I have liked Poilievre for years but I don't like Lantsman as his right hand man/woman? I knew her a long time ago and can give every assurance she puts Israel first. I think the very image of her is some sort of diversity points bonus and I really wish that sort of thing didn't matter but as you say there is a cuck streak in Canadian conservative politics and just about all things Canadiana, from old hag Barb and her "partner" to BLM idiots to Toronto WASPs. There seems to be a strong fear in Canada to speak out about anything that matters
The Canada Political Thread
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Entrepreneurs can do just fine here. You can pay tax as low as 15% if you incorporate your business and with a good accountant you can pay no tax at all some years. Anyone can incorporate. Tradesmen can do it. Don't leave Canada on account of tax. Stick it to this POS government as an entrepreneur if you can run a business. You can't really win working for people, it will just make you sound defeatist and whiney which appears to have started happening.
I can do this as a tradesman, was thinking of starting next year but that would mean leaving the union and stopping pension benefits. Obviously there’s huge upsides such as paying less taxes, do you know much about how Canadians who do this can move money out of the country? I’m reading Nomad Capitalist’s book now, great so far.
It's possible to run a CCPC and not reside in Canada, however, the central "mind and management" must be in Canada. This is where an accountant or tax lawyer can assist. I could see it being hard to pull off as a tradesman though because you wouldn't really have transactions occuring in Canada.
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#2 in the red column is not factually correct. His mothers cuckhold has the airport named after him. His father has a buttsex neighborhood in San Francisco named after him
Apropos
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Apropos
It's easy to not realize just how long the so called 'great work' has been in motion. In 1917, Laurier would write to a friend:
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Cecil Rhodes, the Roundtable Movement and Eugenics
By a CRC Investigative Team The British East India Company, modeled on the older Levant Company of Venice, had been raping India since the early 1700s; but it wasn’t until 1763 that this Vene…
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It’s not that simple though. I am an entrepreneur but not incorporated.
15% tax gets your money into the corporate accout. Then you need to pay yourself a wage which gets taxed again at personal income rates.
I understand that your corporation can own a lot of assets which means you don’t have to pay yourself that money to buy them but what happens when you’re ready to stop working. Say I’ve padded the corporate account with 3 million and I’m ready to throw in the towel? Seems to me like I’d have to pay it all to myself and 45% to the government in income tax.
More likely you’d have to maintain the corporate structure and pay yourself a wage throughout retirement- which is being taxed again. Somewhat like an RRSP account.
I don’t know much about this… this is just how it’s looked to me at a glance.
I think I know what you mean about the 15% tax only 'getting your money into the corporate account' (retained earnings) but you are only taxed on profits and you can deduct your wages from your operating income to get to your net income. You can't get that being somebody's employee, where your taxes are immediately withheld. While you wait all year to get pennies back from the government, you lose out on interest income, investment opportunities etc and may have to borrow from someone else who will charge you interest (on the use of money). You also don't have to pay yourself a wage. Most guys sit around at tax time and pick a wage number that reduces their taxable income to a desired level and usually also pay a dividend. This is what you want -you do not want someone paying you a wage all year who is withholding a lot of it as they go along. In the corporate scenario you get to enjoy money without anyone withholding any of it all year long and then at the end there isn't much of a reckoning due to low tax rate and ways to reduce taxable income.
Another huge benefit of the corp is share capital. You can pay dividends to shareholders (including yourself, wife, etc) which also means you can raise capital by selling shares of your corporation to others. Right now all you have to sell is your services and maybe some assets. In a corp there's also something called "capital dividends" that are absolutely tax-free to the recipient shareholder. I'm sure you know that capital gains are 50% taxable - ever wonder what happens to the other 50%? In a small private cop (CCPC) It accumulates in a notional account called the CDA (Capital Dividends Account) where you can pay out dividends from time to time 100% tax free to yourself / another shareholder. The government hates capital dividends!
