I work with multiple Realtors on their tax planning and reporting, and I often get the question ‘Should I incorporate?’
Incorporating can be a very powerful tool for small business owners to reduce current income taxes, and to build an efficient investment portfolio inside the corporation to support you long-term financial goals.
People often assume you have to be earning a lot of money for incorporating to save enough tax to make it worth the extra costs. While it’s true the tax savings should outweigh the costs, the answer of how much income it takes to make it worthwhile depends on each individual’s situation and cost of living. If you can split income to a lower-income spouse, the savings kick in much faster. And the lower your cost of living, the more tax you can save by incorporating.
Click the image or link above to download my presentation on the potential tax savings for a Real Estate Agent in BC.
The savings are even a little bit better for business owners who don’t have the additional licensing costs.