Salary-Dividend Planning Considerations
There are many factors to consider when determining what remuneration strategy is right for you. Please see the topics below for a discussion of the various factors that play into the discussion.
NPO Accounting Requirements
It’s a question most board members find asking themselves when gearing up for their first year-end. Do we need an audit? Do we require an external auditor?
Associated Corporations
Every CCPC (Canadian Controlled Private Corporation) is allotted a $500,000 small business limit, in which the first 500k of taxable income is taxed at the more favorable small business rate of 11% (in Alberta). Any active business income in excess of this limit is taxed at the general rate of 23% (in Alberta).
Business Development
Growing a business can be a difficult task. We tend to focus our time on the areas that we are familiar with or come natural to us. Consequently, the other areas are left unaddressed and though it may not present issues in the short term, it usually has an impact on the long-term health of the business.
Receipts
In general, you should keep record of all amounts claimed for tax purposes. The CRA advises to keep your receipts and other supporting documentation for up to 6 years. Tax returns filed by individuals,CCPC’s, and trusts become statute
Home Construction
If you are building a residential property or have acquired a residential property with a business purpose, and you subsequently rent the property (as opposed to sell), you may be deemed to have disposed of the property at fair
Incorporation
There are advantages and disadvantages to incorporation depending on your situation. The following points will help you decide whether it makes sense to incorporate your business. Note that even if you do not incorporate right away, you can choose to incorporate and roll your business into a corporation in the future.
Investments
It’s usually a question that rolls around during the start of a new year, or after personal tax season is finished. What should I do with my excess cash and how do I save for the future?
