How to Pay Yourself from a Corporation in Canada? Salary vs Dividend Calculator (Pt 2 of 2)

This video is a walkthrough of a Salary vs Dividend calculator to determine how much salary, dividend, or both to to pay yourself from your Canadian Controlled Private Corporation (CCPC). The calculator was developed by Dr. Mark Soth (The Loonie Doctor Blog). Access and follow along here: https://www.looniedoctor.ca/ccpc-inco...

𝗧𝗼𝗽𝗶𝗰𝘀 𝗖𝗼𝘃𝗲𝗿𝗲𝗱:
0:00 - Intro
3:23 - Spending Plan calculation
4:21 - Income Smoothing to Plan for Large Purchases
6:16 - Income Split vs Cost Split with Spouse
7:25 - TFSA, RESP, RRSP contribution strategy
12:49 - Corporate Cashflow & Tax Planning
15:42 - Corporate Passive Income
19:15 - Corporate Notional Accounts
21:15 - Capital Dividend Account (CDA)
22:03 - General Rate Income Pool (GRIP)
23:01 - Eligible Refundable Dividend Tax On Hand (ERDTOH)
23:38 - Non-eligible Refundable Dividend Tax On Hand (NERDTOH)
27:46 - Personal Income Sources other than Corporation
28:35 - How much Salary/Dividend to Pay
33:06 - Total Taxes & Excess Personal Cashflow
34:47 - Income Split with Spouse

This presentation was created by Dr. Mark Soth from The Loonie Doctor Blog. Dr. Soth and Dr. Stephanie Zhou are co-lecturers in the Financial Literacy and Practice Management curriculum for residents and early-career doctors in Ontario.

𝗢𝘁𝗵𝗲𝗿 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀:
1) Salary vs Dividends Pros/Cons:    • SALARY vs DIVIDENDS: How to Pay Yours...  
2) Should I Incorporate? Incorporation Explained:    • Student FAQs #5: Should I Incorporate...  
3) Efficient Investing in a Corp / RDTOH:    • Efficient Investing in a Corporation ...  
4) Asset Allocation ETFs:    • What is the BEST Asset Allocation ETF...  
5) White Paper: Optimal Compensation, Saving and Consumption for Owners of Canadian Controlled Private Corporations (Braden Warwick & Ben Felix) https://www.pwlcapital.com/resources/...

𝗗𝗶𝘀𝗰𝗹𝗮𝗶𝗺𝗲𝗿𝘀:
This content is for education and entertainment purposes only. Any information, views, and opinions expressed are solely those of the presenter and are not a substitute for financial advice specific to your personal situation. Dr. Stephanie Zhou has no personal conflicts of interest to disclose and was not paid by any parties to conduct this interview of Dr. Mark Soth. Her channel (Breaking Bad Debt) is monetized and may feature ads due to a change in Youtube policy to include ads regardless of whether monetization is turned on or not.
Dr. Mark Soth's blog (looniedoctor.ca) receives a small commission from Qtrade Direct Investing from accounts opened using the affiliate link on the site. The commission goes towards offsetting the costs of running his blog.

#incorporation #smallbusinessowner #smallbusiness