The math typically tilts toward incorporation around $100k of profit. Below that, sole prop simplicity wins. Above, the Small Business Deduction (9% federal + ~3% provincial = ~12% corporate tax) beats your 30%+ personal rate. Here's your decision tree.
Recommend incorporation if savings > setup + annual accounting cost (~$1.5k/yr).
At your numbers, incorporation saves enough to justify $200-500 setup + $1-3k/yr accountant. Plus you get limited liability.
Federal: do business anywhere in Canada · cost ~$200 · more credibility. Provincial: $200-450 · only that province.
NUANS search ($30-50) ensures your name is unique. Or use a numbered company (e.g., 1234567 Canada Inc.).
File articles + initial registered office address + initial directors. Online via Corporations Canada or provincial registrar.
Auto-assigned after incorporation. Register for GST/HST, payroll, corp tax accounts as needed.
Separate from personal. Required by law for legal liability protection. Take incorporation docs to bank.