Incorporating your business makes ultimate sense once profits exceed your living requirements by a certain amount, as the surplus, if it remains within the company, is taxed at much more favourable results on corporations (encouraging companies to retain earnings).
However, even then there is still more that can be done to protect those earnings from taxation, or at least minimize the rate at which they are taxed.
Your options are wide and varied and, as your accountant, our role is to clearly describe your options and help you make informed business decisions.
The result will be that you take advantage of all possible options of incorporation and are able, in time, to pass-on your business with minimal fuss to the next generation, or if your goal is to sell, then the strategies selected may be different, but the result the same.
Minimize Your Corporate Income Tax with Tax Partners Oshawa
Our goal is to help you prepare your corporate tax return. With over 38+ years of working in this area, we have the ability to assist you and identify opportunities for your company to successfully complete your company’s Notice to Reader financial statements.
Your company will go through many stages of a cycle. We recommend you talk to our team when:
- Your business becomes profitable and grows
- your business structure becomes more complex
- the government introduces new tax legislation and tax law changes
- the business acquires another business or real estate
- your business divests itself of an operating unit or sells a significant asset
- business expands internationally
- the business acquires another business or real estate
- your business divests itself of an operating unit or sells a significant asset
- business expands internationally
- you’ve decided to sell your business or transfer it to a family member
- you are planning for retirement and the distribution of your wealth to your estate
- you are preparing your Will
Our firm is focused on providing value-added services to our private corporate clients. This is particularly true for the tax services provided to our family-controlled businesses. We take a proactive role with our clients to assist them in all aspects of corporate tax preparation, owner remuneration and representations on matters with taxation authorities.
Call today for a free initial, no obligation consultation with our team of accountants so we can help reduce your exposure to income taxes.
People also Ask
What Are Corporate Taxes?
Corporation Tax or Corporate Tax is a fixed rate tax on the net income or profit of a corporate entity from their business, foreign or domestic. The main purpose of Corporation Tax is to raise revenue for the country, which in turn helps the government spend more on other priority items such as healthcare and education.
How to Calculate My Corporate Tax Bill?
The Part I tax rate is 38 percent of your taxable income. The top rate after federal tax abatement is 28%. This rate of 15% applies to the net tax liability of Canadian-controlled private corporations claiming a small business deduction, after they apply their general reduction and federal reductions.
