Forming a corporation carries many benefits. These include:
- The right to use your company’s name across Canada
- Limited liability protection
- Lower corporate tax rate than for individuals
- Access to loans and grants
As well as filing your annual corporate tax returns a company must keep accurate financial records at all times in case they are audited. Canadian businesses with overseas investments must also file a T1134 form. Failure to comply can result in a substantial penalty. The Canadian government has made it a point to aggressively pursue companies that avoid taxes, often through sophisticated legal matters.