Professionals
Making a professional corporation do more than defer tax
Incorporating is the easy part. The value comes from how compensation, retained earnings, investments and insurance are arranged inside the corporation over the following twenty years.
The levers
What we work through
Compensation design
Salary and dividend mix, family compensation where permitted, and the RRSP room each choice creates.
- Salary vs dividends
- RRSP room
- CPP considerations
Retained earnings
How corporate savings are invested, and how passive income rules affect the small business deduction.
- Passive income limits
- Account structure
- Corporate class options
Corporate insurance
Policies owned by the corporation for protection, estate liquidity or tax-efficient accumulation.
- Corporate-owned life
- Capital dividend account
- Health spending accounts
Drawdown
Getting money out efficiently in retirement — the part most plans leave until it is too late to change.
- Retirement income order
- Estate wind-up
- Post-mortem planning
Common questions
Should I still be paying myself a salary?+
Often at least enough to create RRSP room and CPP entitlement, but it depends on your corporate income, your spending needs and the province. It is a calculation, not a rule.
Is passive income inside the corporation a problem?+
It can reduce access to the small business deduction. The question is how much passive income you generate and whether some of it belongs in a different structure.
Do you replace my accountant?+
No. We coordinate with them. They own the tax filing and advice; we implement the investment and insurance side around it.
Review your corporate structure
Bring the corporate financials and we will show you where the money is currently sitting and why.
Investco Financial is licensed in British Columbia and Alberta for insurance and related financial services. Information on this page is general in nature and is not individual advice. Coverage, eligibility and tax outcomes depend on your own circumstances and the terms of the contracts issued.