Originally Posted by RawAlex

let me add some stuff here.

First off, one of the best things about a corporation is that it can be a buffer between you and higher tax rates. if you bring in, say, $200k a year, your personal tax rate might run 35-50% on that. Corporately, you would be looking at a much lower rate, probably about 15%-18%. If you have money, you can make money. If the government has it, you make fuck all.

Second, your salary is an expense to the company. Every dollar of salary you take is a dollar less taxable income for the company. So you can take some salary yourself, but not enough to make your taxes go crazy, while at the same time lowering the net of the company.

Second thing is that if you are incorporated, you can pay dividends. Dividends are taxed personally at a much lower rate than regular income, and there is a level (don't remember the number it moves) that is tax free entirely.

If you have taken the step to incorporate, get a good accountant and they will save you thousands of dollars in taxes.