[kohanz]

I run a sole prop in Canada too. I agree for the most part, but I think the "more taxes" aspect would be very situationally-dependent. Perhaps if you intend to flow all of the corporations earnings through as income immediately then you may pay more taxes, but often one reason to incorporate is to be able to defer those taxes by only taking the income that you require at the time (tax deferral to years when you'll be in a lower bracket). The only way I've been able to avoid huge income tax bills as a sole prop is by making massive RRSP contributions. Being incorporated would give me a bit more flexibility in that regard.

You could also employ a spouse in a role (e.g. administrative) to provide a form of income splitting (although the gov't is planning to crack down on abuse of this).

[tempestn]

This is all true, but if you haven't seen them already, you'll probably want to read up on the changes that are being proposed to taxation of CCPCs currently. All the details are supposed to come out with the 2018 budget, but here are some blog posts covering the developments so far:

http://www.thebluntbeancounter.com/2017/09/tax-planning-usin... http://www.thebluntbeancounter.com/2017/10/tax-planning-usin... http://www.thebluntbeancounter.com/2018/01/the-revised-tax-o...