TTI develops Excel worksheets to help Canadian professionals solve tax challenges.

Please see our website, or contact us for more information. Were happ! to arrange a presentation or provide cloud access.
www.taxtemplates.ca " sales#taxtemplates.ca " $%&''%('$%&$()


Incorporation Savings Worksheet

This worksheet pro*ects the benefit of operating a business through a corporation vs. as a sole proprietorship,
based on the after%tax cash needs of an individual.

+our clients situation,

Corporate inputs
o Tax province -.
o Tax !ear ending /ec 0$, 1'$2
o Taxable income to corporation 0'','''
3ub*ect to 34/ 0'','''

5llocation inputs
o Target after%tax amount )','''
o 3ub*ect to CPP +es
o 3ub*ect to EI .o

Personal inputs
o Existing interest income 6,'''
o Existing eligible dividends 1,'''

Calculate the tax effects and tax deferral available b! incorporating the sole proprietorship.
Mr. A
Incorporation Savings Worksheet
Prepared on October 1, 2014
Oct 1, 2014
Revieed
Approved
Andre
!e"p#ate s$pport
Prepared
O% &0,000
'ec (1, 2014 )
*an 1, 2014 )
(00,000 +es
(00,000 %o
) %o
(00,000 )
)
(00,000 (00,000
) )
,2,42-. )
) )
) )
,140,(/&. )
0orporate ta1ab#e inco"e 123,1/- (00,000
,13,2&0. ,((,000.
) )
,3,03(. ,1(,200.
) )
) )
) ,112,312.
41cess ba#ance retained in corporation 1(2,/22 1(3,3//
(00,000 140,(/& 112,312
) ) )
,4,/21. ,2,42-. )
) ) )
,32,&&3. ,(0,244. ,14,-1/.
,4&,020. ,13,320. ,11,0&4.
) ) )
) ) )
&0,000 &0,000 &0,000
41cess ba#ance retained persona##5 /0,10(
22,31& 23,-/2
) ) )
4I pa5ab#e b5 corporation
%otes
%otes
,4I paid persona##5.
,6edera# persona# ta1es.
'ividend
!arget a7ter)ta1 net cash
Margina# corporate e1penses
Margina# so#e proprietor e1penses
!a1pa5er s$b8ect to 0PP
0orporate inp$ts
!a1 province
,Margina# corporate e1penses.
,0PP paid b5 corporation.
,4I paid b5 corporation.
!a1 5ear starting
!a1ab#e inco"e
S$b8ect to 6edera# S9' rate
S$b8ect to 6edera# :enera# rate
S$b8ect to provincia# S9' rate
S$b8ect to provincia# :enera# rate
S$""ar5 So#e proprietor Sa#ar5
,O% :enera# rate ) 11.2;.
,O% persona# ta1es.
A7ter)ta1 persona# inco"e
Margina# capita# avai#ab#e
,Socia# bene7its repa5"ent.
,6edera# :enera# rate ) 12.0;.
Res$#ts o7 ta1 de7erra#
!a1ab#e inco"e to corporation
,O% S9' rate ) 4.2;.
,Sa#ar5 paid.
,6edera# S9' rate ) 11.0;.
A##ocation and re#ated a"o$nts
,'ividends paid.
!a1ab#e inco"e to individ$a#
,0PP paid persona##5.
,Provincia# hea#th ta1.
!a1pa5er s$b8ect to 4I
Provincia# hea#th ta1 rate ,;.
So#e proprietor Sa#ar5 'ividend
,Other corporate ta1es.
,Margina# so#e proprietor e1penses.
Other ad8$st"ent
%et gain ,#oss. vs. so#e proprietor
!a1 5ear ending
!a1 !e"p#ates Inc.
2014)10)23
11<0&
Mr. A
Incorporation Savings Worksheet
Prepared on October 1, 2014
Oct 1, 2014
Revieed
Approved
Andre
!e"p#ate s$pport
Prepared
O% O% O%
'ec (1, 2014 'ec (1, 2014 'ec (1, 2014
) ) )
) ) )
) ) )
) ) )
) ) )
2,000 2,000 2,000
3-0 3-0 3-0
3,000 3,000 3,000
) ) )
) ) )
) ) )
) ) )
&,3-0 &,3-0 &,3-0
) ) )
) ) )
) ) )
) ) )
&,3-0 &,3-0 &,3-0
) ) )
&,3-0 &,3-0 &,3-0
+es +es +es
) ) )
) ) )
%o %o %o
) ) )
) ) )
) ) )
) ) )
) ) )
) ) )
4I credit ) b$siness
0a#c$#ation 2 ) 41isting a"o$nts
!a1pa5er
Incorporated ) sa#ar5
41isting a"o$nts
0a#c$#ation ( ) 41isting a"o$nts
!a1pa5er
Incorporated ) dividends
41isting a"o$nts
Other provincia# credits ) credit rate
0a#c$#ate 0PP
Interest and other invest"ent
41isting a"o$nts
=nincorporated b$siness
,RRSP ded$ction.
!a1ab#e inco"e ,#oss.
4I credit ) e"p#o5"ent
,Other ded$ctions.
4#igib#e donations "ade ) 32; #i"it
4#igib#e donations "ade ) no #i"it
,Socia# bene7its repa5"ent.
4"p#o5"ent
!ota# inco"e ,#oss.
,0PP on b$siness.
Other inco"e
%et b$siness inco"e ,#oss.
:ross)$p
%et inco"e ,#oss.
0PP credit ) b$siness
,%on)ta1ab#e portion.
0PP credit ) e"p#o5"ent
Other 7edera# credits ) credit rate
,Other ded$ctions.
Other than e#igib#e dividends
:ross)$p
%et capita# gains
0a#c$#ation 1 ) 41isting a"o$nts
