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Old 11-15-2012, 12:34 AM   #13
ScotcH
6th Gear Member
 
Join Date: Dec 2003
Location: Ottawa, ON
Posts: 1,872
Quote:
Originally Posted by sirex View Post
if you do it right, by incorporating you can pay your self dividends rather than a salary. which means you pay practically no tax on $80,000.
Totally incorrect. The corp pays the tax. Dividend is payed out after tax. They amount to the almost the same thing in the end if you are the only employee.

OP: If you are making money, incorporate. If you will lose money, sole prop since you can write off against personal income. This is only good for a couple years though.
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Last edited by ScotcH; 11-15-2012 at 12:38 AM.
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