3

I own a small, privately-held corporation and am looking for ways to invest my corporation's money more effectively.

The problem is the government taxes passive investment income inside a corporation at a staggering rate of almost 50%. I do not want to invest this money personally either, as I want asset protection. So far the only direction that looks promising is some sort of a trust fund (~25% tax?) I haven't had better advice from a financial advisor.

Does anyone have better suggestions?

1

Since you are talking about a small firm, for the long term, it would be advisable to invest your money into the expansion - growth, diversification, integration - of your business.

However, if your intention is to make proper use of your earnings in the short term, a decent bank deposit would help you to increase the credit line for your business with the benefit of having a high enough liquidity.

You can also look at bonds and other such low risk instruments to protect your assets.

0

The issue only arises when the investments grow in size. A small amount won't trigger the higher tax rates.
If the amount is large enough, then consider using either: Insurance products that are 'segregated', or RRSPs in your own name after your business pays you wages, or Gifting to other family members.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.