Investments of funds in Business Account

Penny stocks

I would invest it in GIC's if you don't like worrying about losing money. If you decide to go this route, Oaken offers some of the best GIC rates out there.

Have the money you need (or could need) for operating needs in GICs and the "business investment account" (a savings account that pays a tiny interest rate usually).

That money which the business absolutely will not ever need, which is for your retirement, can be invested in longer term investments (ETFs, mutual funds, stocks) but that's where you're really going to want to consult with an advisor and get your tax accountant on side too, because it makes their job a lot more difficult.

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I was thinking of opening a brokerage TD account for my husbands business account. How do other folks with business accounts invest their funds? Anyone know what the tax implications are? Looking at over $100k in business funds.

Certainly not GIC. Interest in the hands of a corp is the worst kind of income tax wise.

AnnCook wrote: ↑ bump

I was thinking of opening a brokerage TD account for my husbands business account. How do other folks with business accounts invest their funds? Anyone know what the tax implications are? Looking at over $100k in business funds.

I think opening a brokerage account is a great idea if you have some cash that you want to put to work. All of the brokerages are a little different so you may want to familiarize yourself with each before committing to one. For example, TD is very flexible for investing but their GIC rates are not as competitive as some of the others.

In terms of taxes, depending on the size of business, you might be able to earn $50k in investment income before being taxed at higher rates subject to the new rules brought in a couple of years ago.

This is just some rough information but googling it should you get some more details.