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 […]
Investing Corporately vs. Personally: The Winning Strategy For You
Should you invest your money personally or inside your corporation? Let’s dive into the key differences between investing personally vs. corporately and how to make the most strategic investments that are right for you. Investing Your Money Personally vs. Inside Your Corporation Investing Personally When you invest personally, you have two main options: registered and […]
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 […]
What is a Family Trust and How Does it Benefit Business Owners?
A family trust in Canada is a legal relationship in which trustees hold and manage property, often the shares of a private company, for a group of beneficiaries such as a spouse and children. For business owners it is typically an inter vivos discretionary trust, used to support succession, flexible distributions, and planning for a […]
How to Invest Inside Your Holding Company
You have cash built up inside your holding company, and you’re ready to invest it and make that money work for you, but where do you start? In this blog, we’ll share the best ways to invest inside your holding company and what to invest in. Let’s start with the basics—what a holding company is […]
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 […]
How to Invest and Save Tax Using Your Corporation
Many business owners are not fully using their corporations to invest and manage tax. The good news is that it is never too late to start. If you want to reach financial freedom sooner, here are five corporate strategies to help you make the most of your investments and manage tax through your corporation. 5 […]
Salary vs. Dividends: How to Pay Yourself
Which is right for you, salary or dividends? Being incorporated gives you flexibility in how you pay yourself, and that choice can affect how much tax you pay and how you save for retirement. Let’s walk through the trade-offs so you can make an informed decision with your advisor. The difference between paying yourself a […]
The Passive Income Tax Rule Explained: How to Invest & Save Tax
Are you aware of how Canada’s passive income tax rule affects you as a business owner? Many business owners are unclear about the confusing nature of the passive income tax rule. Without a proper understanding of the rule, you risk paying too much tax because you’re not optimizing your investment strategy. What is Passive Income? […]