4#igib#e dividends
!a1 5ear ending
!a1 province
!a1pa5er
4#igib#e pension
%a"e
O#d Age Sec$rit5
'escription
0a#c$#ate 4I
!a1 !e"p#ates Inc.
2014)10)23
11<0&
Mr. A
Incorporation Savings Worksheet
Prepared on October 1, 2014
Oct 1, 2014
Revieed
Approved
Andre
!e"p#ate s$pport
Prepared
O% O% O%
'ec (1, 2014 'ec (1, 2014 'ec (1, 2014
) 140,(/& )
) ) 112,312
) ) 20,/2/
) ) )
) ) )
(00,000 ) )
(00,000 140,(/& 1(-,240
) ) )
,2,42-. ) )
) ) )
) ) )
2&3,232 140,(/& 1(-,240
) ) )
2&3,232 140,(/& 1(-,240
+es +es +es
) 2,42- )
2,42- ) )
%o %o %o
) ) )
) ) )
) ) )
) ) )
) ) )
) ) )
4I credit ) b$siness
!a1 province
!a1 5ear ending
0a#c$#ation 2 ) Margina# a"o$nts 0a#c$#ation ( ) Margina# a"o$nts
%a"e !a1pa5er !a1pa5er !a1pa5er
'escription =nincorporated b$siness Incorporated ) sa#ar5 Incorporated ) dividends
Margina# a"o$nts Margina# a"o$nts
4#igib#e dividends
:ross)$p
Margina# a"o$nts
0PP credit ) b$siness
4I credit ) e"p#o5"ent
4"p#o5"ent
!ota# inco"e ,#oss.
%et b$siness inco"e ,#oss.
0a#c$#ation 1 ) Margina# a"o$nts
4#igib#e donations "ade ) no #i"it
4#igib#e donations "ade ) 32; #i"it
Other 7edera# credits ) credit rate
0a#c$#ate 0PP
0a#c$#ate 4I
!a1ab#e inco"e ,#oss.
Other than e#igib#e dividends
0PP credit ) e"p#o5"ent
Other provincia# credits ) credit rate
,Other ded$ctions.
,Socia# bene7its repa5"ent.
,0PP on b$siness.
%et inco"e ,#oss.
,Other ded$ctions.
:ross)$p
,RRSP ded$ction.
!a1 !e"p#ates Inc.
2014)10)23
11<0&
Mr. A
Incorporation Savings Worksheet
Prepared on October 1, 2014
Oct 1, 2014
Revieed
Approved
Andre
!e"p#ate s$pport
Prepared
'irect to shareho#der 'irect to shareho#der 'irect to shareho#der
(4,1&( 12.00; 2,12& (4,1&( 12.00; 2,12& (4,1&( 12.00; 2,12&
4(,&24 22.00; &,-30 4(,&24 22.00; &,-30 4(,&24 22.00; &,-30
4/,(-( 2-.00; 12,234 4/,(-( 2-.00; 12,234 4/,(-( 2-.00; 12,234
131,0-2 2&.00; 4&,-0& 1(,/3& 2&.00; 4,022 10,0(0 2&.00; 2,&0&
,0. ,0. ,0.
,1,(3/. 12.00; ,203. ,1,(3/. 12.00; ,203. ,1,(3/. 12.00; ,203.
) ) ) ,2,42-. 12.00; ,(-4. ) ) )
,2,42-. 12.00; ,(-4. ) ) ) ) ) )
) ) ) ) ) ) ) ) )
) ) ) ) ) ) ) ) )
) ) ) ,1,123. 12.00; ,1-&. ) ) )
) ) ) ) ) ) ) ) )
) ) )
) ) ) ) ) ) ,1(-,240. 11.02; ,12,042.
) ) ) ) ) ) ) ) )
,412. ,412. ,412.
) ) )
32,&&3 (0,244 14,-1/
(0,(-0 2.02; 1,2(( (0,(-0 2.02; 1,2(( (0,(-0 2.02; 1,2((
40,122 &.12; (,-31 40,122 &.12; (,-31 40,122 &.12; (,-31
-&,32/ 11.1-; 3,3/2 -&,32/ 11.1-; 3,3/2 --,02/ 11.1-; 3,(32
30,000 12.1-; /,212 14& 12.1-; 1/ ) ) )
/3,((2 1(.1-; 11,4&( ) ) ) ) ) )
) ) ) ) ) ) ) ) )
,0. ,0. ,0.
) ) ) ) ) ) ) ) )
) ) ) ,2,42-. 2.02; ,122. ) ) )
,2,42-. 2.02; ,122. ) ) ) ) ) )
) ) ) ) ) ) ) ) )
) ) ) ) ) ) ) ) )
) ) ) ) ) ) ) ) )
) ) )
) ) ) ) ) ) ,1(-,240. 4.20; ,-,144.
) ) ) ) ) ) ) ) )
,231. ,231. ,231.
) ) )
12,24& 4,(2- 4,1/4
) ) )
&00 320 320
4&,020 13,320 11,0&4
Margina# ta1 ca#c$#ations 7or !a1pa5er
6edera#
Provincia#
A"o$nt Rate !a1
A"o$nt Rate !a1
A"o$nt Rate !a1
Margina# ta1 ca#c$#ations 7or !a1pa5er
6edera#
A"o$nt Rate !a1
Provincia#
Margina# provincia# ta1es
,=n$sed credits 7ro" e1isting inco"e.
,'ividend credit ) e#igib#e.
,'onations and gi7ts.
S$rta1es
!a1 red$ction
>ea#th ta1
!a1
Margina# ta1 ca#c$#ations 7or !a1pa5er
,0PP credit ) b$siness.
9racket 4
9racket 2
,Other provincia# credits ) credit rate.
,0PP credit ) e"p#o5"ent.
9racket (
,Persona# a"o$nt.
9racket 1
,4I credit ) b$siness.
,4I credit ) b$siness.
Rate
6edera#
A"o$nt
Other ad8$st"ent
A#ternative "ini"$" ta1
,0PP credit ) e"p#o5"ent.
,4I credit ) e"p#o5"ent.
,'onations and gi7ts.
,Other 7edera# credits ) credit rate.
A#ternative "ini"$" ta1
9racket 2
9racket 4
,Persona# a"o$nt.
,'ividend credit ) other.
Rate
9racket -
9racket 1
,0PP credit ) b$siness.
,4I credit ) e"p#o5"ent.
,0anada e"p#o5"ent a"o$nt.
,'ividend credit ) other.
,=n$sed credits 7ro" e1isting inco"e.
9racket 2
,'ividend credit ) e#igib#e.
Margina# 7edera# ta1es
Other ad8$st"ent
!a1 A"o$nt
Provincia#
9racket (
!a1 !e"p#ates Inc.
2014)10)23
11<0&

