Should you incorporate my business for better tax efficiency? Download and try our calculator, you’ll know.
Please note:
- If you are on a Mac computer without Excel, you can open it with the Numbers app.
- This calculator was designed to help Ontario realtors to decide if they should go for the PREC, but anyone can use it to see if incorporation can work better.
- When we say “individual income” in the calculator, it means the corporation pays to one person. We know the tax rate for 10K income to one person is way different than the same amount shared by 10 people. As such, the direction to incorporation is more appealing.
- I did not go deep to the dividend gross-up level, so the statement of “corporation paying individual” is generic.
- Maintaining a corporation is a bit more expensive, I’d say there would be an extra $3-4K cost for that.
- This calculator is based on the tax brackets published by the authorities, however, please use it at your own risk as it is not meant to be 100% precise to the reality.
Danny Chen, Director & COO, JKtax Inc.
Office #: 905-940-1999；Email: admin@jktax.ca; Office wechat: jktax-vivian
