For incorporated Ontario business owners
You work hard for your assets. We make sure that you keep and grow them.
More than 85% of Canadian entrepreneurs leave their retained earnings parked inside their corporate structure. It keeps your personal income tax low, but it creates a quiet leak on your corporate balance sheet.
The good news? You don't have to pull the money out personally to fix it.
- Small business rate
- 12.2%
- General rate
- 26.5%
Combined federal and Ontario corporate rates. Passive = adjusted aggregate investment income (AAII) of the associated group in the prior year.
Corporate tax diagnostic
See what your passive portfolio is costing your operating company.
Enter your retained earnings and portfolio mix. The diagnostic estimates your AAII, SBD erosion, and the annual tax drag on your holdco.
Calculator not loading? Open the diagnostic directly.
The approach
Three levers. One objective: keep more of what your corporation earns.
Corporate-Class Reallocation
Interest and foreign dividends are taxed at the full 50.17% and count dollar-for-dollar toward AAII. Corporate-class structures can convert that distribution profile into deferred capital gains and return of capital — only half of a realized gain is included in AAII.
Interest → capital gains
SBD Protection
We model your associated group’s AAII each year and manage realizations to keep it under the $50,000 threshold — preserving the full $500,000 business limit so active income stays at the 12.2% small business rate.
AAII < $50,000
Retained Capital Compounding
Capital that isn’t lost to annual tax compounds on a larger base. We coordinate CDA, RDTOH and eventual dividend strategy with your accountant so the deferral you build inside the corporation survives the trip out.
Deferral, not just reduction
Who we work with
Built alongside your accountant, not around them.
We work directly with your CPA and legal counsel so investment decisions inside the corporation line up with your year-end, compensation mix and estate plan.
- Medical & dental professional corporations
- Owner-managed operating companies
- Holding companies with $1M+ retained earnings
- Consultants and incorporated professionals
Important information
The content on this website is for general informational and educational purposes only and does not constitute legal, accounting, tax or investment advice, nor a recommendation or solicitation to buy or sell any security. Tax rates referenced (including the 50.17% combined federal–Ontario rate on Canadian- controlled private corporation investment income and the Small Business Deduction grind-down rules) are based on legislation in effect at the time of writing and are subject to change.
Results from the diagnostic tool are illustrative estimates based on the inputs you provide and simplified assumptions; they are not a guarantee of future tax outcomes or investment returns. Individual circumstances vary. You should consult a qualified tax professional and your registered advisor before acting on any information presented here.