So#e proprietor Sa#ar5 'ividend
Inco"e (00,000 (00,000 (00,000
0PP ? 4I @ 4,/21 4,/21 )
0orporate ta1es and e1penses @@ ) 24,(-4 4-,200
Persona# ta1es @@@ 122,04- 43,&-( 22,312
41cess ba#ance retained in corporation 1(2,/22 1(3,3//
41cess ba#ance retained persona##5 /0,10(
%et cash ,$p to target. &0,000 &0,000 &0,000
Incorporation Savings Worksheet ) %et 0ash Avai#ab#e
Mr. A ) Prepared on October 1, 2014
@ 0a#c$#ate 0PP< +es, 0a#c$#ate 4I< %o
@@ !a1 province< O%, !a1 5ear< *an 1, 2014 to 'ec (1, 2014,
!a1ab#e inco"e< (00,000 ,(00,000 at 6edera# S9' rate ? (00,000
at O% S9' rate.
@@@ !a1 province< O%, !a1 5ear ending< 'ec (1, 2014, 41isting
ta1ab#e inco"e< &,3-0
)
20,000
100,000
120,000
200,000
220,000
(00,000
(20,000
So#e proprietor Sa#ar5 'ividend
!a1 !e"p#ates Inc.
2014)10)23
11<0&