FAQ | Corporate Investing

Corporate investing operates under different tax rules than personal investing. Key differences include:

• Tax rates: Corporate tax rates differ from personal tax rates, and the type of income (interest, dividends, capital gains) matters more
• Tax mechanisms: Corporations have access to mechanisms like RDTOH, GRIP, and CDA that don't exist for personal accounts
• Integration: Corporate income is eventually taxed at the personal level when dividends are paid, creating an integrated tax system
• Constraints: Rules like the SBD "grind" can affect corporate tax rates based on passive investment income
• Structures: Corporate-class funds and other tax-efficient structures are designed specifically for corporate accounts

For more detail, see our article on The SBD "Grind" & Your Corporate Portfolio or Corporate Investing vs. Personal: When to Invest in Each.

Generally, maximize RRSP contributions first (especially if you're in a high tax bracket), then TFSA, then invest surplus corporately. However, this depends on:

• Your personal tax bracket vs. corporate tax rate
• Time horizon (corporate deferral works best over 10+ years)
• Whether you need funds before retirement
• RRSP/TFSA contribution room
• Corporate surplus available

The optimal strategy is usually to coordinate both corporate and personal accounts. See our article on Corporate Investing vs. Personal: When to Invest in Each for more detail.

We work with corporations of various sizes. While there's no strict minimum, our approach is most effective for corporations with:

• Surplus cash of $100,000 or more available for investment
• Ongoing business operations generating consistent income
• A long-term perspective (5+ years) for wealth building

If your corporation has less than $100,000 in surplus, we can still provide guidance on structure and strategy, even if full portfolio management may not be appropriate yet. The key is having a plan that scales as your business grows.

Corporate accounts can hold a wide range of investments, including:

• Mutual funds: Including corporate-class funds designed for tax efficiency
• ETFs: Exchange-traded funds for diversification
• GICs and fixed income: For capital preservation and liquidity
• Stocks and bonds: Individual securities (depending on account type)
• Alternative investments: Depending on your risk tolerance and objectives

The key is structuring the portfolio to optimize for corporate tax considerations:favoring capital gains, using corporate-class funds, and managing income types to minimize tax drag.

Mutual funds are offered through WhiteHaven Securities Inc. Other investment products may be available depending on your account type and objectives.

A corporate class fund is a mutual fund structured within a corporation rather than a trust, allowing interest, foreign and dividend income to be transformed into capital gains for tax efficiency.

They are most effective in taxable environments, which is why they are commonly used in corporate accounts and non-registered personal or trust accounts. Corporate class funds don't eliminate tax, but they change the timing and character of taxation, reducing annual taxable distributions.

For a detailed explanation, see our article on Corporate Class Funds and the Powerful Magic of Tiny Changes.

Yes, we work with incorporated business owners in both Québec and Ontario. While tax rates and some rules vary by province, the core principles of corporate investing and tax optimization apply across both provinces.

We're licensed in both provinces and understand the provincial variations in:

• Corporate tax rates (small business and general rates)
• Personal tax rates and dividend tax credits
• Provincial tax integration
• Estate strategy considerations

See our Montréal and Toronto pages for more information about serving each region.

The SBD (Small Business Deduction) "grind" is a tax mechanism that reduces your small business deduction when your corporation earns passive investment income above $50,000. For every $1 of passive income above $50,000, you lose $5 of small business deduction.

This can increase your corporate tax rate from the small business rate (~12-15%) to the general rate (~26-27%) on active business income, creating significant tax drag.

Strategic portfolio design:focusing on capital gains (only 50% counts toward the grind), using corporate-class funds, and managing income types:can help minimize the grind's impact while still growing wealth.

For a detailed explanation, see our article on The SBD "Grind" & Your Corporate Portfolio.

If you're already over the threshold, focus on:

1. Reducing future passive income (corporate-class funds, life insurance)
2. Maximizing capital gains treatment where possible
3. Considering whether a HoldCo structure could help (provincial rules permitting)
4. Working with your CPA to optimize the structure

The $50K threshold is a strategy consideration, not a reason to avoid corporate investing. The tax deferral benefits often still outweigh the SBD reduction when managed strategically.

See our article on The $50K Rule: How Passive Income Affects Your Small Business Deduction for more detail.

RDTOH (Refundable Dividend Tax on Hand) is a refundable tax account that tracks taxes paid on passive investment income. When you pay eligible dividends, you can receive a refund of some of these taxes, effectively reducing the corporate tax rate on passive income.

GRIP (General Rate Income Pool) tracks income taxed at the general corporate rate (not the small business rate). Income in the GRIP allows you to pay "eligible dividends" that qualify for enhanced personal tax credits, resulting in lower total tax.

