As a sole proprietorship, you pay the personal tax rates on what your business earns (which increases as your income goes up). As a corporation, you pay the personal tax rates on what your company pays you, and your business pays the corporate tax rate on what it earns (which doesn’t increase as the business income goes up).

Emerald's team can get you your incorporation document within 24 hours — so you can pocket those tax savings!

The next big reason to incorporate is liability protection. If your sole proprietorship is sued, they’ll be able to go after all your personal assets (i.e., your house). If your corporation is sued, it is a separate entity, so they can only go after assets that belong to the corporation (I.e., not your house).

Want to learn more about why you should consider incorporation? Emerald is waiting by the phone (not literally but figuratively).

When Should you Incorporate?

Generally, we start to see significant tax savings when your sole proprietorship reaches $50,000 to $60,000 in gross annual revenue (before expenses). Should you wait until then? Hell no.

If you’re projecting your business to earn over $50,000 in a twelve-month period, you’re better off to incorporate right away.

How to Incorporate in Alberta

You’re probably thinking it’s a hard and confusing process. And it can be — especially if you decide to wait in line at a registry and fill out a bunch of government forms.

There’s an easier way. You don’t even have to leave your couch.