5 Corporate Tax Strategies Every Ontario Business Owner Should Know

Tax planning is not about avoiding your obligations — it's about making sure you're not paying a dollar more than you legally owe. For Ontario corporations, the opportunities are significant.

1. Income Splitting Through a Family Trust

If structured properly, income can be distributed to lower-income family members, reducing your overall household tax burden while keeping profits within the family unit.

2. Maximize the Small Business Deduction (SBD)

Canadian-Controlled Private Corporations (CCPCs) pay a reduced federal corporate tax rate on the first $500,000 of active business income. Ensure your structure qualifies and you're not accidentally losing this benefit.

3. Capital Cost Allowance (CCA) Timing

Purchasing equipment or vehicles before your fiscal year-end can create deductions that reduce taxable income for that year. The timing of these purchases matters significantly.

4. Salary vs. Dividend Mix

Determining the optimal split between paying yourself a salary versus dividends from your corporation can reduce CPP contributions while maintaining RRSP contribution room.

5. Lifetime Capital Gains Exemption (LCGE)

If you ever plan to sell your business, proper planning now can shelter hundreds of thousands in capital gains from tax when the time comes.

Our advisors at Empire Wealth Management Group work with you year-round — not just at tax time — to ensure your structure is always optimized.