For an owner-manager, the business and personal tax picture are connected. Decisions about compensation, retained earnings, investments, family ownership and retirement can affect both the corporation’s resources and the owner’s long-term financial position. Barr LLP advises entrepreneurs, professionals, family enterprises and other private business owners on tax structures that support their actual business plans.
Corporate and shareholder structures:
- We advise on corporations, partnerships, holding companies, family trusts and multi-entity groups.
- We consider how a structure affects access to the small business deduction and the lifetime capital gains exemption.
- Rules on associated corporations, passive investment income, taxable capital and share qualification require planning well before a sale. We work with your accountant to monitor relevant tax attributes.
Compensation, distributions and retained wealth:
- Salary and dividends carry different corporate and personal tax consequences. The right balance depends on cash needs, retirement savings, payroll obligations and your broader plan.
- We advise on shareholder loans, bonuses, dividends and transactions involving related parties.
- Income splitting is subject to detailed restrictions. We assess whether a proposed payment or distribution is commercially and legally supportable, and how the tax on split income rules may apply.
- As wealth accumulates, owners may want to separate operating risk from investments or excess cash. A holding-company or reorganization strategy may help, but transfers between corporations can engage complex rules.
Succession and long-term planning:
- Business succession may involve a sale to an outside buyer, a management buyout, an intergenerational transfer, or a gradual transition, each requiring different preparation.
- We help owners consider estate freezes, shareholder buyouts, tax-deferred rollovers, family trusts and post-sale structures.
- For professional corporations and regulated businesses, planning must also fit applicable ownership and governance rules.
Good owner-manager tax planning is coordinated and timely. Whether the immediate issue is a new ownership arrangement or a transition several years away, we focus on practical decisions that preserve flexibility and support the business.
