Every Strong Business Starts With A Strong Transition

For anyone making the transition to self-employment, deciding whether to incorporate is a major decision. From a tax perspective, you should generally start thinking about incorporating when you have substantial funds that will be reinvested in the business annually and not need to be drawn out for personal use. A corporation enjoys lower tax rates for funds left inside the corporation. While some try to determine what level of income justifies incorporation, viable cases can be made for and against, whether your net income is $75,000 or $200,000. Sometimes people think there's a magic number, but there really isn't. This is a personal decision that has a unique impact on every business.