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The Chamber blog is a great place to find out the latest news, see event photos, and get great business tips - send in your good news notices to admin@barriechamber.com for inclusion in our Positive Press for Members tag.

Networking@Noon - Pay Less Taxes - Photos

Saturday, July 23, 2011

Robert Johnston from Investors Group spoke at our May Networking@Noon event, and he reminded attendees that a financial plan is not just an investment portfolio; it's a goal-based risk-adjusted plan. He had the following 5 strategies for reducing taxes that business owners pay:

  1. Pay your spouse and your children for work (bookkeeping, filing, etc.) - this will reduce your own personal income. Remember, the amount you pay must be reasonable, and the task must be believable.
  2. Think about incorporating - excess earnings can be retained in the corporation for lower rates and greater benefits. This option is not for everyone, but is certainly good for some businesses.
  3. Invest retained earnings in a diverse portfolio - for business rates, the most efficient vehicle is capital gains. Insurance for business is also an option; it can become a tax sheltered investment in the corporation that will never generate tax.
  4. RRSP is one of the best ways of saving - keep your income up so that you can maximize your RRSP contribution limit and have money for later. Speak to a financial advisor or your accountant about this option; sometimes it can be pretty complex.
  5. Prepare for the sale of your business when you retire - you need to have 5 year and 10 year plans, but you also need an exit strategy for retirement.



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