A corporation is an artificial legal entity that is created by the federal or a provincial government. As its own legal entity, a corporation can enter into legal contracts on its own behalf.
In theory, a corporation has an infinite life and offers a good degree of creditor protection for the shareholders, but this protection is not perfect. The shareholder may need to act as a guarantor to receive a bank loan and could be held liable for government remittances.
If you need to take money out of the corporation to live on, you can do this in the form of wages and/or dividends. Wages and dividends are taxed differently in the corporation and to you personally as income. We can work with you to decide the best combination for your unique situation. You could also borrow money from the corporation, but these funds must be paid back within two tax years or else you will be taxed personally as if it were income.
If you are starting a new business as a corporation, or transferring an existing business into a corporation, you are able to transfer assets into the corporation on a tax free basis if the proper elections are filed. If you do not file this election to transfer business assets, you could be forced to pay unnecessary taxes. I can help you determine if these elections are necessary and assist you in filing these elections.