Quote:
Originally Posted by hulkrogan
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.
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Also depends if you want RRSP deductions or not. Dividends do not count as earned income for RRSP purposes.
Over all Dividends give you the smallest tax bill as you save about 2% plus no CPP