Everything Canadian Business Owners Need to Know about Dividends and How to Pay Themselves
Are you small business owner, administrator or accountant/bookkeeper trying to navigate the complexities of dividends and wanting to ensure that you are tax compliant?
One of the most important aspects of tax, as it relates to small business corporations, is a solid understanding of owner compensation. In doing so, it empowers you to make informed decisions that optimize your tax position, ensure compliance, manage cash flow effectively, and plan for the future.
This comprehensive guide helps you to understand everything you need to know about small business dividends and provides step by step instructions on preparing and submitting your dividend declarations i.e. T5 slips to Revenue Canada . Additionally, it can help you save the cost of hiring an accountant, who can charge upwards of $150.00 to prepare your dividend slips, while boosting your financial knowledge and giving you the confidence to make the right decision.
Inside you’ll discover:
Salary vs. Dividends Deep Dive: Explore the nuances between salaries and dividends, including vital considerations for deciding on the most beneficial owner compensation strategy and gain expert guidance on assessing the best compensation option for your unique situation, helping you make informed decisions.
Step-by-Step Instructions: Easy-to-follow guidance for preparing and submitting your tax forms via mail or online to the CRA, ensuring you're fully compliant.
DIY Dividend Registration: A straightforward process to register for a dividend account
Dividend Resolutions Simplified: Gain access to a template on drafting your dividend resolutions
Tax Implications Explained: A clear explanation of how taxes on dividends work and how they are different from salaries
Accounting Software Integration: Tips on how to accurately enter dividends into your accounting software.
Filing for Quebec Businesses: A dedicated chapter on filing the Quebec equivalent RL-3, catering to the specific needs of Quebec-based businesses.
And more…. (see image of table of contents)
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Note: If you purchase the print version available at Amazon, I am happy to send you a complimentary PDF. To claim your free PDF, simply send me an email, along with a proof of purchase, to contact@montrealfinancial.ca.
Types Of Users That Will Benefit
Small Business Owners: Entrepreneurs and small business owners who want to understand how to efficiently manage their compensation and tax obligations will find this guide essential. It empowers them to make informed decisions regarding their salary and dividend distributions, optimizing their tax position and enhancing their understanding of financial planning.
Administrators and Office Managers: Individuals responsible for the day-to-day management of small businesses, including financial paperwork and compliance, will benefit from the step-by-step instructions on preparing and submitting tax documents. This knowledge streamlines the process, saves time, and ensures accuracy in their filings.
Bookkeepers: Bookkeepers working with small businesses will gain a deeper understanding of how dividends are treated from an accounting and tax perspective. This book will enhance their ability to manage clients' books more effectively, particularly in relation to owner compensation.
Startup Founders: Founders at the early stages of their venture can leverage the insights provided to set up efficient and compliant compensation structures from the start. This foresight can prevent common pitfalls and ensure a solid foundation for future growth.
Financial Advisors: Professionals advising small businesses on financial matters will find the book a useful resource to deepen their expertise in small business taxation, enabling them to offer more comprehensive guidance on compensation strategies.
Tax Preparers and Accountants: Even experienced tax preparers and accountants may benefit from the book's detailed guide to preparing T5 and RL-3 slips, along with insights into strategic considerations for owner compensation.
DIY Entrepreneurs: Entrepreneurs who prefer to manage as much of their business operations internally, including financial and tax matters, will appreciate the guide's step-by-step approach to handling their compensation and tax filings.
Reviews:
Being new to receiving Canadian Business dividends, I found this book to be one of the best Canadian explanations of small business dividends on the market. I was able to read the entire book in under 2hours and truly understand dividends and how to plan our salary-dividend mix including how to file it. A great addition to any small business owner's playbook whether you are a beginner or a seasoned professional.
Wayne T.
Although I am also an accountant, I found this little book amazingly helpful.
Deepak C.
I thoroughly enjoyed it, and it will prove to be invaluable as I start my consulting business (incorporated), which I will run out of my home. This book was extremely well written, informative, and to the point for anyone wishing to start their own business and questioning how to pay themselves.
Peter B.
It is a must for small business owners. The content is easy to understand and very helpful. A true gem.
Calgary Dad
I bought three of your books and I must say that from what I have read so far, they are amazing, and by far, the best resources I have read so far, on my journey.
Georgia G.
I was reading the book you wrote, "Small Business and Your Dividends" and thought it was really helpful in understanding how the dividend filings work for Quebec and under the CRA.
Betty M.
About The Author
As a small business accountant, I have prepared and filed numerous dividend declarations for my small business clients over the years. I wrote this guide to help small business owners and administrators who want to understand how dividends work , what are the different types of compensation options i.e. salary vs dividends for shareholder owners and guidance on how taxes work with dividends vs salary.. The chapters on registering and preparing the T5s provide step by step instructions on to register for a dividend account and file your own dividend declarations either manually or online. You can save the costs of hiring an accountant and submit the declarations on your own schedule.
If you have any questions about this guide, please contact me and I will get back to you as soon as possible