Incorporation calculator
Is incorporating worth it yet
Incorporating pays when the tax deferred on profit left in the company is worth more than the cost of running it. Enter your numbers to see which side wins.
2026 figures
Before any tax and before paying yourself.
Only profit left in the company earns a deferral.
Combined federal and Alberta, rounded. Pick the band your income falls in.
Estimate, 2026
On these numbers the deferral covers the cost. Worth a conversation about structure.
Cost assumes a corporate year end and T2 from $2,500 plus an annual GST return from $175, taken from the published fee schedule.
What this does not cover. A deferral is not a saving. Tax is paid later when the money comes out as salary or dividends, so the benefit is the use of the money in the meantime. This ignores limited liability, which is often the better reason to incorporate, and it ignores TOSI, provincial variation and your own credits. This is an estimate for planning, not advice for your situation and not a filing.
At what profit does incorporating make sense?
There is no single number. It depends on how much profit is left in the company after you have drawn what you need to live on, because only the retained amount earns the deferral. A business earning well but drawing all of it out gains little. The calculation also ignores limited liability, which is often the stronger reason to incorporate.
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