Corporate Tax Planning in Hamilton
We help Hamilton businesses pay less corporate tax. SBD optimization, salary-dividend strategy, holdco structuring, SR&ED credits for steel fabricators and manufacturers, Immediate Expensing on heavy equipment, CRA audit support FREE. Office at 70 Starling Dr. Fixed flat fee from $400. No hourly billing. 900+ five-star reviews.
We Help Hamilton Businesses Keep More of What They Earn
We work with Hamilton business owners across every industry: steel fabricators and metal manufacturers in the industrial north end, healthcare professionals at Hamilton Health Sciences and McMaster University Medical Centre, construction companies building across the Hamilton Mountain and Ancaster, food and beverage producers along the Barton Street corridor, tech startups connected to McMaster Innovation Park and real estate investors throughout Hamilton, Burlington, Stoney Creek, Dundas and Grimsby. Every client gets a written tax plan that reduces their corporate tax rate, optimizes how they pay themselves and protects their wealth as the business grows.
The difference between a generic tax filing and a proper corporate tax plan is $15,000 to $60,000 per year in tax savings for most Hamilton businesses. We build that plan from your first consultation. For a full overview of our corporate tax planning services, visit our main tax planning page.
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Why Corporate Tax Planning Matters for Hamilton Businesses
| Without Tax Planning | With Gondaliya CPA Tax Planning |
|---|---|
| Paying up to 26.5% corporate tax on all income | SBD applied: 12.2% on the first $500,000 of active business income |
| Owner takes salary only, paying up to 53.53% personal tax | Salary-dividend split optimized: RRSP room created, CPP managed, combined tax minimized |
| Passive investment income inside opco erodes SBD ($71,500 cost at $50,000 passive) | Holdco established: investments transferred via tax-free dividends, SBD preserved |
| Equipment depreciated slowly over years | Immediate Expensing on up to $1.5 million: full first-year deduction on equipment |
| SR&ED credits never claimed (common for Hamilton metal fabricators and manufacturers) | T661 filed: 35% refundable credit on eligible R&D. $200,000 in engineering or welding development salaries = $70,000 cash back from CRA |
Corporate Tax Planning Services for Hamilton Businesses
| Service | What We Do for Hamilton Businesses |
|---|---|
| SBD optimization | The Small Business Deduction reduces your corporate tax rate to 12.2% on the first $500,000 of active business income. We ensure every eligible dollar qualifies. Associated corporation analysis completed for Hamilton multi-corp owners including fabrication-and-installation company structures common in the steel sector. |
| Salary-dividend optimization | We calculate the ideal salary-dividend split based on your personal tax bracket, RRSP contribution room, CPP benefit goals and family situation. Most Hamilton business owners save $8,000 to $25,000/year from the correct split alone. |
| Holdco structuring | Once retained earnings exceed $200,000, we establish a holding company. Investments transfer from the operating company to the holdco via tax-free inter-company dividends. Passive income is isolated from the SBD calculation. Wealth is protected from operating business risk. |
| SR&ED tax credits | Hamilton has one of Ontario's highest concentrations of metal fabrication, steel processing and advanced manufacturing. Custom welding processes, alloy testing, CNC programming for new geometries, prototype tooling and production line automation all qualify for SR&ED. We prepare the T661: 35% refundable credit on eligible expenditures. |
| Immediate Expensing | CCPCs can deduct up to $1.5 million in eligible property purchases in the year of acquisition. A Hamilton fabricator buying $500,000 in a new laser cutter and press brake gets a $500,000 deduction in year one instead of 20% declining balance over many years. |
| LCGE planning | Each shareholder of a qualifying CCPC can shelter up to $1,281,866 in capital gains on exit. We issue non-voting shares to family members, maintain the 24-month holding period and monitor the 90% active asset test. Two owners with spouses: $5.1 million sheltered. |
| IPP (Individual Pension Plan) | For Hamilton business owners over 40 with T4 salary income exceeding $150,000, an IPP provides higher contribution limits than an RRSP. The corporation deducts the contribution. The pension grows tax-deferred. We evaluate IPP suitability for every qualifying client. |
| CRA audit support (FREE) | If CRA reviews or audits your corporate tax return, we represent you at no additional charge. We respond to every CRA request, attend every meeting and negotiate every reassessment. CRA audit support is FREE for every Gondaliya CPA client. Corporate Tax Planning → |
Hamilton Corporate Tax Planning: Real Client Results
Steel Fabricator, North End Industrial
A Hamilton steel fabrication company supplying structural components to construction firms across Ontario was paying 26.5% corporate tax on $820,000 in income. We applied the SBD to the first $500,000 (12.2%), claimed the Ontario M&P rate on the $320,000 above the SBD (25.0% instead of 26.5%), filed a first-ever SR&ED claim on custom welding process development and CNC programming for non-standard geometries ($56,000 refundable credit) and claimed Immediate Expensing on a $380,000 fiber laser cutter. Annual tax savings: $74,200.
