thinking of forming a professional corporation?
Many Professionals in Ontario pay income tax in excess of 40%.
By forming a Professional Corporation, these professionals can achieve significant tax gains. Not only will the corporation pay tax at a much lower corporate rate, the corporation can split the income among family members via dividends, which are also taxed at a lower rate.
Once incorporated, the first $500,000 of active business income is taxed at the 15.5% corporate tax rate, provided that the income stays within the corporation.
Note: please view the website of the Canada Revenue Agency for more detailed information on corporate tax rates.
Click here for a list of Professionals we can incorporate.