Dividends

January 21, 2013

Create a retirement plan out of your company by investing excess cash within your corporate accounts

By Webmaster|2017-01-02T20:23:17-07:00January 21st, 2013|Business Management, Personal Taxation|

One of the many advantages of incorporating your business are the long-term benefits that can come with investment of excess assets. You spend a lifetime try to make your company worth something, and when you finally do, you now have excess cash to work with. What many people don't realize is that you can essentially create a retirement plan out of your company. The norm these days is to invest in an RRSP, which brings down your taxable income each [...]

December 21, 2012

As a small business owner, should you pay yourself a salary or dividends out of your company?

By Webmaster|2017-01-02T20:23:17-07:00December 21st, 2012|Business Management, Corporate Taxation, Payroll and Taxable Benefits, Personal Taxation|

In Canada, many small business owners don't realize that they have some options in terms of the type of remuneration they can receive from their company. Each type of remuneration has its advantages as well as disadvantages. Due to the unique circumstances of each business there is never a right answer as to which type of remuneration is best. To you the owner, the type of remuneration you would like to receive depends on your short and long term goals [...]

Setting up your company payroll

By Webmaster|2017-01-02T20:23:17-07:00December 7th, 2012|Business Management, Corporate Taxation, Payroll and Taxable Benefits, Personal Taxation|

Many new owners are sometimes not aware that even though they have incorporated, there is a liability to the government with regards to company payroll. As an employee, what you do know is that you receive your pay cheque each month with CPP, EI, and tax withholdings. However, what many don't know is what the employer has to do with those withholdings. To comply with CRA, if you have monthly payroll, you must remit the paycheque withholdings to CRA by [...]