• Linkedin
  • Twitter
1-888-368-1488 info@legacywealthcanada.com
Legacy Wealth Advisors
  • HOME
  • ABOUT
  • SERVICES
    • BUSINESS OWNERS
      • FINANCIAL PLANNING FOR BUSINESS OWNERS
      • BUSINESS CONTINUATION
      • BUSINESS SUCCESSION
      • EXECUTIVE BENEFITS
      • EMPLOYEE BENEFITS
    • MEDICAL PROFESSIONALS
      • MEDICAL STUDENTS
    • LIFE STAGES
      • FINANCIAL PLANNING
      • STARTING YOUR CAREER
      • GROWING FAMILIES
      • MATURING FAMILIES
      • PREPARING FOR RETIREMENT
      • RETIREES
      • ESTATE PLANNING
    • RETIREMENT PLANNING
      • TAX FREE SAVINGS ACCOUNT
      • REGISTERED EDUCATION SAVINGS PLAN
      • REGISTERED DISABILITY SAVINGS PLAN
      • REGISTERED RETIREMENT SAVINGS PLAN
      • REGISTERED RETIREMENT INCOME FUND
    • FEE FOR SERVICE
    • PRIVATE CLIENT
    • ONLINE INVESTING
  • RESOURCES
    • CALCULATORS
  • BLOG
  • CONTACT
  • Search
  • Menu

Investing as a Business Owner

August 31, 2020/in Blog, Business Owners, corporate, Investment, rrsp, Tax Free Savings Account /by Legacy Wealth

Investing as a Business Owner

Many business owners have built up earnings in their corporation and are looking for tax efficient ways to pull the earnings out to achieve their personal and business financial goals such as:

  • building and protecting your savings

  • providing for loved ones

  • planning for retirement

Factors to consider when investing as a corporation:

What’s the purpose of the investment? First, think about what you’ll be doing with your savings. This will help dictate what savings vehicle is best suited for your situation. Then consider the following factors:

  • Taxes: As a small business owner, you have access to the small business tax rate which is typically lower than your personal tax rate. (See table below.) Also, as of January 1, 2019, the Federal Budget decreased the small business limit for corporations with a set threshold of income generated from passive investments.

2019 Corporate Income Tax Rates

  • Taxes on investment growth: Depending on what you invest in, you will want to review this as different asset types are taxed at different rates.

  • Timing: You can control the timing of the payout which means you could potentially defer paying out the money until you need it and determine if you’d like to pay it out as salary or dividend.

  • Creditor Protection: Sometimes, investments held inside a corporation can be vulnerable to creditors, therefore you may want to consider using a holding company or trust or pay out money to yourself personally. This can be complex and requires professional advice.

  • Capital Gains Exemption: If your investment grows too large, it may endanger your qualification for the lifetime capital gains exemption that ‘s available when shares of a qualified small business corporation are sold or transferred.

For business owners, before investing personally or corporately, it’s certainly worth seeking professional advice to ensure that it suits your individual circumstances. 

Contact Us
Share this entry
  • Share on Facebook
  • Share on Twitter
  • Share on Linkedin
  • Share by Mail
http://legacywealthcanada.com/wp-content/uploads/2020/09/Slide1.jpeg 405 720 Legacy Wealth http://legacywealthcanada.com/wp-content/uploads/2018/09/legacy-wealth-logo.png Legacy Wealth2020-08-31 06:12:052020-09-01 05:12:07Investing as a Business Owner

Book a Meeting

Search Blog Posts

Latest News

  • TFSA vs RRSP – What you need to know to make the most of them in 2021January 21, 2021 - 2:01 pm
  • 2021 Financial CalendarJanuary 4, 2021 - 6:00 am
  • Government of Canada to allow up to $400 for home office expensesDecember 29, 2020 - 11:47 am

Categories

  • 2019 Only
  • 2020
  • 2020 Only
  • 2021
  • Accountants
  • Blog
  • Budget
  • Business Owners
  • Business Owners
  • business succession
  • buy sell
  • Charitable Gifting
  • Compensation
  • Coronavirus
  • Coronavirus – Associates
  • Coronavirus – Practice Owners
  • Coronavirus – Retired
  • Coronavirus – Retiring
  • Coronavirus – Students
  • corporate
  • Critical Illness Insurance
  • Debt
  • Debt Management
  • disability
  • Disability Insurance
  • education
  • Employees
  • Estate Planning
  • Families
  • Family
  • Financial
  • Financial Advice
  • Financial Advisor
  • Financial Planning
  • Group Benefits
  • health benefits
  • Home
  • Home Buyer's Plan
  • incorporated professionals
  • individuals
  • Insurance
  • Investment
  • investments
  • Key Person
  • life insurance
  • long term care
  • mortgage
  • Mortgages
  • News
  • Non-Registered Investments
  • Ontario Only
  • Parenthood
  • Partners
  • pension plan
  • permanent insurance
  • personal finances
  • Professional Corporations
  • Protection
  • rdsp
  • Real Estate
  • Registered Education Savings Plan
  • RESP
  • Retirees
  • retirement
  • Retirement Planning
  • rrsp
  • Savings
  • Segregated Funds
  • Sole Proprietor
  • tax
  • Tax Free Savings Account
  • term insurance
  • TFSA
  • travel insurance
  • Uncategorized

Get in Touch

Legacy Wealth Advisors
Tel: (888) 368-1488
Email: info@legacywealthcanada.com

5 Melanie Dr, Unit 10
Brampton, ON
L6T 4K8

Book a Meeting

Latest News

  • TFSA vs RRSP – What you need to know to make the most of them in 2021January 21, 2021 - 2:01 pm
  • 2021 Financial CalendarJanuary 4, 2021 - 6:00 am
  • Government of Canada to allow up to $400 for home office expensesDecember 29, 2020 - 11:47 am

Tweets by LegacyWealthCda

Newsletter

Online Investing

About

Legacy Wealth Advisors is a completely client-focused financial services company founded on the principals of providing clients with an Elite Advisory experience, while empowering them to achieve financial independence.

©2018 Financial Tech Tools Inc. | Privacy Statement and Terms of Use
  • Linkedin
  • Twitter
CERB transitions to NEW Recovery Benefits and EI CEBA extended to October 31st. Expanded to include more businesses.
Scroll to top