What are the advantages of incorporation?
The main advantages of incorporation include limited liability and tax advantages.
How does incorporation protect me from being personally liable?
Because the corporation owns the assets and debt rather than the owner, the owner’s personal assets will be shielded from creditors and lawsuits.
What is the tax rate that corporations pay in Ontario?
Canadian controlled private corporations (CCPC) in Ontario pay 12.5% on the first $500,000. Earnings in excess of $500,000 are taxed at a rate of 26.5%
What is the difference in tax rates for corporations versus sole proprietorships?
Corporations enjoy lower tax rates than do sole proprietors. For example, Canadian controlled private corporations (CCPC) in Ontario pay 12.5% on the first $500.000. Earnings in excess of $500,000 are taxed at a rate of 26.5%. This is much lower than personal tax rates, where the combined top marginal tax rate is 53.53%.
