Jayson Lowe explains three ways to pull money from your corporation, not just the two most people know about. The third method can save significant taxes while keeping capital in the company, but you need to structure it right from the start.
We've talked equipment, capital, cash flow, all the exciting stuff, the purchasing and the dollars moving back and forth. At some point a new business owner is going to ask themselves, how can I take money out of my corporation?
Yes. So yeah, okay, you said it best. Yeah. At some point the business owner is going to ask himself or herself, how soon can I take money out of the corporation? If you have the right plan and you are structured properly, you should be accessing capital from the corporation from inception. You just have to understand how to structure your affairs properly so you can do that. But when you are in a position to begin accessing capital, most business owners are taught there's only two ways to do it. You either get it through the form of a wage, like whether you're in America W2 or in Canada T4 or, or taxable dividends. But when the business owner is introduced to a third method, which has been around since Jesus was a cowboy, you'll learn how to gain access to capital from your corporation in a way where you save tax significantly. You're playing by all the rules. From a tax perspective. You're inbounds a hundred percent, but you're doing it in such a way where you're never interrupting the growth of capital inside of the company. So you're not depleting the company of any of its valuable resource called money, but you're still getting ready access to capital. You're just doing it differently. And the best way to discover how to do that is to get connected with the right person on my team.
So it sounds like there is a better way.
Oh, goodbye yourself.
Other than a salary or dividends a hundred percent.
Yeah, yeah. And that's the thing. I just, I can't figure out why business owners have only been taught two methods of doing it. There's a third method which is, I mean there's no wrong choice. Right. Like if you choose to take a wage, that's how you choose to get money. That's not wrong. It's just understanding the tax consequences of that and all the other consequences of doing it that way, no different than taxable dividends. Not that it's right or wrong, it's just a choice. So if you knew that you had a third choice that was going to give you a significant advantage, then logically thinking, how soon would you want to investigate what that third choice is? As a business owner, I'm like, I want to learn that now.
Yeah, like yesterday.
Yeah. Business owners have a strong, well, successful business owners, they have a strong bias to take action decide fast, act fast. That's one of our core values inside of our business. Gather data, decide quickly, move quickly. And as it relates to getting access to capital, there isn't a single business owner that we work with that would say, wow, I wish I could learn how to do that more slowly, with more frustration. I want to pay the most amount of tax, and I don't want to be in a position of total control. We wouldn't be working with that business owner. We'd be giving them a gift certificate for a complimentary psychiatric evaluation. Isn't that good, Ash? I knew you'd like that one.
Yeah, that was. That was pretty good.
Like, you know, you don't need our help. You need psychiatric care.
Well, hey, man, it is complimentary.
