Should I pay myself Salary or Dividends from my corporation? Which option is more tax efficient? If you’re a Canadian small business owner or incorporated professional, this video is for you!

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0:00 Intro
2:09 Cashflow in a Corporation
5:05 How to pay yourself Salary from your Corp
5:50 Canada Pension Plan (CPP)
9:05 Setting up Payroll with Revenue Canada
10:26 Salary: Pros & Cons
18:21 How to pay yourself Dividends from your Corp
20:12 Dividends: Pros & Cons
22:47 How to determine how much Salary or Dividend to pay?
25:35 Capital Dividend Account (CDA)
25:57 General Rate Income Pool (GRIP)
26:49 Eligible vs Ineligible Dividends
29:15 Optimal mix of Salary & Dividends
30:45 Summary

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

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1) Should I Incorporate? Incorporation Explained:    • Student FAQs #5: Should I Incorporate...  
2) Efficient Investing in a Corp / RDTOH:    • Efficient Investing in a Corporation ...  
3) Salary & Dividend Optimizer Calculator: https://www.looniedoctor.ca/canadian...
4) White Paper: Optimal Compensation, Saving and Consumption for Owners of Canadian Controlled Private Corporations (Braden Warwick & Ben Felix) https://www.pwlcapital.com/resources/...

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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.

#taxplanning #smallbusinessowner #incorporation