Healthcare Professional, McMaster Area
A specialist physician near McMaster University Medical Centre earning $540,000 through a professional corporation had no holdco, no salary-dividend optimization and $72,000 in passive investment income inside the opco eroding the SBD entirely. We implemented a 60/40 salary-dividend split ($33,600 RRSP room created), established a holdco, transferred $520,000 in investments via tax-free dividends and restored the full SBD. Annual savings: $41,800. The physician also established an IPP for $38,000 in additional annual contributions.
Construction Company, Hamilton Mountain
A residential construction company building new homes on Hamilton Mountain had $1.4 million in revenue with 2 associated corporations splitting the SBD. We restructured: allocated the full SBD to the primary operating company, reclassified the second entity as a property holding company with passive treatment, claimed Immediate Expensing on $210,000 in excavation equipment, ensured T5018 compliance for 18 subcontractors and established a holdco for $280,000 in retained earnings. Annual savings: $33,600.
Tech Startup, McMaster Innovation Park
A health-tech startup near McMaster Innovation Park with 5 developers and $420,000 in annual R&D spend had been filing T2s without SR&ED claims for 2 years. We prepared the T661 for the current year and 1 prior year (within the 18-month retroactive window). Total SR&ED credits recovered: $168,000. We also restructured the share classes for a planned Series Seed round, implemented zero-rated HST treatment for US hospital clients producing $4,100/quarter in HST refunds and established founder vesting for 3 co-founders.
How Corporate Tax Planning Works at Gondaliya CPA Hamilton
Assess
We review your current corporate structure, financial statements, tax returns and personal tax situation. We identify every tax planning opportunity: SBD, salary-dividend, holdco, SR&ED, Immediate Expensing, LCGE and IPP.
Plan
We build a written tax plan with projected savings. Every recommendation has a dollar amount attached. You see exactly how much you save and what steps are required to implement.
Implement
We execute the plan: restructure salary-dividend, establish the holdco, file the SR&ED claim, claim Immediate Expensing, issue family shares, set up the IPP. Every step done for you.
Monitor
Tax planning is not a one-time event. We review the plan twice per year and adjust for changes in revenue, regulations, family circumstances and business structure.
Hamilton Corporate Tax Planning. From $400. CRA Audit Support FREE.
Fixed flat fee. No hourly billing. Written tax plan with projected savings. 900+ five-star reviews.
2026 Corporate Tax Rates for Hamilton Businesses
| Income Type | Federal Rate | Ontario Rate | Combined Rate |
|---|---|---|---|
| Active business income (first $500,000, CCPC, SBD) | 9.0% | 3.2% | 12.2% |
| Active business income (above $500,000) | 15.0% | 11.5% | 26.5% |
| Investment income (passive, inside corporation) | 38.67% | 11.5% | 50.17% |
| Manufacturing and processing income (above SBD) | 15.0% | 10.0% | 25.0% |
| Small business income (eligible for Ontario SBITC) | 9.0% | 3.2% | 12.2% |
Hamilton Steel and Metal Fabricators: 25.0% vs. 26.5%. Ontario provides a reduced 10.0% rate (instead of 11.5%) on eligible manufacturing and processing income above the SBD threshold. A Hamilton fabricator with $900,000 in income saves an additional $6,000/year from the M&P rate reduction on the $400,000 above the SBD. We ensure every eligible manufacturer and fabricator claims this rate. Corporate Tax Planning →
Our Hamilton Office
Serving Hamilton, Burlington, Stoney Creek, Dundas, Ancaster, Flamborough, Grimsby, Binbrook, Waterdown, Caledonia and all of the Hamilton-Wentworth region. In-person and virtual appointments available.
70 Starling Dr, Hamilton, ON L9A 0C5
Phone: (647) 212-9559
Industries We Serve in Hamilton
Frequently Asked Questions: Corporate Tax Planning in Hamilton
Meet Your Hamilton Tax Planning Team
Your Hamilton corporate tax plan is built by licensed CPAs who serve businesses across the Hamilton-Wentworth region every day.
