Are You Incorporated?
Owning your Insurance Policies in your Corporation may be beneficial!
Insurance, properly structured, in a business owner’s corporation may be a key tool to mitigate the impact of the ever changing tax changes for business owners in Ontario.
Tax changes impacting business owners in 2019 and beyond makes proactive financial planning essential. Your financial plan must be amended now to:
- Replace the loss of sprinkling dividends, and,
- Higher taxation of passive income over $50,000.
Life, Disability and Critical Illness Insurance for a business owner is fundamental to protecting your business continuity, family and lifestyle desires. Today, corporately owned insurance can be tailored to address your business and family needs, using tax deferred profits in the corporation.
There are many advantages of owning your insurance policies in your corporation, such as:
- Premiums are paid with after-tax corporate dollars
- Opportunities to unlock cash from inside your corporation at tax preferred rates
- Provides retirement income and estate preservation
- Strategic Planning Solutions:
- Key person insurance
- Funding buy–sell agreement
- Business loan protection
Corporately owned insurance may provide significant advantages to a successful business owner. Care in planning must be taken as there are complexities to consider as well.
Business owners should be altering their financial plans and corporate strategies to address these two new tax changes commencing January 2019.
For a complimentary second opinion, fill out your information and we would be happy to get back to you.