Simulator · 2 minutes · no account
Should I incorporate?
Four answers are enough. The simulator compares sole proprietorship and corporation with simplified tax rules, then tells you if it’s time, and why.
Your next steps
A corporation is recommended. In order: secure the name, choose the jurisdiction, then plan your pay.
- Check the nameRegistry fees ($397 Quebec, $200 federal) aren’t refunded if the name is refused. Check it first.Name checker →
- Choose the jurisdictionFederal if you sell in several provinces; Quebec if your directors live outside Canada.Fee comparison →
- Plan your paySalary, dividend or a mix based on RRSP, QPIP and mortgage goals.Salary or dividend →
How the simulator decides
Logic reviewed by Sophie Lemieux, CPA. It aims for the right decision, not dollar precision.
Parameters verified on [date] · Sources: CRA, Revenu Québec, provincial finance ministriesPersonal tax by bracket
Four rounded combined federal + provincial brackets (27%, 37%, 45%, 50%). No personal credits or payroll contributions.simplified
Four rounded combined federal + provincial brackets (27%, 37%, 45%, 50%). No personal credits or payroll contributions.simplified
Small-business rate
First $500,000 of active income taxed at the selected province’s reduced rate.11% – 12.2%
First $500,000 of active income taxed at the selected province’s reduced rate.11% – 12.2%
Personal needs
Without full withdrawal, we assume you take 60% of profit (minimum $60,000) and leave the rest in the company.assumption
Without full withdrawal, we assume you take 60% of profit (minimum $60,000) and leave the rest in the company.assumption
Compliance costs
Accountant, annual return, minute book: $1,500/year assumed. Lower with the Compliance plan ($29/month).$1,500/yr
Accountant, annual return, minute book: $1,500/year assumed. Lower with the Compliance plan ($29/month).$1,500/yr
FAQ
Does it include QPP/CPP and QPIP?
No. As a sole proprietor you contribute on profits; in a corporation, only on salary paid. That’s covered in the Salary or dividend tool.
What about limited liability?
The simulator doesn’t price it. If your work carries litigation or debt risk, that argues for a corporation regardless of tax.
A client requires me to incorporate: should I wait?
No. If a contract depends on it, its revenue changes the math. Rerun the simulation with that income.
Can I send this to my accountant?
Yes: with a free account, export a PDF with detailed assumptions, or share the simulation link.