Tax﹠Estate Planning
for Corporations
Strategic tax and estate planning designed for business owners and incorporated professionals. We help coordinate corporate wealth, succession considerations, tax efficiency, and long-term estate objectives around the future of your business and family.
Why Corporate Wealth
Can Start Losing Ground
Building retained earnings is only part of the equation. Without a deliberate structure for how those dollars are held, grown, and eventually transferred, several tax forces can begin working against the wealth you have built.
The Headwind
Passive investment income earned inside a private corporation can be taxed above fifty percent in many provinces, creating an ongoing drag on corporate investment growth.
The Threshold
Once passive investment income exceeds $50,000 in a year, the corporation can begin losing access to the small business deduction on active business income.
The Exit Toll
Corporate dollars may face tax inside the company and another layer of tax when those funds are eventually paid out personally or transferred through an estate.
The issue is not that wealth was retained inside the corporation. The issue is whether there was ever a plan for what happens to it next.
Where Corporate Wealth Can Lose Ground
Retaining wealth inside a corporation can create powerful opportunities, but without deliberate planning, tax exposure and inefficient transfer strategies can quietly erode what you have built. Rates and outcomes vary by province, structure, and individual circumstances.
Passive Investment Income
Passive investment income earned inside a private corporation can be taxed above 50% in many provinces, creating an ongoing drag on growth.
The ＄50,000 Threshold
Once annual passive income moves beyond $50,000, the corporation can begin losing access to the small business deduction on active income.
Tax When Wealth Exits
Corporate dollars can face tax inside the company and another layer of taxation when those funds are eventually distributed personally or transferred through an estate.
Compliance vs. Structure
Filing taxes and keeping a corporation compliant is different from deliberately designing how corporate wealth is held, grown, accessed, and eventually transferred.
Protecting The Deduction
Proper planning considers how corporate assets and investment income interact with the small business deduction and the long-term tax efficiency of the operating company.
Estate And Family Transfer
A coordinated strategy considers how wealth may ultimately reach you in retirement, your family through the estate, or both—while keeping liquidity and access part of the plan.
Go deeper into the numbers.
Explore the full Trapped Capital guide to understand the forces affecting retained corporate wealth, the structures available to address them, and the questions every incorporated business owner should be asking.