Bob GauvreauAsk Bob Gauvreau Questions Based On His Training

The Importance of Correct Business Structures for Tax Minimization #shorts #businesstax #taxsaving

13 Feb 2024 · 1 min

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A short video by Bob Gauvreau advising that choosing the correct business structure is the most important proactive step for tax minimization. He contrasts sole proprietorships—where business income is taxed on personal returns at rates he cites as up to ~50%—with corporate structures that can access lower small-business tax rates (he cites ~12–15% in Canada and ~20% for U.S. C corporations).

Questions this video answers

Upwards of 50%.

Around 12% to 15%.

Around 20%.

Chapters

The greatest tax minimization and proactive plan you can put in place is making sure your business structure is correct for you. We have a sole proprietorship which essentially operates a business where I am the business and I file the business taxes on my personal tax return. Those tax rates across North America can get upwards of 50% on that income. That's not a great outcome for us. When we look at the small business taxes and using a corporate structure. In Canada you're at somewhere around 12 to 15. In the United States with a C corporation you're looking at somewhere around 20.