\\\/ownrship-101\\\/business-stages\\\/before-you-start\\\/before-you-start-a-business\\\/\"},{\"@type\":\"ListItem\",\"position\":6,\"name\":\"Sole Proprietorship vs Corporation: Which Business Structure is Right for You\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/\",\"name\":\"Ownr Blog\",\"description\":\"Helping Canadians Register &amp; Incorporate Their Business\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/#organization\",\"name\":\"Ownr Co\",\"url\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/ownr-blog.com\\\/wp-content\\\/uploads\\\/2023\\\/12\\\/ownr-logo.svg?w=1024\",\"contentUrl\":\"https:\\\/\\\/ownr-blog.com\\\/wp-content\\\/uploads\\\/2023\\\/12\\\/ownr-logo.svg?w=1024\",\"width\":\"1024\",\"height\":\"1024\",\"caption\":\"Ownr Co\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/OwnrCo\\\/\",\"https:\\\/\\\/x.com\\\/OwnrCo\",\"https:\\\/\\\/www.instagram.com\\\/ownr.co\\\/\",\"https:\\\/\\\/ca.linkedin.com\\\/company\\\/ownrco\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.ownr.co\\\/blog\\\/#\\\/schema\\\/person\\\/2d3a90f4777763d5abc49866c1f4f694\",\"name\":\"Ownr Team\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/f25abadb65e3656ea6142f6d5a3d046d505765d0b46c9cf3f28063ba053f4bcc?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/f25abadb65e3656ea6142f6d5a3d046d505765d0b46c9cf3f28063ba053f4bcc?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/f25abadb65e3656ea6142f6d5a3d046d505765d0b46c9cf3f28063ba053f4bcc?s=96&d=mm&r=g\",\"caption\":\"Ownr Team\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Sole Proprietorship vs Corporation: Which Business Structure is Right for You | Ownr Blog","description":"Sole proprietorship vs corporation, which is right for your Canadian business? Compare liability, taxes, costs, and more to make the right choice with confidence.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/","og_locale":"en_US","og_type":"article","og_title":"Sole Proprietorship vs Corporation: Which Business Structure is Right for You | Ownr Blog","og_description":"Sole proprietorship vs corporation, which is right for your Canadian business? Compare liability, taxes, costs, and more to make the right choice with confidence.","og_url":"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/","og_site_name":"Ownr Blog","article_publisher":"https:\/\/www.facebook.com\/OwnrCo\/","article_published_time":"2023-10-03T03:50:27+00:00","article_modified_time":"2026-04-05T15:04:13+00:00","og_image":[{"width":5968,"height":4352,"url":"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2019\/03\/Cover.png","type":"image\/png"}],"author":"Ownr Team","twitter_card":"summary_large_image","twitter_creator":"@OwnrCo","twitter_site":"@OwnrCo","twitter_misc":{"Written by":"Ownr Team","Est. reading time":"12 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/#article","isPartOf":{"@id":"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/"},"author":{"name":"Ownr Team","@id":"https:\/\/www.ownr.co\/blog\/#\/schema\/person\/2d3a90f4777763d5abc49866c1f4f694"},"headline":"Sole Proprietorship vs Corporation: Which Business Structure is Right for You","datePublished":"2023-10-03T03:50:27+00:00","dateModified":"2026-04-05T15:04:13+00:00","mainEntityOfPage":{"@id":"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/"},"wordCount":2448,"publisher":{"@id":"https:\/\/www.ownr.co\/blog\/#organization"},"image":{"@id":"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/#primaryimage"},"thumbnailUrl":"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2019\/03\/Cover.png","keywords":["Business Registration","corporation","Guide","Incorporating","incorporation","sole proprietorship"],"articleSection":["Before You Start a Business"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/","url":"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/","name":"Sole Proprietorship vs Corporation: Which Business Structure is Right for You | Ownr Blog","isPartOf":{"@id":"https:\/\/www.ownr.co\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/#primaryimage"},"image":{"@id":"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/#primaryimage"},"thumbnailUrl":"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2019\/03\/Cover.png","datePublished":"2023-10-03T03:50:27+00:00","dateModified":"2026-04-05T15:04:13+00:00","description":"Sole