Business Owners & Incorporated Professionals
Salary vs dividend strategy, corporate capital planning, holding company structures, and liquidity event planning for Canadian business owners.
Investing the money inside your corporation
If your corporation or holding company holds $1,000,000 or more, start with our corporate investment accounts page.
What is Planning for Incorporated Business Owners?
Planning for incorporated Canadians means coordinating how income is extracted from the corporation, how surplus capital is invested inside it, and how wealth moves between corporate and personal structures - as a system, not isolated tax decisions.
Key Corporate Planning Decisions
A decision-first map of the moves that matter most in this topic.
Salary vs dividends
- Coordinate RRSP room and CPP strategy
- Match draw to actual income needs
- Avoid decisions driven by tax alone
Corporate capital planning
- Define the purpose of retained surplus
- Set a written investment policy
- Manage passive income and SBD limits
Holding company structures
- Separate operating business risk
- Keep implementation legally clean
- Align structure with your long-term plan
Liquidity event planning
- Plan before the transaction closes
- Model after-tax proceeds carefully
- Integrate corporate and personal outcomes
Frequently Asked Questions
Salary or dividends - which is better?
It depends on income needs, RRSP goals, CPP participation, and how much you plan to retain. The best approach is a coordinated annual compensation strategy reviewed alongside your plan.
When should I set up a holding company?
A HoldCo can separate operating risk and organize surplus capital - but only makes sense when the legal structure and ongoing implementation hygiene support the plan. Complexity should match benefit.
How much capital should I keep in my corporation?
There is no threshold that fits everyone. The right amount depends on business risk, reinvestment needs, and personal draw requirements. Planning clarifies the role corporate capital plays in your total picture.
How should I plan for a liquidity event?
Plan before the transaction - not after. Tax structure, post-sale investing, and income planning should all be aligned before the deal closes so you can act on the outcome, not react to it.
Do I need a buy-sell agreement?
If there are multiple shareholders, yes. A buy-sell agreement clarifies what happens on death, disability, or departure and coordinates funding so the plan is executable, not just theoretical.
Insight Private Wealth
For business owners with $1M+ in assets who need comprehensive coordination across their corporate and personal finances, explore Insight Private Wealth.
Ready to pressure-test your plan?
A short first meeting to see if we’re the right fit, for both of us. Three questions, and we reply within two business days.