John Robinson is the sole owner of Robinson Inc in 2021. Robinson Inc. operates in a province with a provincial corporate tax rate of 6% for income eligible for the small business deduction, and 11% for all other income. Robinson Inc. earned taxable income of $200,000 during 2020, all of which is active business income. John Robinson’s marginal tax rate (federal and provincial combined) is 45%. He withdraws all of his corporation’s after-tax income as a dividend each year. John Robinson is considering whether it would be more beneficial if he were to operate his business as a sole proprietorship as opposed to a corporation.