Limited Personal Liability
This limits the liability of the owners/investors to only the amount of their investment. The owners of a corporation are not personally liable for business debts, claims, or other liabilities.
- Perpetual Existence
The existence of a corporation is considered perpetual, although it can be terminated voluntarily by its owners (shareholders).
- Better fringe benefits
While all business entities can provide fringe benefits to its owners and/or employees, the Corporation allows for a greater range of benefits.
- Advantageous Corporate Tax Treatment/Income Splitting
Tax rate on corporate income is usually lower than the tax rate on personal income up to the first $75,000 in income. The owners can arrange salaries and bonuses in conjunction with retained corporate earnings to lower their overall tax rate.
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