Regarding your sale question, when you sell your business there are a few strategies to minimize tax and there are things such as the LCGE (lifetime capital gains exemption) which is about $889,000 currently that can allow you to pull out a lot of tax free money from the corp. There also Capital Dividends (mentioned earlier). With careful planning you woudl keep most of the $3M. Don't want to sell your business? Corps are relatively easy to pass on and they also allow for you to take advantage of your kids' (even adult children) low incomes by way of an 'estate freeze' and you can freeze the value of your shares over time while the gains attribute to the kids who are taxed less.
The bottom line is that given the no-brainer benefits of incorporating I recommend that If you can sell your goods or services to different customers, you should incorporate. You might wonder why the government would allow you to escape so much tax? Simply because you would be hiring people and your employees would get no tax breaks at all. You get to make taxpayers for the government so in that regard they win.
Corporate tax is obviously complicated but well worth learning about as you can structure the rest of your career in a very enriching way. I see a lot of guys on here are frugal, planning types who are interested in educating themselves on new topics and this stuff would appeal to them. They seem like they wouldn't blow through cash which is another consideration - at first you need to keep money in the corporation for the whole structure to make sense (retained earnings will accumulate). Another kicker is it's not for employee types, it's for entrepreneurs. The small-business corporate tax rules in Canada have traditionally been very favourable and incentivizing for Canadians.
Sadly we're in a day where the Feds are cracking down on entrepreneurs as "rich people" because they hate small corporations and are attacking trusts for example (another great tool for preserving wealth for people who do not have to be wealthy).
Yet another reason to vote for Poilievre - he actually understands this stuff. An accountant I know chatted with Pierre once about the AII grind (basically Trudeau is reducing corporate taxpayers' access to the Small Business Deduction if they are hold passive investments) and he was impressed with Pierre's ability to talk tax about that complicated topic. His woud not be a government that bilks ordinary people.
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While I’m sure you know what you’re talking about and your points are valid, you have just reassured my opinion that incorporating my business isn’t really feasible. It’s necessary and advantageous for large businesses with large incomes but as a self employed carpenter it’s over my head, for now.
For a small level trade guy it may not have many advantages.
My brother has one, him and 2 other guys which did app programming. Made some decent money, and pay themselves in dividends.
The other big thing I didn't see mentioned is that a corp is a separate legal entity which can be sued etc. If you burn someones house down as Joe Blow contractor, you are responsible, and they could seize your house. If you are Joe Blow Inc, of which you own 100%, Joe Blow's assets are safe.
As was mentioned, 15% gets makes the money legally the corps. My brother takes dividends when he needs money, and those divis pretty well match his expenses, and the corp has hundreds of ks of corp money. Since my brother lives well below his means, his income has been like 35-40k for the last few years, which is giving him problems now that he's potentially looking for a mortgage to buy a house. He tried explaining to the bank that he has enough retained earnings to pay cash for a house even after the tax hit, but he'd prefer to take it out slowly. He said he can make his income whatever he wants, but the bank doesn't seem to care and can only go off last 2 years of tax returns.
Yes asset protection through the separate legal status is a main benefit I didn't mention.
The point I was trying to make is that a small fry business can incorporate to great benefit. You just have a lawyer file Articles ot Incorporation for a few thousand bucks and you're off. Of course you have compliance costs like filing an annual T2 but these are tax deductible.
The convenience store owner or garage mechanic can be a lot wealthier than you think with careful planning.
I don't know what's going on at your brother's bank. An incorporated dentist would be in the same situation: small salary paid to self if at all, maybe dividends, but high retained earnings - the bank would still look at the guy's financial statements not just his T1s. The dentist would get the mortgage. They might find your brother's business suspect and insist on a review or audit (costly to him and so he thought cost exceeded benefit?). Maybe the business's performance just hasn't been great or cash flow is weak or future cash flow projections are poor. I think there's more to his story.
I started off as a solo operation (self-employed contractor) making middling 5-figure annual profits.
Incorporation was one of the best things I ever did. You immediately get out of CPP and EI. Plus your accountant can divvy up the profits you take into personal and corporate tax brackets, allowing you to save on taxes. Even on that paltry sum of profits I started with, AFTER the expenses of incorporating, I still came out ahead.
You should get a decent accountant (one who wants to help you save money, not one who views themselves as simply a bookkeeper for the state), and get incorporated asap.
