Business Owners & Professional Corporations
Key Challenges:
Continuity planning:
- Buy-sell insurance
- Key person insurance
- Borrowing to purchase equipment and property
- Finding flexible loan options
Employee strategies for retention, commitment, and engagement:
- Group health and dental plans
- Group retirement plans
Managing cash:
- High interest cash accounts
- Tax-efficient investing
Extracting cash:
- Tax free life insurance strategies that benefit from CDA
- Investment strategies that create capital gains (50% taxed) - eg. corporate class funds or buy stocks for long-term
Generating retirement income:
- Insured Retirement Plan (IRP) - a tax efficient strategy which borrows from the cash surrender value of a life insurance policy that is owned by your corporation
- Individual Pension Plan (IPP) - a personal defined benefit pension plan which you create for yourself
How to understand the value of your private business
Private companies make up a large proportion of businesses in Canada and across the globe; however, the average investor most likely cannot tell you how to assign a value to a company that does not trade its shares publicly. This article is an introduction to placing a value on a private company and the factors that can affect that value. Click here to learn more.
Taxation of investment income within a corporation
For individuals with cash or investments within their corporation, the tax cost of withdrawing these funds or winding up the corporation can be quite high. However, having the corporation invest in a tax-efficient manner can make a big difference to its net after-tax return; unfortunately the taxation of investment income within a corporation is not well understood. To learn more, please click here or contact us.
Identifying Potential Barriers to Selling Your Private Business
Selling your business should never be an impulse decision, and the process leading up to the sale can take years. It is critical for a business owner to have a realistic understanding of the steps involved to prepare for a potential or eventual sale, even if there are no current plans to sell in the next few months. Click here to learn more.