There are various factors to consider in deciding whether or not to become incorporated and it is difficult to do justice to this discussion in a brief written paragraph. These factors include the nature of the business, the risk involved in the business, the number of clients, the objectives of the owners, etc. It is a good idea to have a discussion with your accountant first. The advantages include limited liability and a certain ability to be able to manage your taxable income. The downside is increased administration and related costs. Some businesspeople incorporate before they are really prepared and regret this decision. A corporation has to prepare financial statements and file its own tax return, among other things. A corporation should maintain adequate "books and records", which implies a minute book and a reasonable set of accounts. The accountant should obtain a good understanding of the business and the owners' needs, before recommending incorporation. If you are in the Toronto area, it would be my pleasure to meet with you to discuss whether incorporation is appropriate for you. I can be reached on xxx-xxx-xxxx, in order to arrange an initial consultation. The website is http://www.baystreetservices.com/ Bay Street Accounting and Tax Services. Regards, J.L. CPA, CGA