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Discussion Starter #1
Should my wife incorporate, will we see any tax benefit?

My Income ~ $105,000
Wife Income ~ $160,000
No Children Currently

I am an employee of a large firm so no chance to incorporate. Wife is self employed.

Business Details:
- Excluded from GST program due to nature of work
- No employees
- Expenses ~ $5000
- No Travel/Car expenses
- Home office (1 room in our house, ~$170,000 in mortgage remaining)

Does it make sense to incorporate? Liability benefit will not apply due to nature of work. Currently our accounting expenses are only ~$150. If she decides to incorporate accounting fees will increase to ~$2000/year. In addition to lawyer fees of about ~$1500 in year one to set up corporation.

Would we see any/enough tax benefit to justify the costs of incorporating?

Thanks
 

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Canada Revenue has fairly strict rules on personal incorporation. If the earnings are basically from one source and the work being performed that of an employee, then they will consider one an employee. Check with a Tax accountant for sure.
 

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Single employee corporation with no assets or business expenses will be under fire in the next budget. Doctors, lawyers, consultants.

You will spend a bunch of legal and accountant tax advice then probably get hit anyway.
 
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