The Incorporated Canadian

Most corporate owners don’t think much about their year-end. It’s just the date their accountant uses to prepare the tax return. But it’s actually a deadline, and some of the decisions that affect how much tax you pay need to be made before it.

In this episode, I go through five of them:

• How to estimate your profit and corporate tax, and check your instalments
• Whether to pay yourself a bonus, and why you have 180 days to pay it
• Timing your dividends, and why taking the same amount each year can mean less tax
• Buying equipment before year-end so you get the deduction sooner
• Reviewing your shareholder loan, in both directions

Episodes I mention:

Salary vs. Dividends: Why Tax Savings Aren’t the Only Factor

Buying a Car Through Your Corporation

Shareholder Loans: How to Avoid a Surprise Tax Bill

If you’d like help with your own year-end planning, book a consultation.

More free resources for incorporated Canadians, and sign up for my newsletter.

About Ronika

Ronika Khanna, CPA, CFA, is a Montreal-based accountant and the founder of Montreal Financial. Since 2008, she has helped Canadian business owners with corporate tax, paying themselves from their corporation, and building wealth inside it, including the Quebec-specific rules most resources skip. She’s the author of five books for Canadian small business owners and hosts The Incorporated Canadian.

Should your corporation own your car? In this episode of The Incorporated Canadian, Ronika Khanna, CPA, CFA, explains the two ways incorporated Canadians can handle a vehicle, and why buying it through the corporation isn’t automatically the smart move.

There are specific rules here, and getting them wrong can cost you more in personal tax than you save. I walk through your two options, the tax consequences of each, and how to tell which one makes sense for you.

What we cover:

• Option 1: buying the car personally and having your corporation reimburse you per kilometre
• The 2026 CRA prescribed rates (73 cents for the first 5,000 km, 67 cents after)
• Option 2: having the corporation buy or lease the car and claim the expenses directly
• The standby charge and operating expense benefit, and how they’re taxed personally
• The 50 percent business use threshold, and why it’s the most important number in this decision
• How to keep a proper automobile log

About the host: Ronika Khanna is a Montreal-based CPA and CFA and the founder of Montreal Financial. She helps incorporated Canadians make better financial decisions about their corporations.

Free resources for incorporated Canadians: https://www.montrealfinancial.ca/corporations

Newsletter: https://www.montrealfinancial.ca/newsletter

Most business expenses are deductible, but the rules around home office, car, and professional fees each work a little differently.

In this episode, I walk through the expenses every business owner should know, including the one expense you generally can't claim.

What we cover:

• Home office expenses and how to calculate your business-use percentage
• Vehicle and mileage log requirements, plus the per-kilometer rate option for incorporated owners
• Subscriptions, software, and professional dues
• Phone and internet expense allocation
• Training courses and conferences, and the direct-expense vs. capital-cost distinction
• Professional fees: accounting, legal, translation, registration
• The one expense you generally can't claim

About the host: Ronika Khanna is a Montreal-based CPA and CFA and the founder of Montreal Financial. She helps incorporated Canadians make better financial decisions about their corporations.

Want to go deeper? My masterclass, The Small Business Guide to Maximizing Tax Deductions , covers this in more depth: https://learn.montrealfinancial.ca/the-small-business-guide-to-maximizing-tax-deductions-masterclass

I also have a collection of posts on deductible expenses on the blog: https://www.montrealfinancial.ca/deductible-expenses

Free resources for incorporated Canadians: montrealfinancial.ca/corporations

Sign up for the newsletter: montrealfinancial.ca/newsletter

GST/HST for Canadian corporations: when you need to register, how the ITC calculation actually works, and how to file your return, plus some guidance on what to do if you're a Quebec corporation. If you're incorporated and generating revenue, this is one of the tax obligations that is essential to understand. This episode walks through it from registration to filing.

What we cover:

• The common myth that incorporating automatically means you have to register
• The $30,000 threshold, and why registering earlier sometimes makes sense
• Where you actually register, CRA versus Revenu Québec
• How to claim back GST/HST/QST you pay on your own expenses
• Why the tax you collect isn't your money, and what to do with it until you remit
• How the filing process and reporting periods work
• The extra QST boxes if you're in Quebec

About the host: Ronika Khanna is a Montreal-based CPA and CFA and the founder of Montreal Financial. She helps incorporated Canadians make better financial decisions about their corporations.

Check out my episode on the Quick Method, which is a simpler way to calculate what you owe, to see if you qualify: https://youtu.be/R2pmIIud1fQ

Free resources for incorporated Canadians: montrealfinancial.ca/corporations

Sign up for the newsletter: montrealfinancial.ca/newsletter

Most small business owners are either avoiding AI entirely when it comes to their finances, or throwing questions at ChatGPT or Claude and hoping for the best.

In this episode, I walk through 7 specific ways I use AI in my own practice and with my clients for small business finance and tax related tasks. The episode shows you how save time on bookkeeping, understand financial statements, and make better decisions, along with where you still need to bring your own judgment to the table.

What we cover:

• Turning a PDF bank statement into a usable Excel file
• Getting plain-language explanations of financial terms like shareholder loans and retained earnings
• Preparing for a meeting with your accountant so you're not going in blind
• Analyzing your profit and loss statement for trends and changes worth digging into
• Building a monthly bookkeeping routine and checklist
• Using AI as a brainstorming partner for financial decisions
• Decoding a confusing CRA or Revenue Quebec letter
• Where AI still needs a professional's judgment, and the privacy mistake to avoid when using it with your financial data

About the host: Ronika Khanna is a Montreal-based CPA and CFA and the founder of Montreal Financial. She helps incorporated Canadians make better financial decisions about their corporations.

