Let's say I have a small business that has been in operation for 10 years and it no longer makes any money. I've told all my customers that we will no longer take on any new business. So for the rest of the fiscal year, there will be no revenue and there will be negligible expenses. There's about $50k in cash and $100k of accounts receivable that were accumulated from previous years (ie. tax has already been filed for these assets in previous years, and do not contribute to taxable income as of today and the future). The business operates in Ontario, Canada.
As the only shareholder and owner of this small business, how should I "cash out" of my business so that I have money to start a second one? Should I pay myself a $150k salary that would be subject to the personal taxes? Or am I allowed to pay myself a $150k dividend out of the retained earnings (which I'm guessing won't be taxed)? SOmeone told me it is illegal to pay myself a $150k dividend when the company isn't making money?