How to pay yourself from your business? -
Tax Deductions
5 Overlooked Tax Deductions For Business
April 5, 2017
Manage Invoicing Effectively
Manage Your Invoicing Effectively
April 13, 2017
Show all

How to pay yourself from your business?

edmonton accountants

You started your business with the aim of earning money. How to pay yourself is a question that many business owners find difficult to answer. As a business owner, you can pay yourself in various ways such as salary, dividends, and shareholders loan. However, each way of paying yourself comes with its own advantages and drawbacks. Let us look at each of the ways in detail to provide you with clarity on the subject. 

 

 


Salary

Paying yourself in a salary means you receive personal income. Having a personal income is advantageous in many ways. You will be able to reap benefits of retirement plans like Registered Retirement Savings Plan (RRSP) and Canada Pension Plan (CPP). Your CPP retirement depends on how much and how long you were able to contribute to the plan. Contribution toward RRSP qualifies as an important tax deduction. Hence, by paying yourself in salary, you will be able to benefit from such plans. Also, the salary or the bonus you receive will qualify for a tax deduction for your corporation. Additionally, you can benefit from income splitting by paying salary to employees in relation (like spouse or kids). However, this method of payment also has certain drawbacks. Since salary is a personal income, it will be completely taxable on your personal tax return. Moreover, you will have to contribute both as an employer and employee towards CPP. 

Dividends

As a business owner, you can choose to pay yourself in dividends. Dividends are paid out of profits in proportion to your share of ownership in the corporation. Paying yourself in dividends frees you of administrative hassles. All you have to do is write a check to yourself and update the details in your corporation’s minute book. Additionally, you reduce your personal tax burden as dividends are taxed at a lower rate compared to salaries. However, with dividends, you cannot contribute to RRSP and it also eliminates your chances of obtaining several potential tax deductions. 

Shareholders Loan

Another way to pay yourself is by withdrawing money from the amount of capital invested in the business. The amount of capital mentioned includes the initial capital as well as future contributions and purchases made on behalf of the entity using your personal funds. You can withdraw required amounts on a tax-free basis as long as the amount does not exceed your initial capital contribution and you pay the prescribed interest as set by CRA. However, shareholders loan is a loan, you must ensure you have enough resources to meet deadlines. Moreover, if you withdraw too much money and fail to pay it back within the stipulated time as per regulations it will be included in your income.  

All of these are the different ways in which you can pay yourself. Whether you pay yourself in salary, dividend or shareholder’s loan depends on your business structure and certain factors such as taxation. Consulting an accounting and taxation expert will provide you with the best solution to how to pay yourself.

0 Comments

  1. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Wonderful info. Kudos!

    korean word for viagra viagra suppositories ivf ashermans
    viagra online
    natural viagra watermelon seed extract – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  2. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Regards. I appreciate it!

    ringtone viva viagra viagra lightswitch
    viagra pills
    geneic viagra – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  3. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    This is nicely expressed! !

    v ritable viagra buy viagra on-line
    cheap viagra
    viagra long term – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  4. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Appreciate it! An abundance of information.

    is generic viagra as good pfizer viagra turkey
    buy viagra online
    viagra online purchase – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  5. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Wow tons of useful data.

    viagra on line order new york kamagra about viagra
    buy viagra
    generic viagra soft-100 chewable – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  6. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You suggested this really well.

    canadian cheap viagra professional viagra
    buy viagra
    viagra priser – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  7. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Good info. With thanks!

    viagra lawsuits that have been settled u 2241 viagra
    viagra online
    viagra lung problems – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  8. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    With thanks, Quite a lot of tips.

    steroid and viagra tablets viagra average duration of hard on
    generic viagra
    generic of viagra color – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  9. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You expressed this effectively!

    viagra and celis wallgreens viagra cost
    viagra without a doctors prescription
    viagra before and after – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  10. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Thanks a lot! Valuable stuff!

    viagra cialis levitra canada what is better viagra or levitra
    generic viagra
    shopping online for viagra soft tabs – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  11. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Awesome stuff. Thank you.

    viagra search find cheap pages nature viagra
    viagra online
    buy locally viagra – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  12. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Effectively expressed truly! .

