Should I hire myself if I've incorporated my business?

Question

I run a clothing shop in Halifax, Canada.

I've incorporated my business. Should I hire myself? What are the benefits and disadvantages?

Answer 1

First of all, if you incorporated your business, I assume you are the sole owner of the corporation at this point. You technically don't need to "hire" yourself. However two things come to mind. Money that the corp makes and money that you get from the corp (money you make) are two separate things and be aware that you can not use the corp money as it were your own (even though technically it is). Money that is made by the corp gets taxed and any money you get paid by the corp gets taxed again as a payout to you.

This is called double taxation. While the corp can do a tax write off to some extent on money or dividends it pays out to you, it is almost not worth it. However in some parts of canada, I believe you can actually pay an "employee" (in this case you) up to $33,000 a year without having to pay the double taxation on it. That is essentially tax free. Look up more info on this and consult an accountant for the best advice on how you should run your business.

Although I'd honestly wish you had done so before you incorporated your business because often times, people do it without realizing whether or not their business needs it. In most cases, probably not.

Answer 2

hire urself pl0x