Advantages of a professional business corporation? | ScriptaLegal
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Frequently asked questions > Company > Entrepreneurs and independent workers > What are the advantages of a professionals' business corporation?

What are the advantages of a professionals' business corporation?

The incorporation of a business corporation allows the professional to benefit from several tax benefits, among which in particular:

  • A lower tax rate than the one of individuals;
  • In some cases, the professional will be able to benefit from the deduction of capital gain in the event of the sale of shares of his business corporation;
  • The method of remuneration of the professional also becomes more flexible, whether it is about salary or dividend which will be evaluated according to his needs;
  • The choice of the end of fiscal year of the business corporation, contrary to the individual whose fiscal year ends mandatorily on December 31st;
  • The detention of the automobile and the life insurance policies by the business corporation is also possible;
  • The establishment of an individual retirement plan;
  • The reduction without tax of the fiscal cost of certain assets transferred by the professional to the business corporation, in particular an immovable property, equipment and goodwill.

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