Business owners usually have surplus profits accumulating in their corporation. This could be in either the operating company or in the holding company. Funds in an operating corporation are normally used for business needs. They could however be transferred via inter-corporate dividends to a holding company. Left on deposit they are taxed at a high marginal rate. For this reason, business owners are constantly considering the tax implications of corporate investments and tax efficient methods to get these surplus assets out of the corporation.

Our Approach for Business Owners

  • Evaluate how shareholders are paying themselves. Implement strategies to reduce / eliminate taxes so as to maximize their income. This is usually an area where we make significant difference for our clients.
  • Explore how we can reduce / eliminate taxes through dividend tax planning with family members (spouse, children over 18).
  • See how we can reduce / eliminate taxes on corporate investments.
  • Implement strategy to create a tax-free retirement income stream.
  • Ensure that strategies are in-place to reduce the amount the estate will pay for taxes.
  • Examine the corporate ownership structure. Where appropriate introduce Hold-Cos and Trust to reduce / eliminate taxes.