There There are three main reasons why you should incorporate your business:

1. Save Your Money

• shareholders of corporations have limited liability for business risks;
• you can use a corporation to save tax or to defer paying tax to a later date because the small business corporate tax rate for the first $300,000 in income (being phased in) is about 17% compared to the top personal tax rate of about 44%;
• unlike partnerships where partners are usually personally liable for the business acts of their partners, in a corporation shareholders are not personally liable for the acts of the directors, officers or other shareholders (except in certain rare exceptions).
• corporations don't have withholding taxes, CPP or EI deducted by the companies that hire their services

2. Improve Your Image

• incorporated businesses have a better image than unincorporated businesses;
• it is easier for corporations to attact investors.
• A British Columbia corporation is well respected worldwide and is particularly well suited to market goods and services in North America

3. Make Yourself More Attractive

• Employers in many business sectors, particularly the motion picture and TV production and construction sectors prefer to hire corporations rather than individuals to save money and increase certainty. This is because corporations cannot be deemed to be employees as often happens when employers hire individuals as independent contractors. This makes it is easier to find work if you offer your services as a corporation. Some technical tax rules make this trick work better if you have a number of different businesses that hire your corporation's services (and potentially harmful if you work for only one company).
• Customers in North America are often reluctant to buy goods and services from foreign based corporations. If you live outside North America but wish to sell your goods and services there consider setting up a BC corporation with a virtual presence in British Columbia.