Law Corps - still worth it?

[Cool_name]

Anyone here recently formed a law Corp? 
 

For various reasons I’m thinking of going down that route, but wondering if anyone had any recent experiences with the same. Did it net out positive in the end? What sort of costs are incurred keeping it going each year?
 

Obviously I will see an accountant etc for the nitty gritty, but I’d rather not waste $500 to be told not to do it.

 

Pre-tosi it appeared to be a no brainer, now it isn’t as clear. 

[Mountebank]

Depends on your personal tax situation and your goals. If you have a bunch of retained earnings and nowhere else to put them, incorporation can make sense.

[Chambertin]

It didn't matter pre-tosi because you couldn't income split unless you were unfortunate enough to be married to another lawyer.

I guess you could have paid your spouse to do work for the law corp but that's a whole other ballgame.

The ask is still the same as anyone looking to incorporate as Mountebank has already said. 

[Cool_name]

20 hours ago, Chambertin said:

It didn't matter pre-tosi because you couldn't income split unless you were unfortunate enough to be married to another lawyer.

I guess you could have paid your spouse to do work for the law corp but that's a whole other ballgame.

The ask is still the same as anyone looking to incorporate as Mountebank has already said. 

I thought pre-tosi you could pay out dividends to your spouse on a tax advantageous manner? Maybe I’m thinking of a different change or, perhaps more likely, am just wrong. 
 

Thanks for the responses, sounds like the next step is to spend the money to see an accountant.

[Mountebank]

3 hours ago, Cool_name said:

I thought pre-tosi you could pay out dividends to your spouse on a tax advantageous manner? Maybe I’m thinking of a different change or, perhaps more likely, am just wrong. 
 

Thanks for the responses, sounds like the next step is to spend the money to see an accountant.

You're right in general but it didn't really apply to law corps since only licensees can be shareholders.

[Penguins]

On 8/10/2023 at 1:29 PM, Mountebank said:

You're right in general but it didn't really apply to law corps since only licensees can be shareholders.

I think pre-TOSI some law firms and lawyers had trust setups that enabled some degree of income splitting.