How Corporate Taxes Work in Canada 🍁 | Learn the Benefits of Incorporating📈

This is Part 2 of our two-part series on how Canadian taxes work.

Joe explains the key tax concepts about running a business through a corporation in Canada.

In the video, we answer the questions:
► How are corporations taxed?
► What are the tax benefits of incorporating your business?
► How to pay yourself from your corporation?
► What are the common pitfalls that we see with corporations?
► What are some disadvantages of corporations?

PART 1 | PERSONAL TAXES
Check out part one of our series on Canadian taxes here:
►    • How Taxes Work in Canada 🍁 -  Learn t...  

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🎥 CONTENTS OF THIS VIDEO

00:00 - Intro
01:03 - Introducing Pam
01:31 - Your Corporation Is a Separate Entity
01:48 - Limited Liability
02:14 - The Concept of Integration
02:41 - Tax Benefits of Incorporating
02:50 - Lower Tax Rates
03:34 - Lifetime Capital Gains Exemption
04:37 - How Income Is Taxed in Your Corporation
04:45 - Active Business Income
05:00 - Small Business Tax Rate and CCPCs
06:06 - Investment Income in a Corporation
06:53 - How to Pay Yourself From Your Corporation
08:13 - Disadvantages of Corporations
08:27 - Increased Administration and Compliance Costs
08:41 - Missed Personal Tax Credits
08:57 - Losses Can Be Difficult to Use
09:33 - Tax Pitfalls for Corporate Businesses
09:45 - Inadequate Tax Planning
10:12 - Passive Income Limits
10:29 - Corporate Assets for Personal Use
10:50 - Pam and Incorporation

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🔗 MENTIONED IN THIS VIDEO

► Lifetime Capital Gains
https://www.avalonaccounting.ca/blog/...

► Investment Income Tax Rates
https://www.avalonaccounting.ca/blog/...

► How To Pay Yourself From Your Corporation
   • Salary vs Dividends - Take 15 Minutes...  

► Personal Use of a Corporate Vehicle
   • Company Cars in Canada - How They Wor...  

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❓ FAQs

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► Should I incorporate my business in Canada? http://bit.ly/INCORPCAN
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► Should I offer profit sharing? http://bit.ly/PROFITSHARECAN

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