Tax

Planning for Your Corporate Taxes

April 12, 2021

You work hard for your money (cue Donna Summer). You’ve been smart and built a team of advisors, some of whom have helped you to incorporate your business. Incorporating your business can provide immediate tax relief, a layer of creditor protection, and may also allow for your business to succeed well into the future. But with success comes the question: What do you do with your growing cash?

As your business grows, cash begins to accumulate. Choosing to take it out of the company leaves you facing a hefty tax bill. When accounting for the taxes paid on corporate income, plus the taxes paid on dividends, you’re looking at around 47-48% in total taxes paid in Alberta. On the other hand, investing inside of your company used to make a lot of sense, but with taxes on passive assets currently over 48%, and new rules on passive income for small businesses, it is becoming a less favourable option. What is a business owner to do? Luckily, you have options.

We’re on your side

Sometimes, it is not a particular concept that fits the bill but making sure you have someone on your side that speaks your language. The team at Sagium is happy to help you with your corporate tax, retirement, and succession planning to ensure your hard-earned business assets are assured.

Contact your Sagium Wealth Strategist if you need support. We are here to help!

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