Should I Invest Inside of My Corporation?

Today we're covering a commonly asked question - should I invest inside of my corporation? Here are 4 factors to consider:
How much of your original capital you should retain?
What is the tax rate on that income?
What's the purpose of this investment?
What are the risk factors in holding passive assets inside of your corporation?
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Пікірлер: 35

  • @AvalonAccounting
    @AvalonAccounting2 жыл бұрын

    Come for the info, stay for the strobe light party 😂

  • @philippklein1
    @philippklein12 жыл бұрын

    I also wanted to thank you for putting all that effort into the lighting etc making the videos super pleasent to watch!

  • @dianepaz
    @dianepaz2 жыл бұрын

    This was so helpful! Thank you!

  • @Parallel-Videos
    @Parallel-Videos2 жыл бұрын

    Great videos! Thanks for making them :)

  • @madslug7139
    @madslug7139 Жыл бұрын

    Love the video! Thank u! I'm still confused reloading of when is the right tike to incorporate, but it's definitely gived me a few points to consider :) !

  • @AvalonAccounting

    @AvalonAccounting

    Жыл бұрын

    Glad it was some help! Looks like you've checked out a few of our other videos as well. This one might be helpful too if you haven't watched it yet: kzread.info/dash/bejne/g2GMpaqtfcrbYdo.html

  • @goodmorningsteve
    @goodmorningsteve4 ай бұрын

    Super helpful!

  • @mbehzadian
    @mbehzadian2 жыл бұрын

    Very useful video, thanks for sharing the knowledge.

  • @AvalonAccounting

    @AvalonAccounting

    2 жыл бұрын

    So nice of you! Thanks for your comment.

  • @BeanWorks91
    @BeanWorks91 Жыл бұрын

    My goodness you are my new go to! Tremendous depth of knowledge delivered in such an absorbable form. Can't thank you enough for every single video you work on, post, and the much more fun approach to theory. Appreciate your team a massive amount!!!!!!!

  • @AvalonAccounting

    @AvalonAccounting

    Жыл бұрын

    Thank you! So glad you found us and are enjoying the content :)

  • @jeffb8824
    @jeffb88242 жыл бұрын

    Very helpful video! Lots to consider. If RSP's are maxed out and a person is taking dividends, could that be a good time to invest in the corp? I liked the strobe light effect!

  • @alexs3530
    @alexs35302 жыл бұрын

    Great info 👍

  • @lakhan911
    @lakhan9112 жыл бұрын

    Always love that you answer questions that would be so hard to find answers to elsewhere

  • @JummpMarketing
    @JummpMarketing5 ай бұрын

    Great Video 😃

  • @philippklein1
    @philippklein12 жыл бұрын

    Thank you so much! So grateful for the content you put out! I am an international Student (from Germany) in Montréal and work on starting a corporation here. Have been binge watching your videos and they are extremely helpful!!

  • @lincolnjiang5004
    @lincolnjiang50042 жыл бұрын

    Great video! Just a question. Is the BC small business tax rate 11% or 12% (1:12 in video) ? I'm getting conflicting information when I look online.

  • @francoischarbonneau9908
    @francoischarbonneau99082 жыл бұрын

    That was very helpful, thank you for the video. There is one aspect that remains unclear to me though and that is regarding the small business deduction. I understand that it is clawed back by the passive income, but what about a scenario where all that income is being paid out as dividends to the owner(s), does it still have the same effect?

  • @David.Bergeron

    @David.Bergeron

    5 ай бұрын

    I want to know the answer to this also!

  • @evgenypleskach8400
    @evgenypleskach8400 Жыл бұрын

    I am making trading business at stock exchange (stock options sailing mostly). My income is flexible. Generally, I earn from 70k to 90k annually. I am thinking to be incorporated buy I try to estimate level of potential problems. If I earn under 70k, everything is OK. I pay less than 11% of corporate tax. When I earn 90k, I pay about 12k personal tax totally. The corporation tax is about 8 800 in this case. I thinking to pay myself salary all under 60K and keep rest amount under 11% tax rate. I don't include in the model deductible costs such as office rent, equipment and etc (and some more expensive broker's services for corporations such as subscriptions and etc). Is it working model for your opinion? What do you think about? Do you see any hidden problems in this model?

  • @claudia-vp1kd
    @claudia-vp1kd Жыл бұрын

    Hi there, if you are buying land for development using equity from your personal home, does it make sense to buy the land as a corporation?

  • @jaymeburke8724
    @jaymeburke8724 Жыл бұрын

    what if the company was designed for investment purposes?

  • @aronlee9313
    @aronlee9313 Жыл бұрын

    If you start a holding company and have your corporate investments in side of it, can you deduct the accounting fees for that company 100% from the investment income be for paying the 50% ish tax on it?

  • @angelmenendez6170
    @angelmenendez6170Ай бұрын

    Thanks for the time and effort you put into this, your content is to the point and very easy to understand. What is your opinion in investing inside the company in an s&p 500 etf (10% return) , never sell. Create a margin account backed by your investment(borrowing against your investment) and pay back with the company earnings? Is that possible? If so, will it be a good tax strategy? Thanks in advance

  • @Taimur_SK
    @Taimur_SK2 ай бұрын

    What if the corporation was open only for the investment income. Would it then be considered active business?

  • @dashap9288
    @dashap92883 ай бұрын

    In terms of customers suing… wouldn’t insurance cover such risk?

  • @joeldepaolis3832
    @joeldepaolis38322 ай бұрын

    Are short term and long term capital gains treated in the same manner within a corporation with respect to investment income tax?

  • @shikhaacholia4820
    @shikhaacholia482010 күн бұрын

    How much do you charge for initial consultation?

  • @investigativeinterviewing4617
    @investigativeinterviewing4617 Жыл бұрын

    This guy is amazing!

  • @carlosbogarin4437
    @carlosbogarin4437 Жыл бұрын

    Hi, how about if is a IT service small business with an active trading side with a long term investment portafolio? How much will be the tax rate in Alberta on the trading and the long term portafolio?? Thanks a lot!! Great video

  • @AvalonAccounting

    @AvalonAccounting

    Жыл бұрын

    Hey Carlos, thanks for your question! Investment income earned within an Alberta corp would be taxed at around 47%. More info on corporate tax rates here: www.avalonaccounting.ca/blog/corporate-tax-rates-canada#toc-14

  • @shalealbao
    @shalealbao11 ай бұрын

    Thank you so much for this great content. You have amazing presentation skills! When starting, is it best to start with nominal share amount of $0.01 per share? Or start with the actual initial investment amount divided by 1000 shares, say $10 per share?

  • @mohammed.hajeesh4881
    @mohammed.hajeesh48812 жыл бұрын

    Hi I have some doubts regarding investment with in corporation. Is there a way I could take to you Thanks

  • @MauriceBoulard
    @MauriceBoulard Жыл бұрын

    I was told it used to be profitable to invest inside corp but by 2017 (or 2019), Justin and its gang passed a law to discourage this and then to tax it at the highest, Is that true?

  • @priuss6109

    @priuss6109

    11 ай бұрын

    2018