It is about Canadian Income Tax

AP 15-1 (Advantages of Incorporation) Philip Caron is in his mid-fifties and is married with two teenaged children. For over 15 years he has been carrying on a welding business as a sole proprietor. Business profits are approximately $250,000 per year. In recent years, Mr. Caron has been using about half of the business profits for personal needs. In the last five years, he has been working on a new fork lift design that can be attached to half-tonne pick-up 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, the focus of the welding business is now predominantly manufacturing these specially designed fork lifts. Some of his welding equipment is in need of replacement. In addition, he needs to acquire specialty manufacturing equipment to mass produce the fork lift. The business expansion will require substantial capital investment and external financing. Required: Briefly discuss whether Mr. Caron should incorporate the business