OUR SERVICES

There is no "one-size-fits-all" answer, but generally, incorporation becomes beneficial once your business earns more than you need for your personal cost of living. This allows you to leave excess profit in the corporation at a lower tax rate (approx. 9% federal for the first $500,000). Incorporation also offers limited liability protection. We can perform a "break-even" analysis to see if the tax savings outweigh the additional legal and accounting costs

The CRA has updated trust reporting requirements for 2026. If you are on title for a property or bank account that belongs to someone else (e.g., a parent on a child’s account for convenience), you may have a "Bare Trust." While there are now exemptions for assets under $50,000 (or $250,000 for certain family arrangements), it is vital to check your status to avoid significant "gross negligence" penalties

This is a strategic choice. Salary is a deductible expense for your business, creates RRSP contribution room, and requires CPP contributions (which provides a pension later). Dividends are paid from after-tax profits; they are often simpler to administer and don’t require CPP, but they don't create RRSP room. Many owners use a "mix" to optimize their personal tax bracket while saving for retirement.