ACCOUNTANT EXPLAINS How to Pay Yourself from a Corporation in Canada | Salary vs Dividends

00:00 Intro
00:21 Salary Pros
03:06 Salary Cons
04:40 Dividend Pros
06:07 Dividend Cons
08:01 How to Decide the Best Option for You?

Disclaimer: Note this video is not financial nor accounting/tax advice and should be used for entertainment purposes only. Consult with your own financial advisor, accountant and/or tax advisor for advice related to your specific situation.
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WHO AM I:
Gabrielle is a CPA and Tax Expert, as well as the founder of Balance + Wealth CPA, a licensed CPA firm that specializes in Tax. Prior to starting her business, Gabrielle worked as a Tax Manager at one of the Big 4 Accounting Firms for 7+ years, advising Fortune 500 companies. Gabrielle posts weekly videos on personal finance, business finance, and tax tips.
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*This description contains some affiliate links, meaning that I may earn a minimal commission if you click through and use these links (at no additional cost to you).

[FloraandNote]

Thank you for explaining this so clearly. It's so refreshing to find accounting/tax that's relevant to Canadians, and especially for small business and content creators! Love your videos and thank you for your hard work 😊

[njeereo]

Hi Gabrielle, thanks you for the info. Though, it would be better that you slow your speed just a tiny bit. Also it would be perfect if you put some example (calculation) for visual & numbers person like me. Again thank you & have a wonderful day.

[sbsamuelbitencourt]

Paying ourselves as entrepreneurs can be really tough. Thanks for clearing everything up =D

[ColinSemple]

Exactly what I was looking for. Well explained and helpful.

[mtL]

Your timing is uncanny as I was just beginning to research the difference between these two options and then just saw this video in my feed. Looks like dividends seem to be the way to go for my situation, or perhaps a split like you mentioned in the end. Time to annoy my accountant with some questions :) Thanks again!

[ulnczop]

Good Camper !!!
Good YouTuber !!!
Good Accountant !!!

[WhoIsAlicia]

Can you discuss transferring your personal property (i.e house) to your coperation?

[NaomiMacPherson-dvlq]

Great video. What happens if the corporation doesn't pay the owner a Salary or Dividends but draws the money out?

[mohammedosman]

Hi Gabrielle, thanks for this video! Its really helpful - Can you make a video on how to file T2-Short for a corporation with a net loss, please?

[MojtabaZare]

You did a great job in the video. However, you forgot to mention the ineligibility of the personal services business (PBS) for the lower tax threshold of small businesses and limited expenses for tax deductions (If the business falls into the PBS category). This can significantly affect the decision to pay ourselves as salary or dividends.
Now are there any calculators that can help us compare the two options to see how much taxes we have to pay in different cases?

[JadeCalver]

Hey Gabrielle, what equipment do you use for filming? I love your videos and the quality of the videos :)

[shukridahir]

Hi Gabrielle! Who is responsible for paying the payroll taxÉ The corporation will have to pay the salary tax right or is it the individual receiving the salary if they are an employee of their company (or the corporation). And what is the penalty if you have not remitted the payroll tax

[theok]

Hello Gabrielle, interesting channel!

My understanding on eligible dividends is that you start paying taxes after a certain amount. For instance Ontario is around 53000$. Your confirmation on this would be appreciated?

[MrOJohn]

Do you have this same info but for the US?

[righttolearnrighttolearn]

Hi teacher I have doubt (cansignment account) topic related how can I solve my queries with you?.