when is it time to incorporate your business?
TRANSCRIPT
When’s the right time to incorporate your business?
By Matthew Lekushoff, CIMA, Raymond James Ltd.
Choosing To Incorporate
Incorporating a business for entrepreneurs and doctors may feel like embarking on
unchartered territory
It can drastically improve a business, but can be detrimental if it isn’t the right time
So remember, Timing is everything!
Source: kerrycallen.blogspot.ca
Consider incorporation if…
Your company has around $100,000 in gross earnings and you anticipate it will
continue to grow
You feel you are paying too much in personal taxes
To income split with your spouse
You anticipate being able to save at least $40,000 a year and are looking for a tax preferred way to do it other than RRSPs
If the previous factors apply, and…You would like an alternative way to fund your children's educationYou would like an alternative way to fund your retirement
The Drawbacks
A professional incorporation will incur legal fees, costing between $750 and $3,500
They are lawyers, after all…
You will also be required to fill out a T2 for corporate returns
And you will need to file an annual corporate financial statement, which can
cost between $1,500 and $2,500
You will be required to complete annual corporate tax returns and have annual
financial statements drafted by an accountant. This can cost between
$1,000 and $2,500
The Cheat Sheet
I like to provide my clients with an Incorporation Cheat Sheet to
break it down further
It can be accessed here: Matthew’s Cheat Sheet
These points are some guidelines to consider
when embarking on the journey towards incorporation
If you wish to find out more, feel free to contact me
Thank you!
Presented By:Matthew Lekushoff, CIMAFinancial Advisor at Raymond James, Ltd.Phone: 416-777-6368Email: [email protected]: www.matthewlekushoff.ca
This has been prepared by Matthew Lekushoff and expresses the opinions of the authors and not necessarily those of Raymond James Ltd. (RJL). Statistics, factual data and other information are from sources RJL believes to be reliable but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. This is intended for distribution only in those
jurisdictions where RJL and the author are registered. Securities-related products and services are offered through Raymond James Ltd., Member-Canadian Investor Protection Fund. Insurance products and services products and services are offered through Raymond James Financial Planning Ltd.,
which is not a Member-Canadian Investor Protection Fund.