As the Shareholder of your company, how do you actually get your money out?
Here are a few ways:
Pay yourself a salary from your corp...
How to take money out of your business.
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New Child Tax Benefits
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To Incorporate or not to Incorporate
November 28, 2014
If you are thinking about incorporating your business that you currently operate as a sole proprietor, keep in mind that the Income Tax Act allows for a tax-free rollover of assets into your new corporation. This rollover is available under Section 85(1) of the Income Tax Act and is accomplished by completing and submitting the CRA Form T2057 entitled “Election on Disposition of Property by a Taxpayer to a Taxable Canadian Corporation”.
You should consider the existing assets that you currently use in your business that will also be used in the new corporation. Perhaps you use an expensive piece of equipment or tools or you have a property that has increased substantially in value. You can transfer these to your corporation without incurring taxes personally. Your corporation will pay you in a combination of share and non-share consideration.
Don’t let the fear of a large personal tax bill prevent you from considering incorporation!