Articles

Incorporated business owners can choose how to pay themselves. Some receive limited input from their accountant regarding their compensation strategy, or they simply continue using the same approach without occasionally reconsidering it.

Very long-time Canadian MoneySaver readers may recall that I wrote several articles between 1994 and 2003. Back in the day, I wrote about contrary investing and the Dow Jones Industrial Average (“Beat the Dow”). Years later, I contributed stories talking about the inclusion of Private and Alternative Equities in your investment plan. After a five-year hiatus, I’m delighted to be back.

An increasing number of professionals, consultants, investors, and entrepreneurs are choosing to incorporate. Approximately 89% of Small and Medium Enterprises (SMEs) are incorporated1. It’s not just for the huge companies with over 500 workers. Many small businesses with 1-9 employees can successfully incorporate. Not only does it provide legal protection, but it's also a powerful tool to build wealth, protect your brand, build your business’s reputation, optimize taxes, and gain strategic control over your financial future.

In recent years, self-employment has grown in popularity across Canada, with many individuals embracing entrepreneurship as a path to professional independence. The Canadian government provides many tax write-offs to Canadians, which may be desirable. However, the process of paying taxes and writing off expenses can be confusing for a newly self-employed entrepreneur. If you are newly self-employed, one of the most crucial aspects of your business to understand is taxation requirements as outlined by the Canadian Revenue Agency (CRA).