    viagra sales canada herbal link viagra
    viagra without a doctors prescription
    buy pfizer viagra – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  13. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Nicely put, Thanks a lot!

    viagra cialis bu safe paypal mexican pharmacy viagra
    cheap viagra
    suppliers of viagra – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  14. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Wonderful information, Thanks!

    cialis levia and viagra viagra swallow whole or let disolve
    generic viagra 100mg
    natural foods that sub viagra affects – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  15. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    This is nicely said. !

    pharmacy viagra testimonials viagra treatment
    viagra generic
    viagra slipped into drink – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  16. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Fine facts. Cheers.

    mexican viagra drink pantyhose vs viagra
    cheap viagra
    viagra banned commercial – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  17. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Thank you. I appreciate it!

    female viagra ingedients find search viagra edinburgh href
    viagra generic
    nc women viagra – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  18. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Valuable write ups. Regards.

    viagra active ingrediaent viagra 50
    buy viagra
    viagra exstacy cocaine – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  19. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Wow a lot of superb information.

    free viagra spinal cord injuries amyl nitrate erection viagra
    viagra for sale uk
    paypal pfizer viagra – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  20. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You actually suggested this terrifically.

    take viagra and using penis pump uk viagra sites
    buy viagra online
    sustiva viagra – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  21. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Great tips. Thanks.

    buy viagra in england can viagra affect the prostate gland
    viagra for women
    is women there a women’s viagra – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  22. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Terrific info. Thank you!

    viagra brisbane lions costs of viagra vs cialis
    generic viagra online
    aortic abdominal aneurysm and viagra – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  23. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Very good info. With thanks!

    target viagra hairy men viagra
    viagra generic
    viagra loss of vision – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  24. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You actually said that fantastically!

    woman takes viagra buy kamagra viagra
    viagra without a doctor prescription
    the effect of viagra – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  25. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Nicely put. Thank you!

    multiple viagra pill usage viapro better than viagra
    buy viagra online
    healthy loss viagra weight 20 – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  26. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Very good content. With thanks.

    lady era 100mg female viagra u 3312 viagra cialis
    viagra 100mg
    viagra and amlodipine – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  27. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Wow all kinds of amazing facts.

    finasteride viagra brand name viagra silagra silagra cumwithuscom
    generic viagra
    viagra uk 32 – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  28. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You said it perfectly.!

    viagra videa results buying viagra over the internet safe
    buy viagra online
    viagra extended release – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  29. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Terrific advice. Thanks a lot.

    subaction showcomments viagra optional online paul thorn viagra
    viagra for women
    viagra and hard erection – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  30. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Whoa tons of awesome information!

    wallgreen viagra viagra without a percription
    viagra generic
    aortic abdominal aneurysm and viagra – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  31. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Point well used!.

    internet viagra legality of light switch plate viagra
    viagra generic
    young viagra users – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  32. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Regards! Terrific stuff!

    ink pens viagra availability of viagra in new zealand
    viagra pills
    generic viagra online prescription – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  33. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Nicely put, Many thanks.

    viagra from canada legitimate tequila viagra mexico tiki bar
    generic viagra 100mg
    edinburgh viagra find pages sites search – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  34. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You actually said it fantastically.

    can viagra cause peyronie’s disease side effects if viagra
    buy viagra
    coupons viagra – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  35. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You made the point!

    viagra magazine how fast does viagra work
    viagra pills
    viagra erection procedure – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  36. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Nicely put. Kudos.

    viagra use for enlarged heart 2011 take viagra and cialis
    viagra for women
    discount phentermine and viagra – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  37. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You reported it fantastically.

    viagra online canda 1cialis levitra viagra vs vs
    generic viagra
    viagra plus something else – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  38. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Incredible a good deal of awesome advice.

    viagra for woen book buy online order viagra
    cheap viagra
    natural viagra substitutes – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  39. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Thanks a lot, Plenty of stuff.

    phone consulation viagra viagra cialis levitra online candian rx
    generic viagra 100mg
    viagra online drugstore – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  40. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Cheers, Loads of data!

    supplying viagra to the mob viagra time to work
    buy generic viagra
    real viagra cialis levitra – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  41. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Awesome advice. Cheers!

