Incorporation for growing businesses in Halton Hills

Halton Hills sits on the Highway 401 trades-and-logistics belt between Milton and Guelph. The businesses that call us are contractors, haulers, and specialty shops that have outgrown a sole prop because a general contractor asked for a WSIB clearance and a corporate name on the bid.

Limited liability is the legal reason. The tax reason is profit you do not need this year. Active business income left in an Ontario CCPC is taxed at about 12.2% up to the small-business limit, instead of your personal marginal rate. Money you must take home is still taxed personally, as salary or as a dividend.

Incorporation does not replace insurance, and it does not erase a personal guarantee on a truck loan. It does put a wall between the operating risk and the house, if you respect the wall: separate bank account, no personal groceries on the corporate card, and a minute book that shows who owns the shares.

Named incorporation is $950 + HST. If you are comparing that with staying a sole prop for one more season, use the calculator, then send the form.