06/23/2021
If you need any assistance with incorporations or tax planning advice please reach out.
When your business is thriving, and you make more money than needed to cover your personal expenses, this is the time to consider incorporating your business (transferring your business to a company).
From a purely tax perspective, you do not want to be taxed on all your business income in your personal name. You are taxed more than 25% on the income from your business (It gets higher as you fall into higher income brackets), whereas your corporation will only be taxed 12% for the income earned in the corporation. That is a massive difference in dollars available for you to expand your business.
For a corporation to only be liable for 12% tax it must be a Canadian Controlled Private Corporation and eligible for the Small Business Deduction. This also only applies to the first C$500,000 profit of the corporation.
View this post on our website: https://www.arcuslegal.ca/blog/corporate-tax-planning-part-1-transfer-business-into-company
View this post on LinkedIn: https://www.linkedin.com/feed/update/urn:li:activity:6813480718480510976
