Wanda Ho has annual employment income in excess of $$300,000.$ Because of this, any additional income that she receives will be subject to a combined federal$/$provincial income tax rate of $51\%.$ Several years ago, she began to carry on a business as a sole proprietor. She anticipates business income of $$142,000$ for the $2023$ taxation year.

In her province of residence:

$$ the corporate income tax rate is $2\mathrm{.}5\%$ on income eligible for the SBD and $13\%$ on other corporate income

$$ the dividend tax credit is $20\%$ of the dividend gross up for non$-$eligible dividends and $30\%$ for eligible dividends

Ms$.$ Ho has asked your advice as to whether she should incorporate the business. Advise her with respect to any income tax deferral that will be available on income retained by the corporation and on any income tax savings that will be available if all of the after$-$tax income is distributed as taxable dividends.