Business Incorporation Services in Oakville

Ask any business owner, and they will tell you that there are risks in doing business. You might incur losses, or you might build up your debt and cannot pay it back. If you have a sole proprietorship, it means that your personal assets can be used to pay the business’s debts. This could even include your house. But when you work with GTA Accounting, we help incorporate your business in Oakville. Your liability is limited to the company’s assets and not your own. We have an expert CPA who will help you and guide you throughout the process. He will assist you in determining which type of corporation you should opt for. Our exceptional accounting team will make sure that all your documentation is complete and submitted on time.

When you turn your business into a corporation, you can take advantage of lower corporate tax rates in Canada. Personal tax rates in Canada are higher. This way, you can save a lot of tax or even defer tax when you declare your business as a corporation. Also, you are more flexible in earning your income through a corporation, which means you have to pay fewer taxes. For example, if you have a sole proprietorship and earn $180,000 a year, you will have to pay personal tax on the total amount. But if you are a corporate business, you will have to pay a fraction of the taxes and save your money. When you work with our accounting firm, we tell you all of this, and more so you can save your money, time, and effort.

Currently, there are fewer benefits for income splitting than there were before. Before 2018, most of the businesses were incorporating because of this reason. They could distribute their income with a lower-income spouse, and they were then taxed at a lower rate. This all changed in January 2018. The new regulations make it hard to do this, but it can still be done to some extent. Now, if you are nominating your spouse for distribution, they have to put in at least 20 hours a week in the business to become eligible.

Contact our expert consultants today to find out more about business incorporation services in Oakville and how you can take advantage of them.

Let’s say that you built a business from scratch. Now, the company has grown so much that the yearly revenue is around $850,000. You have spent enough time in the business world and now want to retire by selling your business. You go out in the market and find a buyer willing to pay you $865,000 for the shares. If you had a sole proprietorship, this money would be taxable, and you would have to pay approximately $180,000 in taxes. But if you were a CCPC business, you could qualify for the LCGE, and the entire amount would be exempt from tax.

But incorporating a business and qualifying for the LCGE are highly complex tasks with a lot of requirements. That is why you should contact GTA Accounting experts TODAY to start the process of incorporation for your business.