The Issue
Lawyers, accountants, doctors, dentists, chiropractors, etc will need to answer the following question:
Should I incorporate my practice?
The Myths
The Spender Myth:
"There is no benefit because I spend all of my money."
The Saver Myth:
"It is only a tax deferral, I will eventually have to pay the tax."
| Tax Rates (Personal) Personal Tax Rates: taxable income of $103,000+
|
Tax Rates (Corporate) Small business rate on first $200,000 annual income:
|
Keeping the Benefit
Opportunity for $500,000 capital gain exemption on sale of shares.
Opportunity for multiple will planning to avoid probate.