Cross Border Tax Consultants

Should I incorporate my small business in Canada? When should I incorporate? I was told I could save tax if I incorporate – is this statement holds true? What are the advantages & disadvantages of incorporating your business? Benefits of incorporating your small business: Let’s start with a list of the pros of incorporating your small business in Canada. • Limited liability – Running your business through a corporation gives a safety layer against personal liability. It makes it more challenging for someone to go after your personal assets if the business defaults on its debts. • Tax savings & deferral – In some circumstances, corporations have a lower tax rate in comparison to individuals. Running your business via a corporation in place of a proprietorship can aid to defer and save taxes. • Estate planning – A corporation is a detached entity to you, so it persists to live on irrespective of what happens to you. This can be useful when thinking about transferring your...

Canada is a top immigration destination for people across the world; both from developing and developed countries. There are many positive sides to immigrating to Canada. One of the areas where all the new immigrants dread while coming to Canada is “Income Taxes”! Yes, individual income taxes or personal income taxes, are extremely high in Canada as compared to the neighbouring United States. This is even higher for those coming from the middle eastern countries with no income taxes at all. So if you are moving from a country where there are no income taxes such as the United Arab Emirates or other gulf countries, you must prepare yourself to start paying income taxes. You can take a couple of steps before immigrating to Canada such as: 1. Establish your date of change of residency. Tax residency and immigration residency are two different things. 2. Try to realize Capital gains before the date of immigration. If not, arrange for the fair market value of all of your assets as of...