The Incorporated Canadian

Salary or Dividends? It's Not Just About Tax

One of the most common questions I get from incorporated business owners is whether to take a salary or dividends. But that's not quite the right question. The right question is: what's the best compensation strategy for your business and your circumstances? In this episode I walk through all the factors you need to consider to make that decision well.

In this episode:

• Why the salary vs dividends question is more nuanced than most people think
• Cash flow and stability — salary vs dividend differences
• Tax installments and timing
• RRSP contribution room and why it matters
• CPP and QPP — the forced retirement savings argument
• How your corporate strategy affects your compensation choice
• Personal financial goals — FHSA, RRSP, and mixed strategies
• Why Quebec incorporated professionals should pay close attention
• The tax concept of integration and what it means for your decision

Resources:

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

Just Incorporated? 7 Things to Do in Your First 90 Days

You've taken the leap and incorporated your business — congratulations. But incorporation is just the beginning. In this episode I walk through the seven essential things you need to put in place within your first 90 days to make sure everything runs smoothly and you don't end up paying more than you should down the road.

In this episode:

• Why incorporation requires a mindset shift
• Setting up your corporate bank account and credit card
• Choosing and setting up accounting software
• Registering for sales taxes (GST, HST, QST)
• How to pay yourself — salary vs dividends overview
• Tracking expenses and keeping records
• Understanding your tax filing obligations
• Finding the right accountant

Resources:

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

Should You Incorporate? The Pros, Cons and Tax Reality

One of the most common questions I get as a CPA and financial consultant is whether to incorporate. In this episode I walk through the key considerations so you can make an informed decision.

In this episode:

• What a corporation is and how it differs from a sole proprietorship
• Limited liability and when it matters
• Credibility, professionalism and access to capital
• How corporate tax deferral actually works — with a real numbers example
• The lifetime capital gains exemption
• The cons: administration, costs, complexity and losses

Resources:

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