The Shareholder Loan — What It Is and How Not to Get Burned

The Shareholder Loan — What It Is and How Not to Get BurnedIf you're an incorporated Canadian business owner, chances are you have a shareholder loan account — even if you've never looked at it. It's one of the most important accounts on your balance sheet, and if it's not managed correctly, it can result in a significant and unexpected tax bill. In this episode I explain exactly how shareholder loans work and how to stay on the right side of the rules.In this episode:What a shareholder loan account is and how it worksThe two directions — lending to the corporation vs borrowing from itWhy borrowing from your corporation can trigger tax consequencesThe one fiscal year repayment rule — with a real numbers exampleThe series of loans trap CRA watches forHow dividends and salary interact with your shareholder loan balanceQuebec — two sets of eyes on your booksHow to check your balance right now and what to do about itWhy picking a withdrawal strategy is essentialResources:More resources for incorporated Canadians: montrealfinancial.ca/corporationsSubscribe to my newsletter: montrealfinancial.ca/newsletter