Navigating Dividends Doesn't Have to Be Complicated
Are you a Canadian small business owner trying to figure out the best way to pay yourself from your corporation? This essential guide breaks down the complexities of dividends into simple, actionable steps so you can:
Choose the right compensation strategy: Salary vs. dividends—learn what works best for your business and your taxes.
Avoid costly mistakes: Understand the rules and maximize the benefits of dividends without fear of penalties.
File your T5 slips with ease: Follow step-by-step instructions to confidently handle the dividend declaration submissions to Revenue Canada (and save yourself the cost of hiring an accountant)
Whether you’re just starting your business or looking to refine your approach, this book simplifies the process, helping you maximize your income while staying compliant with CRA requirements.
Small Business Owners/Solopreneurs/StartupFounders: Entrepreneurs and small business owners who want a better understanding of owner compensation and the best way to structure it. Also, those of you who prefer to manage as much of your business operations internally, including financial and tax matters, will appreciate the guide's step-by-step approach to handling your compensation and tax filings (T5 slips etc).
Administrators And Bookkeepers will gain a deeper understanding of how dividends are treated from an accounting and tax perspective. Additionally, it will enhance their ability to manage clients' books more effectively, particularly in relation to owner compensation.
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: Experienced tax preparers and accountants will benefit from the book's detailed guide to preparing T5 and RL-3 slips, along with insights into strategic considerations for owner compensation.
Salary vs. Dividends Deep Dive: Understand the crucial differences and 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.
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.
Tax Implications Explained: A simple to understand explanation of how taxes on dividends work and how they are taxed differently from salaries.
Accounting Software Integration: Tips on how to accurately enter dividends into your accounting software and the relationship between dividends and shareholder loans.
Filing for Quebec Businesses: A dedicated chapter on filing the Quebec equivalent RL-3,
Save the cost of hiring an accountant, who can charge upwards of $250.00 to prepare your dividend slips
And More!
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