Reasons Establishing A Corporation
There are three main reasons for establishing a Canadian-Controlled Private Corporation
- transferring liability
- more tax deductions
- low tax rate up to the Small Business Limit
The CDA allows a tax-free transfer to shareholders in some situations.
The three taxable ways to take money out of a corporation are
- taxable salary (deductible to the corporation)
- taxable bonus (deductible to the corporation)
- taxable dividends (paid from after-tax corporate income)
page revision: 2, last edited: 12 May 2007 00:41