Corporate Planning – Passive IncomeTax law changes that took place last year in Canada, have impacted how business owners need to handle money they retain inside their company.
A huge advantage of incorporating versus being a sole proprietor is the lower tax rate on business income. This is only the case if the business is generating more revenue than is needed for personal business expenses and this extra revenue can be retained inside the company.
This retained revenue can be invested in a variety of different ways however there is a new law stating that if your corporate investments earn $50,000 or more of taxable income then you begin to lose your small business tax rate.
Every business owner wants the problem of tax because it means that they are profitable enough for the tax to become a problem. It then becomes the goal to reduce those taxes wherever possible.
To learn more about this topic, please check the following article provided by IG Wealth Manage group.
At CompanyOn, we’re committed to helping our community of solo practitioners with information that features specific advice and guidance on how to run a business. It is for that reason we are partnering with individuals that are experts in their field and bring a wealth of knowledge on topics that matter to all of you. It is for that reason that we are happy to welcome Kevin Parton to our community!
Kevin is an Executive Financial Consultant with IG Wealth Management group. His expertise is on personal and business financial planning that leads clients on a path to financial certainty. His work and that of his team have earned them a spot as one of the top 100 teams within IG Wealth Management across all 2,500 teams in Canada.
If you would like to learn more about personal and business financial planning, he can be found at [email protected]
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