Incorporation’s main tax benefit is deferral, not elimination. A CCPC pays roughly 9% federal tax on retained business income — but if you withdraw that money to live on, personal tax applies on top and the advantage largely disappears. This guide is directional only — confirm with an accountant before deciding.
Your situation
This is profit — revenue minus expenses — not total revenue. The decision depends on what you keep, not what you bill.
How do you use your business earnings?
The single biggest factor. The tax deferral only helps if money stays inside the corporation.
What best describes your situation?
Is liability protection important to you?
A corporation can provide a legal separation between business debts and personal assets — a valid reason to incorporate even when the tax math is close.
Your directional result
It depends
It depends — here’s why
Reasoning based on your answers
Directional guidance only, based on 2026 rules. Not tax or legal advice. Incorporation involves legal, financial, and personal factors beyond what any questionnaire can capture — confirm the decision with an accountant and, if liability is a factor, a lawyer.