Legal structure for Canadian day trader with 1 million income a year?

[tonyzhou]

What is the best legal structure for a Canadian day trader with 1 million income a year? Any firms can help to evaluate the situation and set up the entities?

 

[wartrace]

I would think if you were earning a million per year your CPA could advise you on this issue. Instead you ask on an internet forum.

 

[tonyzhou]

Hmm, I paid $1000 for my last years tax filing with a local accounting firm. My feeling is that they are not the expert in the area, unfortunately.

 

[tonyzhou]

Reading other useful posts here. Any one can suggest a good Canadian accountant in this area?

 

[gkishot]

Best legal structure for what purpose?

 

[tonyzhou]

Best legal structure for what purpose?

For tax purposes. Well, charging a tax rate at 50% on a million income is definitely the worst scenario. Reading the forums now and people suggests to set up corporations, and it seems that tax can be deferred in this way like RRSP.

 

[gkishot]

For tax purposes. Well, charging a tax rate at 50% on a million income is definitely the worst scenario. Reading the forums now and people suggests to set up corporations, and it seems that tax can be deferred in this way like RRSP.

Deferred? Yes. Lowered? I don't think so. Unless corporate tax is much lower than individual tax.

 

[tonyzhou]

Deferred? Yes. Lowered? I don't think so. Unless corporate tax is much lower than individual tax.

You probably is right. I am not expert as I am doing my own research here. I think the tax system is set up in such a way that you pay the same tax in corporation or in individual. If corporate rate is less than individual rate, I think the difference is the deferred.

BTW, last year, my accountant is saying that there is some new rules in the area that setting up a corporation is not ideal. But I don't understand that.

 

[3acor]

Just declare yourself a non resident

 

[nooby_mcnoob]

Move to cayman islands