Incorporation allows tax deferral: income left inside the corporation is taxed at the small business rate until you take it out. That is valuable, but only if you earn more than you need to spend.
If you withdraw everything each year, total tax ends up broadly similar to staying a sole proprietor, and you have added legal, accounting and filing costs.
A useful test: once you could comfortably leave a meaningful amount in the business each year, it is time to run the numbers properly.
This article is general information, not advice for your specific situation. Please speak with a Ledgex CPA before acting on it.
