Kickstart Your Corporation - The Incorporated Professional''s Financial Planning Coach

A detailed look at financial planning strategies surrounding professional corporations for doctors, dentists, lawyers, business owners and other Canadian professionals.
 
If you're a doctor, a dentist, a lawyer, or a business owner--virtually any type of professional in Canada--you strongly need to consider how incorporating fits into your financial plan.
 
A good financial planner should acknowledge they have absolutely no control of the markets. However, taxes are completely controllable, and having a corporation is a powerful tool that allows professionals to control their tax bill. Using a mix of personal observations, real-life examples, and strategy evaluations, this book guides the professional along their path to using their corporation in the most efficient way.
 
Kickstart Your Corporation: The Incorporated Professional's Financial Planning Coach is your practical guide to controlling your tax bill and taking advantage of all that a Professional Corporation has to offer. Drawing upon decades of hands-on experience in wealth management, author Andrew Feindel provides clear and accurate advice on making the incorporation decision, setting up and investing inside your corporation, optimizing your salary and dividend compensation mix, valuing permanent insurance on your corporate balance sheet, using prudent leverage, weighing the pros and cons of active or passive investment management, using alternative strategies like a Capital Gains Strip, Individual Pension Plans and Retirement Compensation Arrangements, and much more. This must-have book:
* Provides Canadian professionals with an accurate and straightforward investment and financial planning guide to incorporation
* Covers the basics of incorporating for the professional and business owner, including a review of the process and the costs to incorporate, and the likely benefits
* Analyzes the best financial strategy for various situations
* Offers real-world advice on structuring compensation, risk management, borrowing to invest, and the role of trusts in professionals' financial plans
* Written by a senior vice president at an independent leading-edge wealth management firm
 
Kickstart Your Corporation: The Incorporated Professional's Financial Planning Coach is essential reading for any professional who has incorporated and is looking to maximize benefits, and those wanting to incorporate for the first time with expert guidance.