Masterclass: if you want to go deeper on all 7 of these, real bank statements, real prompts, real numbers, check out Using AI to Simplify Your Small Business Finances

https://learn.montrealfinancial.ca/using-ai-to-simplify-your-business-finances

Free resources for incorporated Canadians: montrealfinancial.ca/corporations

Sign up for the newsletter: montrealfinancial.ca/newsletter

If your corporation looks a lot like a job with a fee attached — CRA might classify it as a Personal Services Business, one of the most expensive classifications a corporation can receive.

In this episode, I walk through what a PSB is, the factors CRA actually weighs, and practical ways to reduce your risk.

What we cover:

• What a Personal Services Business (PSB) is and why it matters
• The consequences of being classified as a PSB
• The main factors CRA considers: control, clients, independence, financial risk
• Real examples: a clear PSB case and a clear independent business
• Grey areas CRA weighs: revenue concentration, on-site work, the option to subcontract
• What happens if you work through an agency
• Practical ways to reduce your risk

About the host: Ronika Khanna is a Montreal-based CPA and CFA and the founder of Montreal Financial. She helps incorporated Canadians make better financial decisions about their corporations.

Every PSB situation depends on the specific facts of your case. If you want to work through your own, book a Strategy Session: montrealfinancial.ca/services/details

CRA Guide – Employee or Self-Employed: canada.ca/en/revenue-agency/services/forms-publications/publications/rc4110/employee-self-employed.html

Free resources for incorporated Canadians: montrealfinancial.ca/corporations

Sign up for the newsletter: montrealfinancial.ca/newsletter

Setting up your corporation's accounting properly from day one can save you real time, money, and cleanup at year end — and it's one of the most common things new corporation owners either skip too long or overcomplicate.

In this episode I walk you through exactly how to set it up right, so your books are actually working for you instead of catching up to you.

What we cover:

- Choosing accounting software — QuickBooks Online vs. Xero, and how to decide

- DIY bookkeeping vs. outsourcing to an accountant

- Setting up your chart of accounts, including the shareholder loan account

- Separating personal and corporate finances — and why it matters more than you'd think

- Record-keeping and bookkeeping cadence — what CRA actually requires

About the host: Ronika Khanna is a Montreal-based CPA and CFA and the founder of Montreal Financial. She helps incorporated Canadians make better financial decisions about their corporations.

Free resource: grab my Newly Incorporated Guide, which covers this and more: learn.montrealfinancial.ca/newly-incorporated-guide

Free resources for incorporated Canadians: montrealfinancial.ca/corporations

Sign up for the newsletter: montrealfinancial.ca/newsletter

Before you start the incorporation process, there are five key decisions you need to make — and getting them right from the start will save you time, money, and headaches down the road.

In this episode I walk you through each decision so you can go into the incorporation process informed and set your corporation up properly from day one.

What we cover:

• Federal vs. provincial incorporation — which is right for you
• Named vs. numbered corporation — does it matter?
• How to choose a corporate name
• Share structure and ownership — why you need to think about this carefully at the start
• Choosing your fiscal year end — and why December 31 isn't always the best choice

About the host: Ronika Khanna is a Montreal-based CPA and CFA and the founder of Montreal Financial. She helps incorporated Canadians make better financial decisions about their corporations.

Free resources for incorporated Canadians: montrealfinancial.ca/corporations

Sign up for the newsletter: montrealfinancial.ca/newsletter

One of the biggest advantages of incorporating as a solo business owner is the ability to invest within your corporation. But the tax rules are different, the planning considerations are different, and there are key concepts you need to understand before you get started.

In this episode I give you a clear high-level overview of how corporate investing works in Canada — including why it matters, how investment income is taxed inside a corporation, and the key concepts every incorporated Canadian should know about.

What we cover:

• Why corporate investing matters and who it's for
• How investing through a corporation actually works
• Types of investment income and how they're taxed differently
• RDTOH (Refundable Dividend Tax on Hand)
• The Capital Dividend Account (CDA)
• Passive income rules and the Small Business Deduction
• RRSP and TFSA considerations
• Are you ready to invest inside your corporation?

Want to go deeper? I've put together a masterclass with worked examples, planning considerations, and a full breakdown of the key concepts: learn.montrealfinancial.ca/investing-through-your-corporation-what-every-incorporated-canadian-needs-to-know

About the host: Ronika Khanna is a Montreal-based CPA and CFA and the founder of Montreal Financial. She helps incorporated Canadians make better financial decisions about their corporations.

Free resources for incorporated Canadians: montrealfinancial.ca/corporations

Sign up for the newsletter: montrealfinancial.ca/newsletter

The Shareholder Loan — What It Is and How Not to Get Burned

If you're an incorporated Canadian business owner, chances are you have a shareholder loan account — even if you've never looked at it. It's one of the most important accounts on your balance sheet, and if it's not managed correctly, it can result in a significant and unexpected tax bill. In this episode I explain exactly how shareholder loans work and how to stay on the right side of the rules.

In this episode:

• What a shareholder loan account is and how it works
• The two directions — lending to the corporation vs borrowing from it
• Why borrowing from your corporation can trigger tax consequences
• The one fiscal year repayment rule — with a real numbers example
• The series of loans trap CRA watches for
• How dividends and salary interact with your shareholder loan balance
• Quebec — two sets of eyes on your books
• How to check your balance right now and what to do about it
• Why picking a withdrawal strategy is essential

About the host: Ronika Khanna is a Montreal-based CPA and CFA and the founder of Montreal Financial. She helps incorporated Canadians make better financial decisions about their corporations.

Resources:

• More resources for incorporated Canadians: montrealfinancial.ca/corporations
• Subscribe to my newsletter: montrealfinancial.ca/newsletter