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Dear Sir,
Is it true that if a self employed physician were to form a corporation, the tax rate is lower than personal income tax rate?
I understand from your previous responses that there does not seem to be any advantage to in-corporate except for liability reasons which could be covered by a good insurance policy.
Several physicians had advised us that they incorporate and that's the way to go because of the lower tax rate for a corporation.
Thanks for your patience and response.
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david ingram replies
A corporation may have a lower interim rate but when you want to "spend" the money, the tax rate ends up being slightly higher.
In addition, at the start if you incorporate, you cannot use your practice income to make your mortgage deductible, your sailboat loan deductible or any other interest you pay for personal items deductible.
goto www.centa.com and read the November 2001 newsletter from start to finsh (well miss page one if you are not working or doing business with the States).
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
108-100 Park Royal South
West Vancouver, BC, CANADA, V7T 1A2
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
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