Salary vs Dividends — It's Not Just About Tax

Salary or Dividends? It's Not Just About TaxOne of the most common questions I get from incorporated business owners is whether to take a salary or dividends. But that's not quite the right question. The right question is: what's the best compensation strategy for your business and your circumstances? In this episode I walk through all the factors you need to consider to make that decision well.In this episode:Why the salary vs dividends question is more nuanced than most people thinkCash flow and stability — salary vs dividend differencesTax installments and timingRRSP contribution room and why it mattersCPP and QPP — the forced retirement savings argumentHow your corporate strategy affects your compensation choicePersonal financial goals — FHSA, RRSP, and mixed strategiesWhy Quebec incorporated professionals should pay close attentionThe tax concept of integration and what it means for your decisionResources:More resources for incorporated Canadians: montrealfinancial.ca/corporationsSubscribe to my newsletter: montrealfinancial.ca/newsletter