It makes sense to pay off your debts as quickly as possible before you incorporate

February 21, 2022

If you can't sleep at night because of your debt we can help you use your corporation to minimize taxes while paying it down quickly. However, your corporation is taxed at 12% on the first $500,000 of taxable billings (depending on province). Drawing from the corporation to pay extra on your debt will cost you 48% in taxes... even more if you have not incorporated.

Lowering your personal tax rate more than the cost of interest on student debt or your mortgage (2-3%) by paying your debt over time will put you in the money!