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Robert_Gauvreau's avatar
Robert_Gauvreau
Contributor 3
22 days ago

🌟Ask An Expert: Time to Save $—The Ultimate Home Service Tax Plan with Robert Gauvreau🌟

Did you know that 92% of business owners pay more tax than they’re legally required to? I’m Robert Gauvreau, founder and CEO of Gauvreau | Accounting, Tax, Law & Advisory, and I’m here to help you ...
JeffCJ's avatar
JeffCJ
Contributor 2

I had a similar question, and was in addition wondering if it makes a difference what kind of business structure you have? E.g. does this work as a sole proprietorship?

Robert_Gauvreau's avatar
Robert_Gauvreau
Contributor 3
19 days ago

JeffCJ, yes, it 100% only works if the business is paying tax as a corporation.  A sole proprietorship will not work as you are paying tax on the income of the business (not on how much you take out) in a proprietorship.  A corporation has a reduced rate of tax on business income, and there is a supplementary tax on withdrawing the funds from the corporation.  If you leave it in the corporation, you won't have to pay the supplementary tax.