proprietorship vs corporation, which is right for your Canadian business? Compare liability, taxes, costs, and more to make the right choice with confidence.","breadcrumb":{"@id":"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/#primaryimage","url":"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2019\/03\/Cover.png","contentUrl":"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2019\/03\/Cover.png","width":5968,"height":4352},{"@type":"BreadcrumbList","@id":"https:\/\/www.ownr.co\/blog\/a-guide-what-to-consider-when-incorporating-your-business\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Ownr Blog","item":"https:\/\/www.ownr.co\/blog\/"},{"@type":"ListItem","position":2,"name":"Ownrship 101","item":"https:\/\/www.ownr.co\/blog\/category\/ownrship-101\/"},{"@type":"ListItem","position":3,"name":"Business Stages","item":"https:\/\/www.ownr.co\/blog\/category\/ownrship-101\/business-stages\/"},{"@type":"ListItem","position":4,"name":"Before You Start","item":"https:\/\/www.ownr.co\/blog\/category\/ownrship-101\/business-stages\/before-you-start\/"},{"@type":"ListItem","position":5,"name":"Before You Start a Business","item":"https:\/\/www.ownr.co\/blog\/category\/ownrship-101\/business-stages\/before-you-start\/before-you-start-a-business\/"},{"@type":"ListItem","position":6,"name":"Sole Proprietorship vs Corporation: Which Business Structure is Right for You"}]},{"@type":"WebSite","@id":"https:\/\/www.ownr.co\/blog\/#website","url":"https:\/\/www.ownr.co\/blog\/","name":"Ownr Blog","description":"Helping Canadians Register &amp; Incorporate Their Business","publisher":{"@id":"https:\/\/www.ownr.co\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.ownr.co\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.ownr.co\/blog\/#organization","name":"Ownr Co","url":"https:\/\/www.ownr.co\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ownr.co\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/ownr-blog.com\/wp-content\/uploads\/2023\/12\/ownr-logo.svg?w=1024","contentUrl":"https:\/\/ownr-blog.com\/wp-content\/uploads\/2023\/12\/ownr-logo.svg?w=1024","width":"1024","height":"1024","caption":"Ownr Co"},"image":{"@id":"https:\/\/www.ownr.co\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/OwnrCo\/","https:\/\/x.com\/OwnrCo","https:\/\/www.instagram.com\/ownr.co\/","https:\/\/ca.linkedin.com\/company\/ownrco"]},{"@type":"Person","@id":"https:\/\/www.ownr.co\/blog\/#\/schema\/person\/2d3a90f4777763d5abc49866c1f4f694","name":"Ownr Team","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/f25abadb65e3656ea6142f6d5a3d046d505765d0b46c9cf3f28063ba053f4bcc?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/f25abadb65e3656ea6142f6d5a3d046d505765d0b46c9cf3f28063ba053f4bcc?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f25abadb65e3656ea6142f6d5a3d046d505765d0b46c9cf3f28063ba053f4bcc?s=96&d=mm&r=g","caption":"Ownr Team"}}]}},"jetpack_sharing_enabled":false,"jetpack_featured_media_url":"https:\/\/www.ownr-blog.com\/wp-content\/uploads\/2019\/03\/Cover.png","_links":{"self":[{"href":"https:\/\/www.ownr.co\/blog\/wp-json\/wp\/v2\/posts\/996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ownr.co\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ownr.co\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ownr.co\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ownr.co\/blog\/wp-json\/wp\/v2\/comments?post=996"}],"version-history":[{"count":9,"href":"https:\/\/www.ownr.co\/blog\/wp-json\/wp\/v2\/posts\/996\/revisions"}],"predecessor-version":[{"id":15386,"href":"https:\/\/www.ownr.co\/blog\/wp-json\/wp\/v2\/posts\/996\/revisions\/15386"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ownr.co\/blog\/wp-json\/wp\/v2\/media\/9600"}],"wp:attachment":[{"href":"https:\/\/www.ownr.co\/blog\/wp-json\/wp\/v2\/media?parent=996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ownr.co\/blog\/wp-json\/wp\/v2\/categories?post=996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ownr.co\/blog\/wp-json\/wp\/v2\/tags?post=996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}