JAJT
Legendary Contributor
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
Canadian here.
I recall my accountant discussing paying yourself in dividends as opposed to a salary for certain tax benefits. I don't recall the details but I think salary and dividends are taxed differently for yourself and/or your corp.
Word of advice: DO NOT take advice that applies to the USA and assume it applies to Canada. We are not the same, especially as it pertains to difference between a US LLC and a Canadian corporation.
What you need is an accountant.
Not google. Not forum advice. Not a mentor. Not financial blogs.
An accountant.
An accountant is one of the biggest assets that you NEED on your team as a business owner.
You don't know what you don't know - they do.
In the short time since I've had an accountant they saved me the mistake of taking on a 50% tax burden because of the setup I wrongly assumed would work in Canada. They saved me having to report to the IRS needlessly. They saved me the risk of an audit and risking my personal assets based on how money moved through my business that I assumed was no big deal. They've advised me against accepting cash from a third party into my business which would have opened myself up to a can of worms with the CRA and instead they helped me organize it in a tax free way that the CRA doesn't care about.
Accountants are worth their weight in gold.
I recall my accountant discussing paying yourself in dividends as opposed to a salary for certain tax benefits. I don't recall the details but I think salary and dividends are taxed differently for yourself and/or your corp.
however I'd think US laws are similar.
Word of advice: DO NOT take advice that applies to the USA and assume it applies to Canada. We are not the same, especially as it pertains to difference between a US LLC and a Canadian corporation.
What you need is an accountant.
Not google. Not forum advice. Not a mentor. Not financial blogs.
An accountant.
An accountant is one of the biggest assets that you NEED on your team as a business owner.
You don't know what you don't know - they do.
In the short time since I've had an accountant they saved me the mistake of taking on a 50% tax burden because of the setup I wrongly assumed would work in Canada. They saved me having to report to the IRS needlessly. They saved me the risk of an audit and risking my personal assets based on how money moved through my business that I assumed was no big deal. They've advised me against accepting cash from a third party into my business which would have opened myself up to a can of worms with the CRA and instead they helped me organize it in a tax free way that the CRA doesn't care about.
Accountants are worth their weight in gold.