During the setting up and running a businessThere are two ways for a contractor to do this pay income, salary and dividends. While the majority will prefer to turn to salaries for simplicity's sake, others are looking to optimize their tax situation by combining salaries and dividends. In this article, you'll find everything you need to know about dividends, so that you can better understand how to pay them and why it's advantageous for a company to do so. contractor.
What are dividends?
Dividends are amounts paid out of a company's net income to shareholders. They are the basis for determining the value of a share and for they are a good signal for investors who want to spot a growing business. The idea is to share part of the profits with the company's owners, respecting the number of shares held by each.
From a tax point of view, dividends are more advantageousbecause they allow you to reach a larger share of the sum through taxation which is lower. A real asset which, when combined with salary, enables the contractor optimize your income while enjoying the benefits of both solutions.
Why pay yourself dividends?
Dividends are paid for many reasons from an entrepreneur's point of view. Here are the top 4 reasons why you should pay yourself dividends.
First of all, if you want to make a deduction of financial expenses on your taxable income, then dividends are ideal investment income.
Secondly, dividends allow you to pay less personal income tax, since taxation of this form of income is 48.7% or 40.1% by dividend type while the final tax bracket is at 53,3% for a salary.
If you have any low liquidity requirementsIn this case, you can make do with dividends. In fact, dividends are very advantageous in this case, since you can pay yourself up to 31,450 $ to federal and up to 18,180 $ in Quebec tax-free.
Finally, if your company has paid a tax on investment incomeBy paying dividends, you can recover up to 38.33 % of this amount.
Dividends for retirement
Dividends may not be paid out immediately. Net profits are then added to the profit account. Dividends can then be paid out at a later date, as follows in preparation for retirement for example, in order to recover the money remaining in the company's account. This allows you to invest in another type of investment or to meet your living expenses.
There is no cap on the amount you can withdraw from dividends, so you can accumulate money throughout your working life and then withdraw the funds if you want the money to come back to you to invest for your own account or to launch new projects.
Optimize your income with dividends
Dividends alone do not allow you to manage your finances in a totally optimized way, and neither does the payment of a dividend alone. salary. You'll need to play with both to get the most out of these solutions.. For example, you can choose to pay wagesYou can also use your dividends to recoup a portion of your investment income tax. This recovery will be made by the paying company, and all you have to do is pay a custodian fee.
SADC Achigan-Montcalm: Who are we?
To help you manage your business efficiently and exploit its full potential, the SADC offers you :
- an array of management consulting
- solutions corporate financing
- and a support for collective projects.
How to find us
As a regional player, we serve companies belonging to one of the following communities from 10 municipalities of the Montcalm MRC as well as municipalities belonging to the L'Assomption RCM (municipalities of L'Assomption, L'Épiphanie and Saint-Sulpice). We also operate for municipalities in the Rivière du Nord RCMSainte-Sophie and Saint-Hippolyte.
In other words, we serve the municipalities of Saint-Hippolyte, Saint-Calixte, Sainte Sophie, Saint-Lin-Laurentides, Saint-Julienne, Saint-Esprit, Saint-Roch-Ouest, Saint-Roch-de-l'Achigan, Saint-Liguori, Saint-Alexis, Saint-Jacques, Sainte Marie-Salomé, L'Epiphanie, L'Assomption and Saint-Sulpice. However, the municipalities of Repentigny and Charlemagne are not eligible for our financial assistance. Our offices are located at 104, rue St-Jacques in Saint-Jacques.
We believed in their project and they put their trust in us.
Since our creation in 1992, we have supported a large number of entrepreneurs in their business transfer, start-up or growth objectives. These include :
Solnor EnvironnementSolnor Environnement is an expert consultant for contaminated land and geology. Solnor Environnement's core business is the management of projects with a geological component, the analysis and study of soil and water, their decontamination and the environmental analysis of sites.
Lait de poule inc. the maternity and nursing specialist in l'Assomption, offering clothing and textiles for pregnant women and textiles to facilitate breastfeeding.
Brasserie L'Apothicaire of St-Jacques de Montcalm, whose mission is to support an ecosystem of regional microbreweries, and to help and contribute to the emergence and development of local players offering products of excellence.
The integration company Job Access Buffet whose core mission is to provide a gateway to the job market in the catering sector.
While these players belong to a wide variety of economic sectors, the fact remains that our approach, which focuses on the local level and on serious, well-thought-out support tailored to their objectives, has contributed to these successes. success stories. Behind each of these entrepreneurs was a ambitious project, and we are proud to present their success..
SADC can help you develop your business. Call on our team to bring your entrepreneurial projects to fruition.
