You could be losing tens of thousands of dollars every year…
And not even know it.
Your business is doing well. There’s extra money left over after expenses and tax. Instead of pulling it out, you leave it inside the company and invest it.
That feels smart. Responsible. Like something a successful business owner would do.
And sometimes, it is.
But here’s the part some people miss.
In Canada, when your company earns passive income, like interest, rent, or investment income, it can be taxed at extremely high rates. In some cases, over 50%.
That means more than half of what your investments earn could go to tax before that money ever has the chance to grow.
And if your company earns more than $50,000 a year in passive income, it can also affect how much of your business income qualifies for the lower small business tax rate.
We’re not just talking about investment tax. We’re talking about your whole structure.
It isn’t about doing something wrong. It’s about outgrowing an old setup.
What worked when your company was smaller might not be the best fit now.
As your profits grow, the rules change. The impact gets bigger. The drag becomes real.
And small percentages matter when you’re building long-term wealth.
The question is this:
What is that money meant to do for you?
Is it meant to give you more freedom?
More time?
More choice in how and when you step back from the business?
Because your tax strategy should support that life.
Not slowly work against it.
If you have a large amount of money sitting inside your company and it’s earning investment income, it might be time to take a closer look.
Not with fear. With clarity.
Because wealth isn’t just about making more.
It’s about keeping more of what you earn and making sure it’s working in the right place.
If you’re earning passive income inside your company and want clarity on whether your current setup still makes sense, let’s talk.
Book a Complimentary Strategy Call and we’ll walk through it together.
