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Six financial planning tips for business owners

Set your business up for success today and develop a financial plan for retirement Here are six tips for financial success. 1. Target top talent You want great employees that will help support your business success. These days, steady work and reasonable wages aren’t enough to attract and retain the best talent. Employee benefits can help […]

How to plan around the small business tax changes, effective 2019

June 28, 2019/0 Comments/in Financial planning, Insurance Planning, News, Retirement Planning /by admin

Starting this year, 2019, incorporated private business i.e. CanadianControlled Private Corporations (CCPC) are taking a different approach when planning their tax and investment optimization strategy to managing their wealth and fortifying their legacy. However, because the reduction will be based on “Adjusted Aggregated Investment Income” (AAII) from the previous year, passive income for 2018 can […]

Six financial planning tips for business owners

August 16, 2019/0 Comments/in Estate Planning, Financial planning, Insurance Planning, Retirement Planning, Wealth Management /by admin

How to plan around the small business tax changes, effective 2019

June 28, 2019/0 Comments/in Financial planning, Insurance Planning, News, Retirement Planning /by admin

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Six financial planning tips for business owners

August 16, 2019/0 Comments/in Estate Planning, Financial planning, Insurance Planning, Retirement Planning, Wealth Management /by admin

Set your business up for success today and develop a financial plan for retirement

Securing Your Business — Secure The Future of Your Business

Here are six tips for financial success.

1. Target top talent

You want great employees that will help support your business success. These days, steady work and reasonable wages aren’t enough to attract and retain the best talent. Employee benefits can help give you a competitive edge in the marketplace.

2. Find great rates

You want your money to work for you as much as possible. Look for banking solutions that help reduce borrowing costs and that earn the highest possible returns on all your short and long term investments.

3. Find tax efficiencies

Most business transactions–from employee compensation to business succession planning and asset protection–have tax consequences. Understanding and addressing tax implications can make a difference to the success of your business and the growth of your personal wealth.

4. Insure your human capital

Most small businesses have at least one person who is critical to the company’s operations—this could be anyone who helps run the business and is hard to replace. A loss or injury to key personnel could have far-reaching effects on the business’s survival; consider protecting yourself and others with Key Person Insurance.

5. Think future – yours and your business’

Many business owners rely on the sale of their business to fund their retirement and some are concerned with their business continuing after they leave. Combining succession planning with retirement planning can help you enjoy a financially secure retirement–whether you plan to sell or pass the business on.

6. Protect yourself and loved ones

In the case of critical illness, disability, or premature death, the impact on your family’s savings and lifestyle could be significant. Life and Living Benefits insurance products can help mitigate these risks.

Source: Manulife Financial; read more

How to plan around the small business tax changes, effective 2019

June 28, 2019/0 Comments/in Financial planning, Insurance Planning, News, Retirement Planning /by admin

Starting this year, 2019, incorporated private business i.e. Canadian
Controlled Private Corporations (CCPC) are taking a different approach when planning their tax and investment optimization strategy to managing their wealth and fortifying their legacy. However, because the reduction will be based on “Adjusted Aggregated Investment Income” (AAII) from the previous year, passive income for 2018 can impact the 2019 small business limit.

Passive income earned inside a corporation e.g. retained earnings, investment income ( such as interest, portfolio dividends, and taxable capital gains) in a Canadian active business can lower a corporation’s small business deduction (SBD). This reduction begins when a corporation (or a group of associated corporations) earns $50,000 of passive income in a year. Specifically, where passive income – known as “Adjusted Aggregated Investment Income” (AAII); exceeds $50,000 for a given year, the corporation’s access to the small business tax rate (10% federally) for the following year will be reduced.

Reduction in Small Business Deduction Limit Based on Passive Investments Income

The small business deduction (SBD) will be fully eliminated when passive income reaches $150,000. For each dollar of passive income over $50,000, the SBD will be reduced by $5. That’s once AAII reaches $150,000, none of the corporation’s active Business Income (ABI) will be ineligible for the small business rate and instead will be taxed at the general corporate rate, as illustrated in the graph. Courtesy by CI Investments.

The following strategies can reduce the impact of the new passive investing rules;

1) Invest for capital gains.

2) Buy and hold to defer capital gains

3) Consider corporate-owned tax-exempt life insurance

4) Pay sufficient salary to maximize RRSPs & TFSAs

5) Consider establishing an Individual/Personal Pension Plan (IPP/PPP)

Download to the document below to learn more!

Tax-Planning-Using-Private-Corporations-Download

Half Sized Blog Element (Single Author Style)

Half Sized Blog Element (Multi Author Style)

Six financial planning tips for business owners

How to plan around the small business tax changes, effective 2019

Six financial planning tips for business owners

How to plan around the small business tax changes, effective 2019

Full Sized Blog Element (Big Preview Pic)

Six financial planning tips for business owners

Set your business up for success today and develop a financial plan for retirement

1. Target top talent

2. Find great rates

3. Find tax efficiencies

4. Insure your human capital

5. Think future – yours and your business’

6. Protect yourself and loved ones

How to plan around the small business tax changes, effective 2019

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