Helping Business Owners Invest Tax-Efficiently

As a business owner, the tax treatment on your investments is an important important consideration.

Use the Corporate Tax-Deferral Advantage

Small business income in BC is currently taxed at 13.5%†. Business Owners can defer taxes simply by leaving their corporate surplus in their corporation or holding company rather than taking income or dividends and investing in RRSPs, RESPs, TFSAs, or open accounts. The tax deferral advantage is significant.

Avoid Taxes on Income You Don’t Need

Strategies and tools exist that can minimize unnecessary distributions and maximize the compounding of investment growth to avoid taxable income. Invest for Dividends to Extract Funds Tax-Efficiently Generate eligible dividends from investments in your corporation to fund your current lifestyle. Even though you may not need investment income now, eligible dividends from your investments provide a tax-efficient way to extract funds from your corporation.

Investment Process for Business Owners

High-Income Corporations

If your corporation’s active business income is over $500,000, there are other investment strategies that can be used to reduce income in your corporation or help offset income distributed to you as dividends or income. Contact me today to request more information about tax-efficient investing for business owners.