How Corporate Taxes Work in Canada 🍁 | Learn the Benefits of Incorporating📈
Тәжірибелік нұсқаулар және стиль
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 Cana...
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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
www.avalonaccounting.ca/blog/...
► Investment Income Tax Rates
www.avalonaccounting.ca/blog/...
► How To Pay Yourself From Your Corporation
• Salary vs Dividends - ...
► Personal Use of a Corporate Vehicle
• Company Cars in Canada...
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We provide online bookkeeping, accounting services and expert financial advice for small businesses.
We are on a mission to educate small business owners through our KZread channel, blog and free resources. Check out our links below to dive in.
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❓ FAQs
► What Can I Write-off? bit.ly/EXPENSESCAN
► Should I incorporate my business in Canada? bit.ly/INCORPCAN
► What is a shareholder loan? bit.ly/SHLOANCAN
► When and How Should I Hire an Employee? bit.ly/hirelikeapro
► Should I offer profit sharing? bit.ly/PROFITSHARECAN
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If you are looking to incorporate (in Canada) and want to save some cash, check out Ownr with our affiliate link for 20% off incorporation costs:
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Пікірлер: 29
nice to see another video from you joe! cheers and thanks for sharing
Enjoy to watch your video, amazing valuable tax information about incorporating. Thank you for the wonderful sharing.
loved this well done!
Great video, thank you.
Your videos are already very interesting and fun to watch without adding any other clips 👍
@AvalonAccounting
Жыл бұрын
Thanks Sarwar - glad you like the videos! The goofy clips are mostly for our own entertainment :)
Hi Joe! Thanks so much for your videos, really helpful. A small question regarding sales tax, If I sell access to online pre-recorded video trainings in a platform such as Kajabi, do I need to charge taxes to my customers? I am finding conflicting information everywhere. I have a corp based in Canada and sell to all canada and other countries. Thanks so much!
All great info! For a newbie like me though it’s still dizzying. I’m a contractor working overseas for a foreign company, but still a legal Canadian resident. And for the life of me I don’t know if I’m better off incorporating into an LLC or something like that, or not. I get absolutely hosed on my income taxes, to the tune of about $74K per year. Here’s gotta be a better way 🤢
Hi Joe , Great content. Thanks for putting those contain every month. I have a question about holding compony , i already have incorporation which is doing and i dont have holding compony , There is a lot of money accumulated in corporation .Now i want to create a holding compony and move inter compony dividend. is it possible to open a holding compony now and handle this?
Great video as usual! Thanks for sharing In my opinion if your corp makes less than 500K then paying dividends makes sense and when your corp makes over 500K then you will benefit from paying yourself a salary
@kannan9994424451
Жыл бұрын
Hi, just a quick question. I am in to IT and I have got a contract from an US company recently. This contract is for 18 months max. If I earn 200k in one year thru sole proprietor, the taxes are going to be same as an individual taxes. If I earn 200k in one year thru corporation and paid that whole amount to myself as dividend, corporate taxes + income taxes on dividend = this value is going to be approx same as Sole proprietor? If this is the case then I don’t want to go thru all struggles of registering corp and stuff. I can simply go with sole proprietorship. Thanks for your help in answering this question.
hey my friend, I wonder.. is “temporary resident” counts to be a “Canadian resident” in terms of incorporating CCPC?
for one or two rental properties does it make sense to incorporate with holding and op company or nah?
@Taimur_SK
9 ай бұрын
Rental income inside corporation is considered passive income and does not qualify for small business deductions. So you will probably pay more taxes on rental income
which one is the part 1 video?
@JoeCollinsBC
8 ай бұрын
kzread.info/dash/bejne/hYFmyaaYe5ywcqQ.html :)
Hi ......Your videos are very informative for new accountants. I just wondering to join your accounting firm as junior accountant or bookkeeper. How can i join your team?
Hi Joe, I have a virtual, small business bookkeeping / consulting business in the US. I'm not sure if this would be conflict of interest for you, but I am looking to pay out for referrals that are sent my way for any United States viewers you might get. If you are interested in partnering up please let me know. Thank you!
man it's a good video and I love The Office but it's so annoying. The topic is already very difficult to understand and having those distractions is way too much. One a side note those are not consistent at all with the way you speak and present. Thanks for the video.
@AvalonAccounting
5 ай бұрын
Noted! Thanks for that feedback. We are getting better :)
Unnecessary clips. Very distracting. Your video itself is sufficient.
@AvalonAccounting
9 ай бұрын
Thanks for that feedback - we are trying to find the right balance, but I think you are right. More to come, thanks for your support!
Canadian tax corp and personal are crazy ! I’m about to sell my company cause the Canadian government is taking to much ! The money I managed to save in my corp tax in one year , the government wants it all and that will be the second time I pay corp tax in one year ! I’m sick of it ! Trudeau and the liberals have destoyed all hope for me !
@chasingmypinnacle
4 ай бұрын
In Canada, you get punished by the Government for being successful.
The goofy videos are cheapening your content. Breaks the focus of your audience. you're not a meme page. Good content otherwise
Ok enough with the jokes man it’s annoying
@AvalonAccounting
2 ай бұрын
Roger that! We have dialled it down 😬
Hello buddy, just a quick question. I am in to IT and I have got a contract from an US company recently. If I earn 200k in one year thru sole proprietor, the taxes are going to be same as an individual taxes. If I earn 200k in one year thru corporation and paid that whole amount to myself as dividend, corporate taxes + income taxes on dividend = this value is going to be approx same as Sole proprietor? If this is the case then I don’t want to go thru all struggles of registering corp and stuff. I can simply go with sole proprietorship. Thanks for your help in answering this question man.