Investing

Incorporating for investments

  • Last Updated:
  • May 10th, 2021 6:26 pm
[OP]
Jr. Member
Apr 28, 2009
122 posts
25 upvotes

Incorporating for investments

Hi RFDealers,

I've maxed our my registered accounts and I'm looking at investing a few hundred Ks in equities as well as in private companies.

Is it worth it to incorporate and invest through the corporation to reduce the tax burden?

Also, my profession allows me to incorporate, but I'm salaried at a company, so I'm not sure if this is also an avenue I can explore.

Any resources or contacts in this field would be welcome.

Thanks for your help!
3 replies
Deal Addict
User avatar
May 11, 2014
4775 posts
5815 upvotes
Iqaluit, NU
In general, no especially for just the sole purpose of investments. The conversation changes if you are talking about high income and if you can service as a professional corp. If you are earning quite a bit each year, you should look into this.

You can still invest non-registered and be tax efficient. You can accumulate equity investments and pay minimal taxes until disposition or collect tax efficient dividends. This is a good route especially if you do see early retirement on the horizon. If your income is high and you do anticipate accumulating a lot of non-registered assets, a UL life insurance policy might be considered.

Base incorporation on your income situation, not the investments themselves.
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Banned
Apr 30, 2021
26 posts
13 upvotes
This is the kind of thing where you would need to get some professional help, like a CPA. You will need professional help to set up the corporation in the first place and prepare the corporate tax returns every year. I would say for most people it is not worth the hassle.

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