Tax Benefits Of Incorporating Your Business
Posted On: 12/12/25 - 0

Are you starting to wonder if it is time to incorporate your business? Do you know what the tax benefits of incorporating your business are? Here are some things to consider before you change the structure of your company.

Corporate Tax Rates

Generally, Alberta corporate tax rates are quite low. Especially for the income that is kept inside the company instead of being paid out as a personal wage . Many Edmonton entrepreneurs choose to reinvest the cash into their business. This provides a tax defferal versus earning the income personally.

Small Business Tax Deduction

If you own a Canadian controlled private corporation, your business would qualify for a reduced tax rate. This applies to the first $500,000 of your active business income.

Tax Efficiencies of A Corporation

As a business owner you can choose on how you get compensated. There is a salary, there are dividends or bonus pay out options. These options allow for flexibility in order to maximize the most tax efficient compensation for you each year.

If you are thinking about incorporating your business, be aware of the complexity to do so. Consult with our corporate tax professional to ensure it is the right move for you and your business. To set up a no charge tax consultation, call our office today.

12203-107 Avenue.
Edmonton, Alberta.
T5M 1Y9

Call us:
780.482.7297