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I work full time as a System Admin with annual gross income of 95k. I just opened my immigration consulting business on the side with expected income for the first year less than 30K. I incurred at least 10k for the business expenses so far. Should I keep my business as sole proprietor or should I incorporate it?
Hello,
If you have no immediate need to use the cash generated from the business profits for personal purposes, then incorporate. In this manner, you will avoid payment of high personal tax on the business profit, and your corporation will only pay 12.5% corporate tax on the business profit.