    3generic sildenafil viagra stay up viagra models name
    cheap viagra
    how does viagra cause blindness – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  42. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You suggested that well.

    what is generic viagra called porn industry viagra
    viagra 100mg
    viagra kit – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  43. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    With thanks. Excellent information.

    blood pressure medications similar to viagra miss viagra fest spring river
    cheap viagra
    the viagra song – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  44. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Great forum posts, Thanks!

    compare cialis and viagra does viagra work on women
    viagra generic
    generic viagra warnings – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  45. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You actually mentioned that superbly!

    free viagra on line find viagra cheap overnight mail
    viagra for women
    female viagra fda – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  46. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Nicely put, Many thanks.

    lawsuit pertaining to viagra g postmessage viagra smiley forum
    viagra for women
    mechanism of viagra – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  47. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You actually explained it exceptionally well!

    sites computer viagra edinburgh pages find ecstacy and viagra
    generic viagra online
    superdrol with viagra – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  48. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Thanks, I value this.

    viagra nyship best and cheapest viagra pills
    viagra 100mg
    viagra hearing loss – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  49. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You have made your point quite well!.

    cialis super viagra viagra for woen
    generic viagra online
    rapid viagra – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  50. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Amazing data, Regards.

    viagra femdom viagra cialis compare
    viagra 100mg
    chinese herbal viagra – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  51. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Amazing a lot of beneficial info!

    addiction to viagra viagra prescription on line
    generic viagra 100mg
    viagra alternative – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  52. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Regards, I enjoy this.

    viagra use for women buy viagra online a href
    viagra 100mg
    link watermelon and viagra – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  53. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Very good forum posts, Cheers.

    ratings or rankings tadalafil generic viagra how to inhance viagra’s effect
    buy generic viagra
    viagra and masturbation – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  54. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Thanks a lot! A lot of advice!

    cialis compared viagra viagra ergogenic use by ron lebard
    buy generic viagra
    using viagra too early – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  55. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You actually suggested it well!

    why viagra is bad viagra cut pills in half
    generic viagra online
    side effects if viagra – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  56. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Seriously tons of good info!

    viagra bcbs the language of viagra
    generic viagra 100mg
    buy discount viagra – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  57. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Very well voiced really! .

    viagra teens teenager buy herbal viagra jellys
    generic viagra 100mg
    viagra blood opens brain barrier – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  58. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Fine tips. With thanks!

    pain meds and viagra viagra for twenty six year old
    buy viagra online
    viagra advantages versus cialis – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  59. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Very good advice. Cheers.

    viagra aneurysm viagra india
    generic viagra 100mg
    viagra no perscription usa customs – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  60. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Fantastic content. Regards!

    viagra in hungary viagra dossage
    generic viagra 100mg
    3 citrate generic sildenafil viagra – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  61. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Incredible quite a lot of amazing facts!

    top rated natural viagra viagra for sexual dysfunction
    viagra for sale uk
    insurance companies covering viagra not birthcontrol – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  62. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Superb postings. Regards.

    generic viagra western union does viagra increase erection period
    generic viagra
    does viagra have an expiration date – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

  63. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    Many thanks, Excellent information.

    generic cialis free viagra 2003 cialis levitra market sales viagra
    generic viagra 100mg
    buying viagra prescription – https://genericviagrantx.com

    Davidbow
    TerenceSox
    VictorIdemY

  64. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You actually explained that terrifically!

    viagra license expires voto eletronico viagra eleitores passivos
    viagra without a doctors prescription
    viagra banned commercial charlie sheen – https://genericviagrarcp.com

    Davidbow
    TerenceSox
    VictorIdemY

  65. AndrewGlica says:
    Your comment is awaiting moderation. This is a preview, your comment will be visible after it has been approved.

    You actually explained that effectively.

    viagra cyalis levitra compared kardashians otc viagra pill
    viagra without a doctors prescription
    best life viagra – https://genericviagramsl.com

    Davidbow
    TerenceSox
    VictorIdemY

Leave a Reply

Your email address will not be published. Required fields are marked *