It costs a few thousand to do it. Then it is a small corporate "return" fee per year (at least in Alberta, where I am incorporated) to stay incorporated, plus an accountant will run you about $1000-$1500 per year to do both your corporate and personal returns (saving you time, if you were doing them yourself... time which you can immediately use to make more profit).
Do the math on what I am saying. It's absolutely worth it. And as a carpenter you can write-off a portion of tools, your work truck, your gas, if you have a home office you can write off a portion of that and your cell phone and internet. It's the last bastion that the "little guy", the middle class person, can use to stave off the horrible beast of the Canadian state.
Edit: you don't even need a lawyer to do articles of incorporation, you can get a registry office to do it. That's literally all you need: corporate registry and basic accountant. Costs are written above. Nothing else fancy is required. Keep your books in a spreadsheet and give that, along with bank and cc statements to your accountant at the start of tax season, along with any receipts related to the business. Easy peasy, lower overall tax rate, more money in your pocket.
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In 12 months you will be just like @TooFineAPoint , explaining to someone else how or why they should incorporate.
It's not at all "too complicated", now that you know where to start.
Working in small business taxes when I was young I learned a few things outside of the ins and outs of accounting.
(1) Business Owners who understand their books and "accounting" make money. Those who are financially illiterate (no offense), are left to mediocrity financially speaking. Their work might be good, but they weren't from what I saw, as financially successful.
(2) Small business owners can build great businesses. Doctors eat your heart out. A guy with a plumbing company, some financial acumen, and who can manage a couple crews can make great money.
If you're in business for life, you should learn about business. It's in your interest. Accounting, Sales, Law, you have to be a jack of all trades. Everything you learn is an asset, knowledge is power.
Also , get a seperate bank card for your business. Buy all your business expenses and put all your sales into that same bank account. Everything is kept seperate and counted that way. The bank is the "control". Everything gets counted as it runs through the bank.
Learning QuickBooks or Sage is another worthwhile skill and takes very little time. You can see how you're doing at any point in time and you are kept more on top of things with suppliers, customers etc. Not to mention you can cut out a bookkeeper and reduce your accounting costs so your accountant will be doing less at year-end. They'll adjust for the stuff you missed or did incorrectly but at least they're not working from your bank and credit card statements which takes longer.
I know tradesmen (electricians) who started off with the right mentality and are living in mansions now, with a few other properties, with hot wives etc and they're as happy as can be.
I know tradesmen (electricians) who started off with the right mentality and are living in mansions now, with a few other properties, with hot wives etc and they're as happy as can be.
True you don't need a lawyer to file Articles but they'll do it and also discuss share structure with you and be on top of you for annual compliance obligations like keeping proper minutes etc if only for the first year. It will all be done properly. As long as the cost is under $3000 and it's usually around $2000 then your corporation can expense that cost (if above $3000 the cost is capitalized meaning it's an asset with a depreciation expense every year until cost is eliminated)
This is how we got where we are today:
Canada Beyond 150
While regular Canadians are just trying to get along and do their own thing, the bureaucrat-class are operating things like this:
What were some of those themes? I'm glad you asked. One of them was "Capital and Debt ":
Saying it will 'allow you to participate in the access economy' sounds so much nicer than "you will own nothing and you will be happy."
Spoiler alert: don't read any further if you don't want to enter a rage spiral.
According to the site, these psychopaths were assembled to cook up this stuff back in 2017. I think about how blissfully unaware I was back then, and reflect on how much they've been doing behind the scenes in the 6 years since.
Canada Beyond 150
While regular Canadians are just trying to get along and do their own thing, the bureaucrat-class are operating things like this:
What were some of those themes? I'm glad you asked. One of them was "Capital and Debt ":
Saying it will 'allow you to participate in the access economy' sounds so much nicer than "you will own nothing and you will be happy."
Spoiler alert: don't read any further if you don't want to enter a rage spiral.
According to the site, these psychopaths were assembled to cook up this stuff back in 2017. I think about how blissfully unaware I was back then, and reflect on how much they've been doing behind the scenes in the 6 years since.