Glossary

HSA - Health Spending Account or Health Savings Account - A health spending account is a self-directed, self-funded account in Canada into which you pay monthly HSA fees. HSA healthcare plans differ from traditional insurance because you design your plan based on your budget and your needs, plus you never lose what you don't use.

Incorporated Company -The extended liability protection is one of the main reasons that businesses choose incorporation. Theoretically, no member of the company can be held personally liable for the debts, obligations, or acts of the company. A shareholder is only liable for the unpaid portion of shares owned.

Incorporation may be done provincially, giving a company the right to operate under its corporate name in a particular province. Federal incorporation gives a company the right to operate under its corporate name throughout Canada.

Sole Proprietor - You are a sole proprietor (self-employed individual) if:

Your business is not incorporated;
You have sole responsibility for decision making;
You receive all profits and are responsible for all losses; and
You report your business income on a T1 Individual income tax return.

Limited company - A company that is incorporated.