There Are Several Benefits to Incorporating a Business

question 2

Multiple Choice

There are several benefits to incorporating a business.Some of those benefits are:

• A) Lower tax rates are often recognized; the shareholder may receive compensation; and the corporation offers preferable tax rates on the business' investment income.
• B) The shareholder may choose when they will receive dividend income from the corporation; a capital gains deduction may be available if conditions are met when shares are transferred to the shareholder's children; and active business income under $500,000 is eligible for a lower tax rate.
• C) There is greater flexibility to bring family members on board as owners; non-taxable benefits may be provided to the shareholder; and dividend distributions are deductible for tax purposes.
• D) A tax deferral is available if the shareholder requires the corporation's profits for personal use in the year; the shareholder may participate in a registered pension plan through the corporation; and dividend payments may be deferred until after a shareholder has retired.

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Definitions:

Fellowship

A community of people who share common interests, goals, or experiences, often associated with academic institutions or professional fields to support mutual learning and growth.

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A neurotransmitter that affects mood, appetite, and sleep, and is commonly linked to feelings of well-being and happiness.

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