🧍 Sole proprietor: your net business income is taxed at your personal marginal rate — in Ontario, that climbs all the way to 53.53% at the top end. Simple, no separate return.
🏢 Corporation: it's a separate taxpayer. An eligible Ontario small business pays just ~11–12% combined on the first $500,000 of active business income — money can stay inside and grow.
💰 Rule of thumb: once profits are comfortably above what you need to live on, incorporation can unlock serious tax deferral.
📌 General info only — every situation is different.