Self employment and its benifets , amd downfalls

[kellyandhislimo]

FYI each share holder is entitled to $32000/year dividend. Just sayin. I've been self employed for 8 yrs and it works out great

 

[Free Rider]

I don't think there is a set limit on how much in dividends are allowed. I pay myself and my wife a set wage every month and take dividends out for whatever else we need. We pay source deductions on the wages every month. I am a class A shareholder and she is a class B shareholder so at the end of the year the accountant divides the dividends between the 2 or us so it works out best in our favor tax wise. Just be aware that dividends don't count towards income on your T4 so if you don't take a wage you will show no income at the end of the year. Good luck getting a loan with no income. If you max out your RRSP at the end of the year you will probably be close to breaking even on the taxes you will owe on the dividends.

 

[GYMBRAT]

Im a strong believer in being a corporation in the just liabilities. If something catastrophic happens your company gets sued not you!! Most people as a proprietor have all their personal stuff involved and can be devastating. With a corporatoin you can still be all in but have that distance before the sheriff come knockin..... Im no accountant but had this explained to me as a young man since know-body figured i could make it!!

this! I owned a few Oil Field trucks for a few years, good cash lotsa fixing grs etc but it was worth it. I still have a few trucks on Van Isl moving freight, all highway, less cash but NXT to no overhead.

 

[storm1972]

well thanks for the input guys , im going to read alot more into it, and figure out if its best for me to go this route or not, appreciate all your input. thanks