Incorporating Your Sole Proprietorship: The Section 85 Rollover Question

Are you in the next stage of growth in your business? Are you ready to incorporate? Are you ready to speak to an accountant?

If the answer is yes, then be ready for some additional admin work.

You may have heard the term ‘section 85 rollover’ from other small business owners who’ve gone through the transition from a sole proprietorship to a corporation. The concept is an important process to take into account when making the transition.

When you’re operating as an unincorporated entity, for example an individual/sole proprietor, you’re forming all kinds of relationships. You’ll have relationships with suppliers, customers, competitors, etc. all of which contribute to the growth of your business. By the time you’re ready to incorporate, you’ve likely developed some amount of goodwill.