When you incorporate your business, you can take advantage of certain tax benefits that are not available to unincorporated businesses, such as capital gains exemptions AND Deferred the taxes.
When you are planning to sell the business. One big advantage of incorporating your business is the lower corporate tax rates. Many Strategies work here as whether to Sell the Shares OR to Sell the Assets.
Corporate Tax planning helps a business before, during & End of the Business. We help our clients in better understanding of choosing different accounting Methods or Valuation Methods as per client’s Business needs.
Some of Important decision such as: –
- Accounting Methods: – Cash Basis vs Accrual Basis
- Take advantage of CCA Rate (Maximize & Minimize)
- Inventory Valuation Methods: – FIFO (First in First Out), LIFO (Last in Fist Out or Weighted Average Method.
- Choice of Depreciation Methods: -Straight-line or Declining Method.
Equipment Purchases: – Rental vs Buy
Dividend vs Salary
How to Take advantage of Tax Deductions: – We help our Small Business Owners to understand better regarding the small things which results in Big Change in your Tax Savings. Such as if you are using your Home cum office, you are eligible to claim: –
Home Expenses which are directly related to your Business, such expenses include: –
- Office Expenses
- Meals & Entertainment
- Insurance
- Interest
- Supplies
- Legal, Accounting & Other Professional expenses
- Property Taxes
- Travel expenses
- Telephone & Utilities
- Fuel Costs
- CCA expenses
Any other expense which is directly related to generate the Business Income.
Many Other benefits are there to claim. It depends upon the corporate Structure & Proper Tax planning which differs as per clients’ business needs and Interest.