Tag: Corporate Finance

When to Incorporate Your Business

A corporation can be a fantastic financial planning tool. It gives flexibility on how to pay yourself, saves taxes, and helps to accumulate significant wealth. So, when is the right time to make the move and get incorporated? Accountants will often give you two fallback answers, these are: only when you have money left over in the corporation and only when you’re making over $200k per year. The problem is this advice is very generic and if you don’t do…

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Tips For Managing Your Business Finances

One of the things we often see with successful business owners and incorporated professionals is that they’re managing their business finances in the same way they manage their personal finances.  Instead of seeing yourself as part of your business, treat yourself as an employee. From a financial planning standpoint, this means looking at your business and managing it as a totally separate entity.  If you have a business that is structured effectively, and you’re utilizing the benefits of having your…

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Why You Should Have A Capital Dividend Account In Your Corporation

One of the biggest secrets that successful business owners and entrepreneurs often don’t know about is the capital dividend account. The capital dividend account is a notional account, which means you will not see it unless there’s a balance. It allows for life insurance proceeds and the tax-free portion of capital gains to flow out of your corporation tax-free. The reason we call it one of the best-kept secrets for business owners is because almost nobody is using it. If…

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Separating Your Personal And Business Finances

One of the things that we often see with incorporated professionals, entrepreneurs, and business owners, is the intermingling of their personal and corporate finances. The blurred line between their personal and business finances creates complexity, and as an entrepreneur, you cannot grow out of complexity.  To help simplify and organize your financial picture, we recommend that you ensure you’re taking the right amount of money out of your corporation, paying a dividend to you personally as needed, and leaving the…

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