Corporate Structure

Dividends or salary? Jason works through the numbers behind this common question for incorporated owners. The solo episode illustrates how combined corporate and personal tax can change the comparison, what salary provides that dividends do not, and why the outcome varies by province and income level.

Jason examines whether incorporating is the right first move for a new Canadian business. This solo explainer describes how a sole proprietorship works, its advantages and drawbacks including unlimited personal liability, and outlines the factors, such as loss deductibility and growth, that shape the decision.

In this solo explainer, Jason outlines the Lifetime Capital Gains Exemption and how share structure affects whether a business sale qualifies. Viewers learn the tests a Canadian-controlled private corporation must meet, how passive assets can affect eligibility, and why the 24-month holding period makes timing a factor.

Luc Lapalme, Senior Principal at Mercer, walks through the firm's compensation planning survey and what employers expected for salaries in 2024. Listeners learn how benchmarking against market data informs raise budgets and why compensation planning is about total rewards, not base salary alone.

Jon Shell of Social Capital Partners introduces employee ownership trusts, a structure that lets an owner sell a business to employees through a trust. The discussion compares EOTs with ESOPs and co-operatives, reviews the UK's experience since 2014, and explains where Canada's own version stands.

Braden Warwick of PWL Capital shares his research on optimal compensation, saving, and consumption for incorporated business owners. Listeners learn why there is no single right salary-dividend mix, how the passive income threshold interacts with the small business deduction, and where Individual Pension Plans can fit.

Real estate lawyer Vic Gasparitsch raises concerns about Ontario's new personal real estate corporations. The episode explains what a PREC can and cannot do, how splitting income between agent and corporation creates accounting problems, and how simple the setup process currently is.

Scott Terrio, Manager of Consumer Insolvency at Hoyes Michalos, joins Jason to demystify insolvency. Learn what insolvency actually means, how consumer proposals work and who they apply to, and how business owners can think about protecting assets when finances go wrong.

Lee Fernandes, Senior Wealth Consultant at Cidel, gives Jason a general education on trusts. Listeners will learn the three certainties a trust must meet, common use cases for wealth protection and control, and how trusts are taxed in Canada.

Jason and Kim Moody of Moodys Gartner Tax Law walk through the fundamentals of Canadian corporate taxation. Learn how the small business rate applies to the first $500,000 of active income, how dividends and salaries differ, and what the Kiddie Tax rules mean when paying family members.

Jason sits down with Ted Maduri, Partner at DLA Piper, to break down how Canadian business owners can build a strong corporate structure from day one. Listeners will learn the trade-offs between sole proprietorships and corporations, when a shareholder agreement becomes essential, and why structuring with an eventual sale in mind matters.