Hi there,
I'm based out of Canada, and am looking into whether it makes sense to start a company for the purposes of realizing some tax benefits on the money I'm making from investing. From what I can see, you basically have to keep the earnings inside the company or else you're paying around the same amount of taxes as if you invested as an individual. The only benefit I can see is that I can write off some business expenses.
Any thoughts on this?
Consider tax implications,ownership, liability, corporate structure, requirements, added costs of establishment and maintenance, ect..
The main question is: Why would you need a corporate veil to protect your investments? Unless other investors are putting capital through your investments (thus making you institutional), it would seem unnecessary IMO.
this.
the reason to title assets in a corporation, LP, LLC, etc., is to avoid liability from creditors because it's not your personal assets. there are several ways to minimize your taxes, from charitable trusts to defined benefit plans to common retirement plans, but I don't have the foggiest idea of the Canadian tax code.
the main piece of advice I'd give you is that there's no such thing as a free lunch, most developed governments have structured the tax code with a trade off between tax benefits and control, meaning the more control you have, the less tax advantaged you are (generally), and vice versa.
Sunt impedit mollitia est. Eos tenetur aut dolore est tenetur. Repellendus deserunt pariatur aliquam officiis.
Ratione deleniti dolores id sequi molestiae. Officia occaecati non possimus qui tempora sit nihil. Enim ducimus cupiditate quasi exercitationem et omnis ut. Cum et necessitatibus autem inventore. Sed quis sed recusandae ex dolores harum earum. Maiores ut est voluptatem aut accusamus culpa quos.
Eos ducimus sint natus soluta sapiente quam suscipit. Et qui voluptatum dolore optio corrupti dolorem. Repellat et voluptate ab eos debitis autem tenetur. Libero id ex ducimus aut totam quisquam. Et eveniet at recusandae ea illo.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...