Sommario

Acknowledgments xvii
 
About the Author xix
 
Introduction: The Value of a Coach xxi
 
Chapter 1: Incorporation 101 1
 
Why Incorporate? 2
 
What Does It Cost to Incorporate? 2
 
What's the Process to Incorporate? 3
 
Written Consent 4
 
Articles of Incorporation 4
 
Payroll Remittances 4
 
Employment Contracts 5
 
Transferring Assets 5
 
Real Estate 6
 
Insurance Policies 6
 
Choosing Your Corporation's Year-End and Maintaining Your Corporate Records 7
 
When Does It Not Make Sense to Incorporate? 8
 
What If You Have No Small Business Deduction? 10
 
How Does Purchasing a Home Fit into My Incorporation Timeline? 11
 
Saving for a Down Payment: Incorporated and Non-Incorporated Options 11
 
Can I Purchase My Principal Residence through My Corporation? 12
 
What about Shareholder Loans? 14
 
Does a Professional Corporation Give Me Creditor Protection? 15
 
How Could I "Supercharge" My Charitable Donation? 16
 
What is the Lifetime Capital Gains Exemption (LCGE)? 17
 
Now That I Have Incorporated, Can I Deduct My Golf Membership Fees? 20
 
What Do I Do with My Corporation When I Retire? 20
 
Real-Life Case Example of Restructuring Shares 21
 
Chapter 2: The Compensation Decision: Salary or Dividends? 25
 
Understanding the Roots of the Compensation Question 26
 
Salary as Compensation 27
 
Dividends as Compensation 27
 
Dividend-Splitting with Family Members 28
 
The Old Rules: Pre-2018 28
 
The New Rules: Tax on Split Income--2019 and Afterwards 29
 
Tax Integration 33
 
Salary versus Dividend Examples 33
 
Do You Want to Put Your Savings in an RRSP or in Your Corporation? 35
 
The Value in the RRSP/Corporation Today 36
 
The Tax Characteristics of Growth on the Investments 37
 
Will We Pass Away with Funds in Our RRSP or Corporation? 40
 
Other Factors 41
 
Increased Financial Control 41
 
Psychological Factors 41
 
Creditor Protection 42
 
Future Tax Law Changes 42
 
Do We Want to Participate in the Canadian Pension Plan (CPP)? 42
 
Beware the Overpayment Trap 44
 
CPP Trends to Watch 44
 
Bottom-Line Considerations 45
 
Do We Have Investments Inside the Corporation? 45
 
What Are Some Exceptions to these Rules? 46
 
Small Business Deduction (SBD) 46
 
Child Care Deduction 47
 
SR&ED 47
 
Other Specific Considerations 47
 
Chapter 3: Investing Inside Your Corporation 51
 
Can I Invest through My Corporation? 52
 
What the Income Tax Act Says about Investing through a Corporation 52
 
Structuring Investments Inside the Corporation 53
 
Example 54
 
RDTOH (Refundable Dividend Tax On Hand) 55
 
Capital Dividend Account (CDA) 55
 
Example 56
 
New Passive Income Tax Rules 57
 
Reminder: Asset Allocation Still Matters 58
 
What Are Corporate-Class Investments? 60
 
The Power of Tax-Deferred Compounding 62
 
Working through the Example 63
 
Working through the Example 65
 
Rule Changes from Federal Budget 2016 66
 
Considerations with Corporate Class 67
 
Fees 67
 
Loss of Control 68
 
Little Fixed Income Exposure 69
 
Future Potential Rule Changes 70
 
What If I Want to Try Investing on My Own? 70
 
What If They Increase Capital Gains Taxes? 70
 
Chapter 4: Valuing Permanent Insurance on the Holisti

Info autore

ANDREW FEINDEL, CFA, CFP, CLU, CIM, CSWP, FCSI, FMA, CSA, HBA, is Senior Vice President and Investment Advisor at Richardson GMP. He is a graduate of the Richard Ivey School of Business and the Stockholm School of Economics. He is a Chartered Financial Analyst and Certified Financial Planner.

Riassunto

A detailed look at financial planning strategies surrounding professional corporations for doctors, dentists, lawyers, business owners and other Canadian professionals.

If you're a doctor, a dentist, a lawyer, or a business owner--virtually any type of professional in Canada--you strongly need to consider how incorporating fits into your financial plan.

A good financial planner should acknowledge they have absolutely no control of the markets. However, taxes are completely controllable, and having a corporation is a powerful tool that allows professionals to control their tax bill. Using a mix of personal observations, real-life examples, and strategy evaluations, this book guides the professional along their path to using their corporation in the most efficient way.

Kickstart Your Corporation: The Incorporated Professional's Financial Planning Coach is your practical guide to controlling your tax bill and taking advantage of all that a Professional Corporation has to offer. Drawing upon decades of hands-on experience in wealth management, author Andrew Feindel provides clear and accurate advice on making the incorporation decision, setting up and investing inside your corporation, optimizing your salary and dividend compensation mix, valuing permanent insurance on your corporate balance sheet, using prudent leverage, weighing the pros and cons of active or passive investment management, using alternative strategies like a Capital Gains Strip, Individual Pension Plans and Retirement Compensation Arrangements, and much more. This must-have book:
* Provides Canadian professionals with an accurate and straightforward investment and financial planning guide to incorporation
* Covers the basics of incorporating for the professional and business owner, including a review of the process and the costs to incorporate, and the likely benefits
* Analyzes the best financial strategy for various situations
* Offers real-world advice on structuring compensation, risk management, borrowing to invest, and the role of trusts in professionals' financial plans
* Written by a senior vice president at an independent leading-edge wealth management firm

Kickstart Your Corporation: The Incorporated Professional's Financial Planning Coach is essential reading for any professional who has incorporated and is looking to maximize benefits, and those wanting to incorporate for the first time with expert guidance.

Dettagli sul prodotto

• Autori: Andrew Feindel, Feindel Andrew
• Editore: Wiley, John and Sons Ltd
• Lingue: Inglese
• Formato: Copertina rigida
• Pubblicazione: 31.12.2020
• EAN: 9781119709138
• ISBN: 978-1-119-70913-8
• Pagine: 288
• Categorie: Guide e manuali > Diritto, professione, finanze; Scienze sociali, diritto, economia > Economia > Economia aziendale; Private Finanzplanung, Finance & Investments, Finanz- u. Anlagewesen, Personal Finance / Financial Advising, Private Finanzen / Beratung