If you own a business you may have wondered:Historically the income tax system in Canada has benefited incorporated Canadian small businesses.Although the income and deduction calculations are almost identical to an unincorporated business, the major differences are in the corporate taxation structure and tax planning opportunities.When developing the tax plan for your business, you and your advisor should look for opportunities in the following areas:
Income splitting with family members;
Tax deferral to the future;
Estate planning for you and your family;
Utilization of the capital gains exemption; and
Planning your retirement, including disposing of your business.
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