Professional Tax Specialists
A business that provides professional services to the public may be entitled to establish a professional corporation. There are many benefits to incorporating your professional services and our tax specialists at Bobot & Yurichuk Chartered Accountants can offer all the services required for your corporation.
The laws regarding incorporation of a professional service corporation can be quite complex. For this reason it is crucial that you consult with our team of expert tax specialists in Toronto before determining the best course of action for you and your business. We will work to advise you with the best solution for timing, setup, structure and maintenance of your corporation.
Our tax specialists in Toronto will handle every step of the process including filing the articles of incorporation, bookkeeping, preparing financial statements and preparing and filing all the necessary tax documents and the corporate income tax return.
We understand that most professionals may not want to use a good chunk of their valuable time and resources on all the accounting, legal and tax issues that arise and that must be considered to run their services and business. Our goal at Bobot & Yurichuk is to handle all these issues so you can focus on what you do best.
Incorporating your services will also allow you to benefit from favourable tax rates for professional corporations in Ontario. By merely incorporating your business you can save thousands of dollars every year by lowering the overall income taxes you pay. An individual with professional earning income in the highest tax bracket pays nearly 50% of their income in taxes. On the other hand, that same money earned inside of your professional corporation is taxed at 15.5%.
Other Tax Benefits
In addition to the tax benefits received by incorporating your services, there is also more flexibility in how you pay yourself. A sole proprietorship gets taxed on earnings right when it is received whereas a professional corporation has the choice to defer taxes by leaving money inside the corporation until it is need it or until it is more beneficial from a tax perspective. Other methods of receiving favourable tax treatment is by employing a family member and paying them regular salary or paying dividends to yourself as a shareholder.
There are many tax saving opportunities available if a professional corporation is properly setup. Consult our team of tax specialists in Toronto to establish a corporation that meets all your needs. We will find the best methods to minimize taxes for you.