Comments on: How To Create An Alternative Source Of Income Part 5 http://www.thefinancialblogger.com/how-to-create-an-alternative-source-of-income-part-5/ This is where your finance takes place Thu, 09 Feb 2012 14:46:06 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: The Financial Blogger » Blog Archive » How To Create An Alternative Source Of Income Part 6 http://www.thefinancialblogger.com/how-to-create-an-alternative-source-of-income-part-5/comment-page-1/#comment-5201 The Financial Blogger » Blog Archive » How To Create An Alternative Source Of Income Part 6 Wed, 11 Mar 2009 00:14:37 +0000 http://www.thefinancialblogger.com/how-to-create-an-alternative-source-of-income-part-5/#comment-5201 [...] your project is well defined and that you have settled the proper structure, you are now ready to start making money (or start trying!). At first, I wanted to do 2 blogs; The [...] [...] your project is well defined and that you have settled the proper structure, you are now ready to start making money (or start trying!). At first, I wanted to do 2 blogs; The [...]

]]> By: Customers Revenge http://www.thefinancialblogger.com/how-to-create-an-alternative-source-of-income-part-5/comment-page-1/#comment-2246 Customers Revenge Wed, 09 Apr 2008 13:32:08 +0000 http://www.thefinancialblogger.com/how-to-create-an-alternative-source-of-income-part-5/#comment-2246 In Canada the corporation pays taxes, and the dividend recipient pays taxes. The total income is taxed about the same. The benefit is that the corporation (which is owned 100% by you) gets taxed lower and if you don't take the money out then you can grow your business with a smaller tax burden. I think incorporation is a huge admin burden for a business of one or two people and is mostly useful if you do need an entity seperate from the individual. Tax savings are minimal and the record keeping becomes more onerous for things like deducting your home office, computers, etc. The corporation has to own them or you have to account for the transfer of usage from the owner to the corporation. Of course, now your corporation can buy these assets that you might also use. Maybe the corporation needs a car, a computer, an "office" coffee maker, a phone line, etc :) In Canada the corporation pays taxes, and the dividend recipient pays taxes. The total income is taxed about the same. The benefit is that the corporation (which is owned 100% by you) gets taxed lower and if you don’t take the money out then you can grow your business with a smaller tax burden.

I think incorporation is a huge admin burden for a business of one or two people and is mostly useful if you do need an entity seperate from the individual. Tax savings are minimal and the record keeping becomes more onerous for things like deducting your home office, computers, etc. The corporation has to own them or you have to account for the transfer of usage from the owner to the corporation. Of course, now your corporation can buy these assets that you might also use. Maybe the corporation needs a car, a computer, an “office” coffee maker, a phone line, etc :)

]]> By: Million Dollar Journey http://www.thefinancialblogger.com/how-to-create-an-alternative-source-of-income-part-5/comment-page-1/#comment-2219 Million Dollar Journey Mon, 07 Apr 2008 13:49:56 +0000 http://www.thefinancialblogger.com/how-to-create-an-alternative-source-of-income-part-5/#comment-2219 Some other big advantages of a corp is limited liability along with the ability to pay the shareholders in the form of a tax efficient dividend. Some other big advantages of a corp is limited liability along with the ability to pay the shareholders in the form of a tax efficient dividend.

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