Wednesday, November 2, 2011
What criteria should be used to determine whether to receive a salary or a dividends from a one-man company?
I live in Canada and I took early retirement about a year ago (freedom 55). To supplement income from a taxable investment portfolio that I am managing, I am also doing consulting work through a company that I have incorporated. (Note that I have decided to delay receiving income from my professionally-managed RRSP and LIRA accounts to alllow the principal amounts to grow tax-free for a few more years when I plan to fully retire). Taxwise, is it better to take the net revenues from the consulting company in the form of a salary, dividends or a combination? uming that my personal investment income is sufficient to meet my needs, should I still drawn down any retained earnings in the company over the (five) years until my full retirement?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment