There may be tax advantages that exist if your business
is operated by a corporation. It depends on the specific circumstances.
Some facts to consider include:
(1) whether the business profits are in excess
of an individuals personal financial needs;
(2) whether an individual wishes to share the business profits with
a spouse (commonly referred to as “income splitting”);
and
(3) whether the individual shareholder and the business would qualify
upon the sale of shares in the corporation for the lifetime capital
gains exemption relating to small business corporation shares.
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The general opinions expressed herein
are for information purposes only and are not to be relied on. Individuals
are encouraged to seek legal advice as it relates to their specific
fact scenario to ensure they are fully aware of their legal rights and
obligations.
