MONEY: It is Time to Incorporate

By Matt Paul

December 15, 2018

It is time to incorporate.

1952 was the last year that people and these legal entities, corporations, paid the same contributions into government coffers.

While we pay more and more and earn less and less comparatively, the sophisticated people at the top with the help of their accountants and lawyers are ensuring that their balance sheets stay healthy and prosperous while our towns, cities and provinces go cap in hand to the banks for a little or a lot more.

“Canadians paid $145 billion in income taxes while corporations paid $41 billion in 2015/2016.” last year reported the Toronto Star.

A new part of entrepreneurship is if you have an idea and want to move forward instead of just starting up and doing it, you need to consider incorporating right away, hiring a book keeper and paying a lawyer for registering your business. The small entrepreneur, just like the personal tax payer, are cultured to pay everyone one else before themselves. The administrators, accountants and lawyers rule the business world while the doers seem to pay increasingly more with less.

Good news though folks, you can hack your way out. Not really hack of course but why not set up a corporate entity and try a new idea or business venture on your own. You can invest your own personal income dollars into your corporation and pay less tax while improving the chances of earning more money if your business provides value to your customers.

Despite the costs of over $1000 that some lawyers will charge, you can incorporate Federal and in Ontario for about $230 with your corporate name search. Why not be the President or Officer of “Pay Less Tax Inc.” or “Eat Steak not Kraft Dinner Corp”?

I mean aside from filing an annual tax return and a corporate filing your hassle will be minimal for your efforts and if your idea takes off well there are people that can help you spend your money by doing your books or providing you legal advice.

It is time to stop waiting for entitlements and get up and go.

It is time to incorporate.


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