Proccounting Inc

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Does incorporating your business provide additional write-offs?

It is a common misconception that incorporation results in substantial tax savings and additional write-offs. In reality, it might not be true.

One major tax advantage of incorporation comes from the tax deferral because of the lower rate of corporation taxes. If the business is not profitable, or it is profitable but it cannot afford to leave any of its profits in the corporation, the tax advantage to incorporation is minimized.

 

 

 

 

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