Resources & Insights

BARRISTON BRIEFS: Can I Save Taxes By Incorporating?

In the new series, Barriston Briefs, Joanne McPhail talks about how save taxes by incorporating.


[Music] there can be some tax advantages to incorporating your business some people do it right away for limited liability protection and maybe don’t get a great advantage from a tax perspective right away but down the road might some people have been running a sole proprietorship or a partnership for a while and decide they want to incorporate usually it’s because they’re actually making more money in the business than they are spending if that’s the case for you then it might be something to talk to your accountant about with respect to your own personal situation but the gist of it is you can roll your business into a company and then to the extent that you’re leaving money in the company and not taking it in personally that money is subject to less tax than probably your payment or personal Highness rate you will have to pay the tax eventually but not until you take the money out of the company which means that you have more after-tax money working for you in your company to either reinvest it to grow your business or to save for retirement of course with any situation you want to speak to your personal accountant with respect to whether or not incorporation would be a benefit to you from a tax perspective [Music]