Category Archives: Businesses

Incorporating Your Startup

Posted on April 22, 2014 by John Moore

A corporation is the most common business structure in Canada. There are many benefits to incorporating your business, including income tax, legal and funding considerations. To fully understand the advantages of incorporation, it is helpful to possess a basic understanding … Continue reading →

Posted in Businesses, Incorporation, Technology | Tagged capital gains exemption, income splitting, Incorporation, partnership, sole proprietorship, startup | Leave a comment

Incorporation Benefit – Tax Deferral

Posted on October 21, 2013 by John Moore

Because a company is taxed at a much lower rate on business income than an individual, there is the potential for a large tax deferral. Consider a professional who earns $300,000, but only needs $200,000 before tax for personal use. … Continue reading →

Posted in Architects, Business Professionals, Businesses, Chiropractors, Dentists, Doctors, Engineers, Health Professionals, Income Tax, Lawyers, Medical Residents, Mortgage Brokers, Optometrists, Realtors, Uncategorized, Veterinarians | Tagged kiddie tax, maternity leave, sabbatical, tax deferral | 1 Comment

Income Splitting With A Professional Corporation Can Save You Thousands

Posted on March 6, 2013 by John Moore

Income splitting with wages can save you thousands of dollars. Income splitting with dividends from a professional corporation can save you tens, even hundreds, of thousands of dollars. My last post explained how income splitting works. In this post, I am going to provide examples of the … Continue reading →

Posted in Architects, Business Professionals, Businesses, Chiropractors, Dentists, Doctors, Engineers, Health Professionals, Income Tax, Incorporation, Lawyers, Medical Residents, Mortgage Brokers, Optometrists, Professional Corporation, Realtors, Veterinarians | Tagged income splitting | 11 Comments

Incorporation Benefit – Income Splitting

Posted on November 8, 2012 by John Moore

In my ongoing series on professional incorporation, I’ve discussed what a professional corporation is (a distinct legal entity) and which professions allow incorporation (doctors, dentists, lawyers and realtors among many others). I’ve shown how the lower corporate tax rates can assist a … Continue reading →

Incorporation – Taxation of Salary and Dividends

Posted on October 29, 2012 by John Moore

In my last post, I discussed the lower tax rates on professional income earned in a corporation. In BC, any professional income that you earn personally in excess of $132,000 is taxed at 43.7%. In a professional corporation, the first $500,000 … Continue reading →

Incorporation Benefit – Lower Income Tax Rates

Posted on October 22, 2012 by John Moore

As I noted previously, there are several benefits to incorporating your practice. One of the greatest advantages of a professional corporation is access to lower income tax rates. In Canada, we have a progressive tax system. As you earn more … Continue reading →

Posted in Architects, Business Professionals, Businesses, Chiropractors, Dentists, Doctors, Engineers, Health Professionals, Income Tax, Incorporation, Lawyers, Medical Residents, Mortgage Brokers, Optometrists, Professional Corporation, Realtors, Uncategorized, Veterinarians | Tagged income tax rates in canada | Leave a comment

Professional Corporations – Why Incorporate?

Posted on October 19, 2012 by John Moore

In my last post, I discussed which professions can incorporate in British Columbia. But why would you want to incorporate your practice? Because the other doctors or dentists in your clinic have incorporated, or the other lawyers in your office have … Continue reading →

Employee Gifts

Posted on December 22, 2011 by John Moore

With Christmas right around the corner, it seems appropriate to take a quick look at the taxation of employee gifts. Nobody is ever going to confuse Canada Revenue Agency (CRA) with Santa Clause, but at least CRA does provide some small relief from … Continue reading →

Posted in Architects, Business Professionals, Businesses, Chiropractors, Dentists, Doctors, Engineers, Health Professionals, Income Tax, Lawyers, Mortgage Brokers, Optometrists, Realtors, Veterinarians | Tagged $500, Benefits, Canada Revenue Agency, CRA, Employees, Gifts | Leave a comment