Is the World Going IP?
I have a question about your article "Is the World Going IP." Under the heading "Dateline -- Toronto," you mention Canadian independent professionals can get a 20 percent tax rate if they're incorporated instead of the 50 percent tax rate individual taxpayers are charged. This is true if the "corporation" has the income -- but how do you avoid paying a huge tax on your "salary" when you take money out of the corporation's bank account? It's great when you have to buy supplies for the business or pay bills, but as far as getting the cash out for personal use... well, I haven't been able to figure that one out yet. Any idea how it's done?
Actually, we don't know the best way to approach this situation in Canada. Instead, we're putting your question to our readers. If you have any advice for Bonni, let us know, and we'll post it here.