Canadian corporation strictly for investments in securities?
Question:
I have a personal investment account but I'd like to move the assets over to a corporate entity to possibly save on taxes (ie. lower taxes on preferred dividends, interest income, and of course, capital gains). I dont' anticipate needing to remove capital from the corporation (ie. there won't be a need for significant dividends in the reasonable future).
Are there any downsides to doing this? I know that I'd need to file annual reports and perhaps hire a CA/auditor, but is there anything else to be aware of?
Answer:
NOt muchof a downside, although it is a lot ato go through to save on a little bit of taxes (maybe). Depending on the structure of the corporation, you could well wind up paying as much or more in taxes. The taxes in Canada might be favorable, but if you are a US citizen and the only shareholder, they're still going to get you at some point
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