Also, the reason your bank suggested incorporation is that running a corporation becomes more of an industry standard. Corporation indicates that the investor/businessman is serious about his business. It may sound funny, but I hear it all the time.

One thing you have to be careful about is getting mortgage under your corporation. Some banks require much higher down-payments for corporation. As individual you may qualify for better terms.

One other benefit of having corporation is that tax auditors review individual tax returns more often than corporate tax returns. Many people will disagree with this statement, but it is no secret that to audit corporate tax returns the auditor must have higher level of education and more experience. CRA has a large number of auditors that review individual tax returns and only a limited number of qualified auditors to review corporate tax returns. Your books must be in order in any case, but you have a higher chance of being audited as an individual.

In conclusion, what is good for one person may be very bad for another. Corporation does offer a huge potential for planning, especially when you are making money, but there are numerous issues that you have to review to truly know if corporate structure is for you. One thing I found out is that not every lawyer or accountant can help you. You should really shop around.

Thanks,
Peter