Holding Company in Canada: Is It Worth Setting One Up?
A holding company (HoldCo) in Canada is an ordinary corporation used mainly to own shares in another company or to hold investments, rather than to run a business day to day. It can be worthwhile once your operating company (OpCo) produces after-tax cash you will not need personally for several years, but it adds cost […]
How to Set Up Your Corporation for Success
A Canadian corporate structure may use one operating company on its own, a holding company above or alongside it, and sometimes a family trust. The right setup depends on how much profit stays in the business, your operating risk, your investment plans, family succession, and whether a future share sale is likely. This is a […]
Shareholder Loans: What it is and How Does it Work?
Whether you’re the sole business owner or a shareholder in an incorporated partnership, understanding shareholder loans is essential to maximizing the benefits of your corporate structure. In a time when interest rates are increasing, a shareholder loan can be a great option that offers lower interest, more flexibility and control. Let’s dive into what a […]
Should My Spouse be a Shareholder of My Company?
You likely already share a home with your spouse, but should you share your business and make them a shareholder too? This is a complex decision that depends on several factors: the nature of your relationship, each person’s involvement in the business, your shareholder structure, and tax. One tax rule in particular, the Tax on […]
The Difference Between an Operating Company, Holding Company, and Family Trust
An operating company runs your active business, a holding company is a separate corporation used mainly to own shares or assets, and a family trust is a legal relationship where trustees hold property for beneficiaries. Most business owners start with just an operating company and add the others only when a specific goal, like investing […]