‍Incorporating a business is important for two primary reasons: (1) to protect personal assets from business creditors; and (2) to obtain favorable tax treatment for all business income. For more on this, please read our previous article: Why Incorporate Your Business?

Why Should You Incorporate? What are the reasons to incorporate your business? How to protect your personal assets and save on self-employment. Corporation Law explained by Learn About Law.

A minority shareholder can hold some power, but they do not hold full majority control as they, individually, own less than half of the company. Conversely, a majority shareholder is one who does hold full control over a company by owning the majority of the company’s shares. Because a majority shareholder owns over half the company, this gives him or her power over the company’s decisions, and limits the power held by the minority shareholders. When a company decision needs to be voted on by shareholders, the majority shareholder will be the one who can essentially make or break the decision as they have the most power and control.