Accessing Corporate Earnings

One of the financial planning issues that business owners face is how to access their corporate earnings in a tax efficient way.

There are 5 standard methods:

• Salary
• Dividend
• Shareholder Loans
• Transfer Personal Assets
• Income Splitting

There are also unique ways utilizing life insurance and critical illness insurance to access your retained earnings.

With life insurance, there’s a strategy known as a Corporate Insured Retirement Plan (CIRP). The CIRP is an arrangement between a corporation and an insurance company that protects the corporation’s owners. The benefit allows the owners to invest corporate profits in a tax-free investment for the purpose of increasing retirement income. A CIRP can also be used as part of a succession planning program, allowing business owners to transfer their surplus shares to heirs or key employees, or can be used as a source of emergency funds.

Please contact us to learn how we can get more money in your pocket than in the government’s.