As an individual, you don't need to register a business name – you can always conduct business under your personal name. The incorporation of a business does have certain benefits though. Business names are useful for marketing purposes, and also allow you to accept and make payments with your bank under a business name. More importantly, incorporation protects your assets personally from legal liability.

For the most part, it's just a preference. The federal, however, gives your business increased business name protection and wider rights to conduct business. You may also opt for federal incorporation if you plan on conducting operations in multiple provinces or simply extra provincially register your province corporation in other provinces.

The biggest advantage of incorporation is limited liability for shareholders. Under law, a corporation is considered to be a legal person that is distinct from the shareholders who own it. This means that individual shareholders are not personally liable for the debts and obligations of the corporation. If a corporation fails, the shareholders will lose the amount of equity invested with their shares. One disadvantage of a corporation is that income is taxed at two levels: first on income for the corporate entity, and then at the shareholder level where shareholders are taxed on any dividends they have received.

Yes, a director can be appointed to any office of the corporation, and can also hold shares of the company.