Quote:
Originally Posted by I-Hate-Hulse
Would you need to withdraw the income earned from your "corporation" and pay it out as a salary? (Rather than holding it in the corporation) If so you'd lose much of the tax advantages from deferral of income, and much of the benefit of incorporating.
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If the corporation is your sole source of income, in most cases it's advantageous to only take $15,000 in salary and pay the rest as dividends.
I incorporated and saved $20,000 in taxes in one year compared to when I was an employee of a contracting company making the same amount.