Tax

There are many factors to consider when determining what remuneration strategy is right for you. Please see the topics below for a discussion of the various factors that play into the discussion.

Every CCPC (Canadian Controlled Private Corporation) is allotted a $500,000 small business limit, in which the first 500k of taxable income is taxed at the more favorable small business rate of 11% (in Alberta). Any active business income in excess of this limit is taxed at the general rate of 23% (in Alberta).

There are advantages and disadvantages to incorporation depending on your situation. The following points will help you decide whether it makes sense to incorporate your business. Note that even if you do not incorporate right away, you can choose to incorporate and roll your business into a corporation in the future.