Everything Canadian Business Owners Need to Know about Dividends and How to Pay Themselves

What You Will Learn

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, while boosting your financial knowledge and giving you the confidence to make the right decision.

• Salary vs. Dividends Deep Dive: Understand the differences so that you can make informed decisions on the best compensation strategy for your situation.

• Step-by-Step Instructions: Easy-to-follow guidance for preparing and submitting your T5 tax forms via mail or online to the CRA, ensuring you're fully compliant so that you can save the cost of hiring an accountant, who can charge upwards of $150.00 to prepare your dividend slips

• DIY Dividend Registration: A straightforward process to register for a dividend account.

• Dividend Resolutions Simplified: Gain access to a template for drafting your dividend resolutions in your minute book and save time and legal fees.

• Tax Implications Explained: A simple to understand explanation of how taxes on dividends work , how they are taxed differently from salaries so that you can optimize how you pay yourself.

• Accounting Software Integration: Tips on how to accurately enter dividends into your accounting software and the relationship between dividends and shareholder loans to ensure that your books are accurate .

• Filing for Quebec Businesses: A dedicated chapter on filing the Quebec equivalent dividend declaration RL-3.

• And More! Additional tips and insights to make managing dividends easier and stress-free.

Who Will Benefit from This Book?

• Small Business Owners/Startup founders/Solopreneurs: Entrepreneurs, owner managers of corporations and small business owners who want to understand how to efficiently manage their compensation and tax obligations

• 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 so that they can manage clients' books more effectively.

• Financial Advisors: Professionals advising small businesses on financial matters will find the book a useful resource to deepen their expertise in small business taxation allowing them to offer more comprehensive guidance on compensation strategies.

• Tax Preparers and Accountants: 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.

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