Answer:
Balance your Dividend/Salary Mix:
As a small business owner, you are entitled to withdrawing cash from your corporation as either a dividend or salary. Both have their perks and downfalls. Ultimately, it is up to the owner to determine what mix will maximize their earnings (based on each owner’s unique circumstances).
Know your eligible expenses:
Money spent on your work as a small business owner can be claimed as a tax deduction under reasonable circumstances.
Keep track of your money:
As a small business owner, tax prep begins the moment you make income through the business.
Consider paying income taxes every month
If you have trouble budgeting or simply don’t like the idea of one massive payment at the end of each year, consider paying income taxes monthly.
Consider a Health Spending Account (HSA)
Every year, small business owners turn to traditional health insurance because it is so widely marketed. However, you only want to insure low-probability, highly catastrophic events like your property burning down.
Paying salary to your family (Income Splitting)
The key is reasonable conduct. Any salary paid out will count as a business deduction. However, the salary must reasonably match the services provided.
Apprenticeship Job Creation Tax Credit
If your business hires tradespeople, consider applying for the apprenticeship job creation tax credit.
Create a seperate company for tax-deferred investing
Outside of registered retirement plans, you normally invest with after-tax dollars. Instead, you can move funds out of your business to a related holding company.
Explanation:
