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Reason’s why you should Incorporate


1. SEPARATE LEGAL ENTITY (Legally Separate Entity)

A corporation is a separate legal entity that is legally at arms length from the director and/or owner of that legal entity. A corporation is a legally accepted form of deflecting income from the individual to the separate legal entity known as a corporation. This allows one to rearrange their tax affairs into any parameter that one would want to create.

2. LIMITED LIABILITY

A corporation has limited liability which means that a corporation is limited to its responsibility or legal liability to any other separate legal entities including individual persons. A corporation is not held legally lliable for it's debts. A corporation cannot be sued beyond its assets and even then a corporation has the right to creditor protection or shareholders demand of repayment of their investments.

3. CORPORATION CARRY-ON (Eternal Carry On)

A corporation has eternal life therefore it can never pay estate or death taxes unlike an individual who must pay both, at the time of death of a tax payer. Some Corporations have been around for 100's of years or more.

4. INCOME CONTROL

A corporation is entitled to issue it's director any amount of salary or bonuses that the director sees fit to declare, regardless of the corporations success or failure.

5. CAPITAL GAIN EXEMPTION

A corporation allows or grants a director a $750,000 capital gain lifetime exemption. Basically this means a director can sell his business venture for a profit of $750,000 and be exempt from tax.

6. DIVIDEND TAX CREDIT - 22%

A corporation is allowed to issue from retained earnings any amount of dividends to it's shareholders. Any dividend issued to a shareholder grants that shareholder to be able to claim a dividend tax credit equal to the deemed tax payable on that dividend amount, because the dividend tax credit is equal to 33% of the amount of the dividend issued.

7. INCOME SPLITTING

A corporation allows it's director shareholder to income split any amount deemed appropriate with their spouse, children, parents, relatives, friends, or any other person. An example of this would be if a corporation makes $200,000 it can be split between 2 parents and their 2 children so they each made $50,000.

8. LOSS CARRY FORWARD FOR ETERNITY OR CARRY BACKWARD FOR 7 YEARS

A corporation has the ability to lawfully carry or apply a loss backwards in time 7 years and forward for eternity.

9. RIGHT TO SELL OPERATING LOSS TO ANOTHER CORPORATE ENTITY

A corporation can transfer or sell itself or it's recorded paper losses to any other legal CORPORATE entity. A person does not have the right to sell or transfer losses.

10. MULTIPLE CORPORATION

A corporation can own any number of separate legal corporate entities. By having multiple corporations this allows for a multitude of legal strategies in designing and executing the flow of profit and ultimately the amount of taxation that one or a corporate entity is liable for.

11. YEAR END DATE ESTABLISHING AND FILING

A corporation can legally choose any year end date it desires or needs, where a person is obligated to Dec.31.

12. CORPORATE PERSONAL BENEFIT EXPENSES

A corporation is allowed to deduct expenses that an individual is not allowed to deduct. Therefore a director may be allowed to deduct all expenses incurred to maintain themselves.

13. RIGHT TO BORROW OR LEND LOANS

A corporation may lend to it's shareholder an amount of money in a form of a loan that is contracted by a reasonable rate of interest without being liable for taxes.

14. SMALL BUSINESS TAX DEDUCTION REDUCTION

A corporation is allowed a small business tax deduction on the 1st $250,000 of net income at a rate of 11%.

15. RAISING CAPITAL EQUITY OR FUNDS

A corporation has an easier time raising capital due to perception by selling shares to share holders. This allows the corporation to be able to grow and develop easier. The advantage of this is that the corporation does not repay the capital investment to the shareholder nor incur an interest cost.

16. STEALTH OWNERSHIP AND REMOTE DIRECTOR CONTROL

A corporation allows anynonominity so that no one can ascertain who the true owners of a corporate venture truely are. A corporation can operate as a numbered company or as a trade name that may be registered. This also allows franchising out the trade name that has been registered.

17. INTELLECTUAL PROPERTY DEVELOPMENT

Once one has a multitude of corporations one is now free to develop any intellectual or real property to it's fullest extent without the fear of being taxed. This saved taxed money can then be put into use to expand or enrich the operations and endeavours of the director/shareholder. The director/shareholder now has the ability to per-serve to the fullest extent their profits and their wealth.

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