1. Incorporation for Professionals Spring 2011

5. Tax Deferral Taxable Income Personal Tax Rate Corporate Tax Rate Difference $0 $36,146 20.06% 13.50% 6.56% $36,147 $41,544 22.70% 13.50% 9.20% $41,545 $72,293 29.70% 13.50% 16.20% $72,294 $83,001 32.50% 13.50% 19.00%

6. Tax Deferral Taxable Income Personal Tax Rate Corporate Tax Rate Difference $83,001 $83,088 34.29% 13.50% 20.79% $83,089 $100,787 38.29% 13.50% 24.79% $100,788 $128,800 40.70% 13.50% 27.20% $128,800 and up 43.70% 13.50% 30.20%

8. Taxation of Corporate Investment Income Investment Income Corporate Tax Rate Refundable Tax “ Net” Tax Rate Interest 44.67% 26.67% 18% Rent 44.67% 26.67% 18% Dividends 33.33% 33.33% 0% Capital gains 22.33% 13.33% 9%

26. Questions?