Benefits of Incorporating in Ontario

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Thinking of incorporating in Ontario. Download our free guide. It outlines the benefits of incorporation and answers some of the most common questions.

Incorporating in Ontario?

 

When starting a business, new proprietors face many decisions about how to best set up their companies. Is a sole proprietorship, partnership, or incorporation the best option? Are you trapped into a specific model as your business evolves? How can you set yourself up for the best tax situation possible? We help both fledgling companies and established small businesses navigate their financial planning so that they make the most of their time and investment.

incorporating in Ontario
incorporating in Ontario

Would Incorporating in Ontario Benefit My Business?

Incorporating a small business has many benefits, like limited liability, tax advantages, increased credibility, and tax-free capital gains. However, this option is not for everyone, and it may not be the best move for your business. Incorporating a business in ontario is a complicated and expensive endeavor, requiring more administrative costs and management efforts. Our team can review your business, as well as your future goals, and help you determine whether the benefits of incorporation, for you, will outweigh the drawbacks. If incorporation is best for your business, we will then walk you through the process, assist you with the paper work, and help you begin this endeavor on the right note.

We know that, for small business owners, time is precious. Many seek streamlined options for incorporating a business online. we can work with you to expedite the process so that you aren’t losing income from time wasted on bureaucratic paperwork. We understand the unique tax and accounting situations you face, including the dilemma of whether incorporation is the right move. Our services work to adapt to your schedule and needs, and act as a springboard for financial success.

Benefits of Incorporating in Ontario

If you are presently a sole proprietor, in a partnership or an employee, there are many reasons to consider incorporating your small business. Below are some tips and benefits of incorporating as a company.

Significantly Reduce Your Taxes

You can significantly reduce your overall income taxes by leaving income in your corporation that will taxed at significantly lower rate, and avoid the highest personal income tax rates which can be as high as 40% to 50%.

Protect Personal Assets

Your company provides you with limited liability from your corporate IT contracting work, resulting in protection of your personal assets.

Get A Tax Free Loan

You may be eligible to borrow money from your company to buy a home or automobile without having to immediately declare the loan as personal income.

Increase Your Marketability

Due to the increased tax audit risk from the Canada Revenue Agency (CRA), many large customers prefer to deal only with incorporated ITcompanies, instead of sole proprietors.

Smooth Income

You can significantly reduce your overall income taxes by leaving income in your corporation that will taxed at significantly lower rate, and avoid the highest personal income tax rates which can be as high as 40% to 50%.

Build A Big Corporate Retirement Fund

Using the low corporate income tax rate of approximately 20%, you can retain income in your company, and use your company as a strategy to accumulate a significant retirement investment portfolio for yourself.

Receive Tax Free Dividends

Upon retirement, or during a sabbatical from working, your spouse and you can receive dividends of approximately $30,000 each from your company, and if you have no other personal income, the total $60,000 of dividend income can be received as personal income tax free.

Additional Tax Strategies Available

Corporations have additional tax and financial planning strategies available for your use such as the creation of individual pension plans, investment holding companies, joint venture companies, etc.

Ready To Incorporate?

We can help!  Our expert team will ensure your new corporation is structured properly.  We will work with you to make the process as easy as possible.  Our no fee pricing guarantees that you can get the expert advice you need, while feeling confident that you are getting the lowest price possible.

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