Often corporations distribute to shareholders using dividends. There's a dividend tax credit that offsets the corporate tax income (more or less). More broadly,

Often corporations distribute to shareholders using dividends. There's a dividend tax credit that offsets the corporate tax income (more or less). More broadly, there's a principle in Canadian tax called "integration" where the tax authority tries to make it so that it doesn't matter whether you earn the money through a corporation or personally. More information on integration: http://www.ey.com/ca/en/services/tax/taxmatters-july2013-integration-update http://www.ey.com/ca/en/services/tax/taxmatters-july2013-int... So, no, generally there's not "double tax". But yes, there is administrative overhead that could exceed the taxes if you're not making much money.