Sharad Gondaliya, CPA
Founder and Principal CPA. Leads corporate tax planning for Hamilton steel fabricators, healthcare professionals, construction companies, tech startups and professional services firms. Specializes in SBD optimization, holdco structuring, SR&ED credit recovery and LCGE exit planning.
Vandana Goel, CPA
Senior CPA. Manages T2 preparation and tax compliance for Hamilton businesses. Experienced in salary-dividend optimization, heavy equipment CCA schedules, Immediate Expensing, associated corporation analysis and CRA audit response for Hamilton-Wentworth clients.
What Our Clients Say
900+ five-star reviews from business owners across Ontario and Canada.
10 Advanced Corporate Tax Strategies for Hamilton Businesses
1. Maximize the SBD by managing passive income
Passive investment income above $50,000 inside the operating corporation erodes the SBD. Every $1 above $50,000 reduces the SBD limit by $5. At $150,000 in passive income, the SBD is eliminated entirely, costing $71,500 in additional tax. We transfer investments to a holdco before this threshold is reached.
2. Claim the manufacturing and processing rate
Hamilton manufacturers and steel fabricators qualify for a reduced Ontario rate of 10.0% (vs. 11.5%) on eligible M&P income above the SBD threshold. This reduces the combined rate from 26.5% to 25.0%. On $400,000 above the SBD, the savings are $6,000/year. We calculate M&P eligibility for every manufacturing and fabrication client in Hamilton.
3. File SR&ED for metal fabrication and process development
Hamilton steel fabricators developing custom welding techniques, testing new alloys, programming CNC for non-standard profiles, designing prototype tooling and automating production lines qualify for SR&ED. The 35% refundable credit on $200,000 in eligible expenditures produces $70,000 in cash from CRA. We prepare the T661 including the technical narrative and financial summary.
4. Use Immediate Expensing on heavy equipment
A $380,000 fiber laser cutter, a $250,000 press brake, a $200,000 fleet upgrade or $150,000 in shop renovations can be fully deducted in the year of purchase under Immediate Expensing (CCPC, up to $1.5 million). This accelerates the deduction from 20% declining balance to 100% in year one.
5. Implement salary-dividend optimization annually
The optimal salary-dividend split changes every year based on personal income, RRSP room, CPP contribution status and family changes. We recalculate annually. A shift from 100% dividends to a 60/40 salary-dividend split typically creates $28,000 to $55,000 in new RRSP contribution room.
6. Establish a holdco when retained earnings exceed $200,000
The holding company receives dividends from the operating company tax-free, invests independently and isolates passive income from the SBD calculation. It also provides creditor protection: if the operating business faces a lawsuit or creditor claim, the holdco assets are separate. We establish the holdco, handle the share subscription and manage the annual inter-company dividends.
7. Issue family shares for LCGE multiplication
Non-voting shares issued to a spouse and adult children allow each shareholder to claim their own LCGE on exit ($1,281,866 each). Two founders with two spouses: $5.1 million sheltered from capital gains tax. We issue the shares at incorporation or through a reorganization and maintain LCGE eligibility throughout the holding period.
8. Evaluate an IPP for owners over 40
An Individual Pension Plan provides higher tax-deferred retirement savings than an RRSP for business owners over 40 with T4 salary exceeding $150,000. The corporation deducts the IPP contribution. At age 55, the IPP contribution limit can exceed $40,000/year (vs. $32,490 RRSP limit). We evaluate IPP suitability for every qualifying Hamilton client.
9. Structure multi-company fabrication operations correctly
Hamilton fabricators frequently operate through multiple corporations: one for fabrication, one for installation, one for equipment leasing. These may be associated corporations sharing the $500,000 SBD. We review the association rules, structure the SBD allocation to maximize the benefit, manage inter-company pricing and ensure each entity files correctly.
10. Plan for succession and exit from day one
Whether you are selling your Hamilton business in 5 years or 20 years, the exit structure must be in place now. LCGE eligibility requires a 24-month holding period, 90% active asset test and qualifying CCPC shares. Estate freeze, family trust and intergenerational transfer structures all require advance planning. For Hamilton family-owned fabrication shops, the intergenerational transfer rules offer additional tax-deferred options. We build the exit plan into your tax strategy from the first year.
Hamilton Corporate Tax Planning. Built by a Licensed CPA.
SBD optimization, salary-dividend strategy, holdco, SR&ED, Immediate Expensing, LCGE, CRA audit support FREE. Fixed flat fee from $400. Office at 70 Starling Dr.