CCPC and Holdco Structures: Why Every Business Owner Should Consider This
A holding company above your operating CCPC allows you to shelter retained earnings from active business at low corporate rates, invest passively, and split income with adult family members. Here's when it makes sense.
Passive Income Trap: How Investment Income Erodes Your Small Business Deduction
For every $1 of adjusted aggregate investment income above $50,000 in a CCPC, the small business deduction limit shrinks by $5. At $150,000 of passive income, the SBD disappears entirely. Here's how to plan around this.
Estate Freeze: How Business Owners Cap Their Tax Liability Today
An estate freeze fixes the value of a business owner's shares at today's value — locking in their capital gains liability now — while new growth accrues in shares held by family members or a family trust. Here's how it works.
Employee Profit Sharing Plans vs. Employee Benefit Plans: What's the Difference?
An EPSP allocates a share of employer profits to employees — contributions are deductible to the employer but taxable to the employee in the year received. An EBP, by contrast, allows employers to defer employee taxation. Choosing incorrectly has significant consequences.
Canada's Corporate Minimum Tax: Who It Hits and Who Escapes
Canada's 15% Corporate Minimum Tax, proposed for 2024 and based on the Pillar Two global minimum tax framework, targets large multinational corporations with global revenues exceeding €750 million. Canadian-owned SMEs are not affected.
Salary vs. Dividend in 2021: Running the Numbers for Your CCPC
The optimal salary-dividend mix for a CCPC owner depends on the marginal tax rate, province, desired RRSP contribution room, CPP contributions, and business income level. We work through four scenarios for Ontario and British Columbia.