Tax bulletin - incorporating your farm business
If you carry on a farm business, and have significant income, transferring the farm business to a corporation may provide some benefits as there are tax planning opportunities which become available to you by simply incorporating. By transferring your farm business to a corporation, you become the shareholder and employee of a separate taxable entity. If the corporation qualifies as a Small Business Corporation (SBC) or a Family Farm Corporation (FFC), other possibilities arise. One point to keep in mind is that although the tests are different, many FFCs will qualify as an SBC.
