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Discuss whether Mr Caron should incorporate his business

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Question - Philip Caron is in his mid-fifties and he is married with two teenaged children. For over 15 years he has worked as an unincorporated welder. The business is currently netting approximately $250,000 per year. In recent years, Mr. Caron has been using about half of the business earnings for personal living expenses. In the last five years, he has been refining a fork lift that can be attached to half-ton trucks. He has a product that is selling well with few malfunctions, and he is in the process of patenting the design. As a result, his welding business is now predominantly manufacturing these fork lift units. Some of his welding equipment is old and he is faced with the need to replace it. Also, he needs to acquire larger welders and pipe benders to mass manufacture the fork lift. The business expansion will require substantial capital investment for which external financing will be required. Briefly discuss whether Mr. Caron should incorporate his business.

Reference no: EM133109498

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