Another Reason to Incorporate
“Certainly, you will need to probably incorporate if you want to look for financing, because that demonstrates to a lender that you are committed to going for the long haul,” said Ted Mallett, vice-president of research and chief economist at the Canadian Federation of Independent Business.
“It’s super easy to start or stop a small business if you’re a proprietorship, but you need to give some assurance to a financier, just like you have to give assurance to a supplier or a customer, that you’re going to be around next year,” Mallett said (Ann Perry, Banking on a home-based business, TheStar.com).
Personally I think this is silly as corporations have no immunity to financial difficulties and can go bankrupt just as easily as sole proprietorships. But Mr. Mallet would know, so if you’re looking for a business loan and your business is not incorporated already, this may be a step you need to take.
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