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Old 11-08-2007, 03:49 PM   #10
I-Hate-Hulse
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Quote:
Originally Posted by hulkrogan View Post
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.
Very true - the optimal dividend / salary mix is probably something worth discussing with a qualified accountant though, as it'll vary from situation to situation.
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