should-you-incorporate

When should you Incorporate?

When should you incorporate your business? Generally, when your business incurs more money than required, then you should consider incorporating your business. In doing so you would benefit from the most tax advantages.

If you have a sole proprietorship that makes $200,000 in taxable income or more, you  will be subject to, between a 40 and 50% tax rate.

Any business that has a net income under $500,000 can essentially pay a tax rate of approximately 10%. You can take advantage of this in the tax planning phase when you execute on payroll and dividends; taking the opportunity to portion funds to be left in the business. By doing this and only paying yourself the bare minimum in dividends, without any other sources of personal income, the highest level of tax efficiency can be achieved.

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