> Corporate earnings are taxed. Your income is also taxed. That's double tax in my mind. No, you are incorrect. There are basically two ways to draw money fro

> Corporate earnings are taxed. Your income is also taxed. That's double tax in my mind. No, you are incorrect. There are basically two ways to draw money from a corporation that you own in Canada: through payroll, or through dividends. If you draw it through payroll, that money never sees any taxes through the corporation. The only tax burden in the payroll scenario is your personal income tax (same as any other employment income). If you draw it through dividends, the corporation will pay some tax and you personally will also pay some. However, your personal tax on dividends is less than your personal tax on employment income--the total tax burden is quite similar to what you would pay in taxes if you drew it through payroll, but there can advantages/disadvantages depending on corporate/personal circumstances. Source: Canadian business owner.