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, 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.