There is a common lack of understanding of what incorporating actually means. It refers the structure of the business only, and mostly for how the income is handled for tax purposes. It will not release you from personal liability or protect you from lawsuit in any way. Incorporating is expensive, and while you would pay less income tax because you'd receive the income personally as dividends, our income is generally so small, and our income tax negligible, that home daycares run as sole proprietorships. You would need articles of incorporation set up by an accountant and a business bank account which charges for each deposit as well as withdrawal. Incorporating doesn't make any sense for us.