Quote:
Originally Posted by 8sPOT
Maybe my accountant just isn't that good then, seems I do a lot of the work and decision making. There are no startup costs, I am essentially contracting myself so I will start with a good income right off the bat. Not overly concerned with borrowing as we have our mortgage, vehicles etc, and a LOC just in case.
Was more curious about what others have done, my calculations seem to indicate I am better of paying my wife and I in dividends regardless of the amount. Not concerned with RSP room or CPP eligibility, this will most likely not be a long term thing.
Thanks for the input everyone, have worked for 'the man' for all my life so this is pretty new territory for me.
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There are so many things between this post and your original one that you need to talk with an accountant that goes over this stuff with you. Dividends can be the way to take money out of the corporation, but if you're doing it personally and are the only shareholder, it usually doesn't make the most sense. Dividends can be used for income splitting throughout your family, which it sounds like you might want to do. If your accountant isn't giving you this advice, you'd sound like you be better served with one who is more versed in this type of business. Yours sounds more like a bookkeeper.