(Scroll down for infographic)
We work with a lot of self employed people and business owners. One of the biggest issues that comes up for profitable businesses is how to access your corporate earnings personally and not lose 1/2 of the money to taxes. This infographic outlines 5 of the main ways to get money out of your company and gives details on each.
At the bottom you'll see 2 strategies using various forms of insurance to save a bundle in taxes or potentially access your funds personally, tax-free.
Here are the 5 standard methods of withdrawing money from your company:
- Salary
- Dividend
- Shareholder Loans
- Transfer Personal Assets
- Income Splitting
The 2 unique ways of utilizing life insurance and critical illness insurance to access your retained earnings are outlined at the bottom. These require some expertise and you will need to work with qualified advisors (aka Safe Pacific) in order to set these up.
You can see a video about the "Shared Ownership Critical Illness" strategy on our website. We've got it listed as the EHSP strategy.
There are a few options to access your corporate money personally via life insurance strategies. These require some additional knowledge about your personal and corporate situation.
Please contact us to learn how we can keep more money in your pocket and not the government's.
Contact Us
At Safe Pacific Financial, we specialize in helping Canadian business owners, incorporated professionals, and investors structure life insurance for maximum wealth protection, tax savings, and business growth.
If you would like to discuss whole life insurance or investments, we’re happy to chat and see if we can be a good fit to work with you. Fill out our contact form and we will get back to you within 24 hours on business days.
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