A key benefit of incorporating is the ability to hold investments within the professional corporation, such as stocks, bonds, real estate, and other assets. By earning investment income within the corporation, the corporation is taxed at the **corporate tax rate**, which is generally lower than the personal tax rate on investment income.
Moreover, you may be able to use tax-planning strategies such as the **capital dividend account (CDA)** to access certain tax-free amounts. For instance, when the corporation sells investments for a gain, it may be able to pay out tax-free dividends from the CDA. This can be a useful tool for extracting tax-efficient income from the corporation to the individual shareholders.