Business Succession

Estate Freezes 101

An estate freeze is a tax planning technique that allows a small business owner to freeze the growth of their interest in their company in …

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Using Corporate Owned Life Insurance to Reduce Passive Income Taxation

Effective January 2019, new tax rules will come into effect that will have a dramatic impact on some small business owners. Starting in 2019, the Small Business Deduction Limit will be reduced by $5 for each $1 of passive income that exceeds $50,000 and will reach zero once $150,000 of passive income is earned in a year. This new tax rule may be leaving business owners wondering how they can redirect a portion of excess cash flow that would traditionally produce passive income, and subsequently some unfavorable tax consequences.

Corporate owned life insurance can offer a “two bird one stone” solution to business owners. If used appropriately, strategies such as these are a viable option for a private corporation with a substantial amount of excess income and a life insurance need. The information below provides an elementary overview of how life insurance can be used to defer tax and grow the corporation’s estate.

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Insurance Audit for the Business Owner

Many business owners understand the important role that life insurance plays in effective corporate planning.  Whether it is the funding of a shareholders’ agreement, life …

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Family Business Planning Strategies

67% are at Risk of Succession Failure If you are an owner in a family enterprise, the chances of your business transitioning successfully to the …

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What to do after selling your business

By James Dolan The contract is signed. The cheque is cashed. Your business has been sold or you’ve been given a golden handshake. Now what? It’s …

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Protecting Your Business

While most business owners realize the benefits of corporate-owned insurance, many do not realize that flexible life insurance products such as permanent whole life can …

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