Swift Accounting & Business Solutions Ltd.
2440 Kensington Rd NW, Calgary, AB T2N 3S1
(403) 999-2295 · mailbox@swiftltd.ca
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Should I Incorporate? Calculator (2026)
Enter your profit, the cash you need and the extra yearly cost. Get a plain read on whether a corporation is likely to pay off yet.
Enter your yearly business profit to get a read.
Our read
Part of this profit is above the small business limit, so it pays the general corporate rate. That part could be paid out as eligible dividends, which carry a larger tax credit. This tool treats every dividend as non-eligible, so the payout tax shown may be high.
Quebec personal tax is an estimate. Confirm it with an accountant before you decide.
For salary, dividends and the line-by-line tax, use the sole proprietorship vs corporation calculator.
Estimate based on 2026 rules. Not tax advice.
How it's calculated
- It runs the same comparison as the sole proprietorship vs corporation calculator, with dividends as the pay.
- Both options give you the same cash after personal tax. The deferral is the extra cash left in the corporation each year, compared with what a sole proprietor keeps after tax and CPP.
- Not yet means the deferral is below the extra yearly cost. Worth a closer look means it is up to three times that cost. Likely worth it means it is more than three times.
- The deferral is timing. When you pay the cash out, personal tax is due, so the table also shows what is left after that tax and the extra cost.
Frequently asked questions
When does incorporating make sense?
It tends to help when your profit is well above what you spend personally and you can leave the difference in the corporation. If you spend nearly all of your profit, the deferral is small and the extra cost usually outweighs it.
Is the deferral a real tax saving?
Only in part. Tax is postponed, not removed, because you pay personal tax when you take the cash out. The table shows what is left after that payout and after the extra yearly cost.
What does the verdict measure?
It compares the yearly deferral with the extra yearly cost of a corporation. Below the cost is Not yet. Up to three times the cost is Worth a closer look. Above that is Likely worth it. It is a screening guide, not advice.
What else should I weigh?
Liability protection, income splitting rules, the lifetime capital gains exemption on a future sale, and whether clients or contracts expect a corporation. None of that is in these numbers.
Can I switch from sole proprietor to corporation later?
Yes. You move the business into a new corporation, usually with a section 85 rollover so the transfer does not trigger tax. Plan it with an accountant before you file.
Talk to a Swift accountant
Send us your numbers and we will tell you whether a corporation fits your situation.