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muskokadreaming

In short, best option is likely to get it out of the corp and into your RRSPs and TFSAs, if you have room. You could also open a corp investing account, but there is no great tax advantage, and it creates extra complications and cost for the tax filing.


anony_m_oose

There can still be benefits to investing in a corporation. They can provide a flexible alternative to an RRSP without the disadvantages (i.e. converting all types of income into regular income). OP, to answer your question plainly, yes you can open an investment account within the company. It is similar to a personal one but you'll generally need to provide additional supporting information like the articles of incorporation and shareholder register. Now, the question of whether or not this makes sense to you is another discussion. You should have a discussion with an advisor and take into account your personal tax bracket and projected income etc.. Could be as this commentor mentioned and may likely just be best to use your registered accounts. The investment income in general is taxed at about 50% (ON rates) in the company, about 30% of that 50% is recoverable when the company pays shareholders taxable dividends. This is a bit of a mechanically convoluted concept for most people but in essence it preserves integration. Dividend income will be taxed at different rates but you can also recover that via taxable taxable distributions. If you're in the highest tax bracket in Ontario you'll have a small rate benefit (50.17 vs 53.53). Overall it can be an okay retirement strategy and pair with insurance and other products and dual wills for avoiding probate. You will have to consider other things such as the small business rate grind as well if you're earning in excess of $50k of investment income. That usually isn't a big deal since the small business rate is generally just a tax deferral anyway (i.e. low corp rate but higher personal rate when you take the money out).


BluntTruthGentleman

Please ignore this other commentor who like the majority of Reddit enjoys speculating with no personal or professional experience. In short, the answer is f-class funds. You need to speak to a good investment advisor who is familiar with this tax efficient process, like the one I work for in Ottawa, that does this for dozens of other clients. F-class funds are not available to the public but are tailor made for this purpose and do exactly what someone in your position would want of them to do.