If you have a business then it might be a good idea to consider incorporating into an corporation otherwise known as a limited liability corporation. There are a number of different benefits for corporations such as the low corporate tax rate and limited liability protection.
If you are looking to start a business or you already have one, then you should consider incorporating into a corporation. You are probably asking yourself what are the advantages of an corporation? Well there are two primary advantages of a corporation. Firstly, having a corporation provides limited liability. Corporate debts are not in obligation of individual shareholders.
Another advantage is a corporation pays a very low tax rate of only 15.5 %. In addition, you can pay yourself a lower salary, allowing you to fall in a lower tax bracket, thereby saving a lot of tax dollars.
If you like these tips about merits of an corporation and want to know more drop us a comment below or visit madanca.com. As always, don’t forget to like and subscribe so we can bring you more tax tips every week.
About the Author – Allan Madan
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation . Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.