Understanding these mechanisms helps you optimize dividend timing and type to minimize total tax across corporate and personal levels.

For more detail, see our article on RDTOH & GRIP for Owner-Managed Corporations.

The CDA is a notional account that tracks tax-free amounts available to be paid as capital dividends. When capital dividends are paid from the CDA, they are received tax-free by shareholders, making this one of the most powerful tax-sheltering tools for corporations.

The CDA increases when your corporation:

• Realizes capital gains (50% of the gain is added)
• Receives life insurance proceeds (net of adjusted cost base)
• Receives capital dividends from other corporations

This allows you to extract corporate wealth tax-free, which is particularly valuable for estate strategy and wealth transfer.

For a comprehensive guide, see our article on CDA 101: The Capital Dividend Account Explained.

No. Provincial dividend tax credits vary:

• Ontario: ~10% DTC on eligible dividends
• Quebec: ~11.9% DTC on eligible dividends
• Result: Total tax can differ by 2-3% between provinces

Capital gains also integrate differently (50% inclusion rate for personal tax, corporate tax on 50% of gains), creating integration gaps and deferral opportunities.

See our article on Tax Integration: How Corporate and Personal Taxes Connect for more detail.

Yes, absolutely. We regularly coordinate with clients' existing professional teams, including CPAs, lawyers, and notaries. This coordination is essential because:

• Tax strategies must align with your CPA's tax strategy
• Estate strategy structures (trusts, estate freezes) require legal input
• Corporate structures (HoldCo/OpCo) need both tax and legal coordination
• Insurance strategy must integrate with estate and tax strategy

We work as part of your professional team, not as a replacement. We provide investment and insurance expertise while your CPA handles tax compliance and your lawyer handles legal structures. The key is ensuring everything works together.

Many of our clients appreciate this collaborative approach, as it ensures all aspects of their wealth strategy are aligned.

Life insurance can play several important roles in corporate tax strategy:

• CDA building: Life insurance proceeds received by a corporation are added to the CDA, allowing tax-free extraction of wealth
• Estate liquidity: Provides tax-free funds to pay estate taxes and other obligations
• Buy-sell funding: Funds buy-sell agreements for business succession
• Key person protection: Protects the business from the financial impact of losing a key person
• Tax-sheltered growth: Permanent life insurance can grow tax-sheltered within the policy
• Estate freeze companion: Provides funds to pay capital gains tax on frozen shares

Insurance products are provided through iAssure Inc. We work with multiple insurers to find the best fit for your situation.

See our Life Insurance for Business Owners page or our article on Life Insurance as a Corporate Asset Class for more information.

Generally, no. Unless it is required by a lender for collateral (and only the pure cost of insurance portion), premiums are paid with "after-tax" corporate dollars. However, the benefit (the death payout) is generally tax-free to the corporation and can be paid out as a tax-free capital dividend.

Yes, we're independent and work with multiple major life insurance companies. This allows us to:

• Compare products: Evaluate policies from different insurers to find the best fit
• Optimize pricing: Find competitive rates and terms
• Match features: Select policies with features that match your specific needs
• Provide objective advice: Recommend products based on merit, not manufacturer

We're brand-agnostic, which means we focus on what's best for you, not what's best for any particular insurer.

An Estate Freeze locks in your tax liability at today's business value and passes all future growth to the next generation. There's no fixed age, but the ideal window is typically between ages 45-65, when you have significant business value but still expect substantial growth.

You don't lose control:you exchange Common Shares for Preferred Shares that carry Voting Rights, so you can keep 100% of the vote even if you own 0% of the growth.

Most freezes cost $15,000-$25,000 in legal and accounting fees, but the tax savings are often in the millions. Life insurance typically plays a role to cover the tax bill on frozen shares.

For a comprehensive guide, see our article on The Anchor of Legacy: Mastering the Estate Freeze.

A HoldCo/OpCo structure separates your operating business (OpCo) from your investment assets (HoldCo). This provides:

• Asset protection: Separates business risk from investment assets
• Tax deferral: Investments held in HoldCo don't affect OpCo's small business deduction
• Succession strategy: Enables estate freezes and multi-generational wealth transfer
• Flexibility: Allows different share classes for different family members

You can set up a HoldCo even if you're already incorporated through a Section 85 Rollover (tax-deferred). It will increase accounting fees (approx. $3k-$5k/year extra), but the tax benefits usually dwarf this cost.

For a detailed explanation, see our article on The Fortress Strategy: Why Successful Families Use a HoldCo/OpCo Structure.

Our process typically follows these steps:

1. Discovery Call: A focused 15-minute conversation to determine mutual fit
2. Initial Assessment (1-2 weeks): Structured review of your current situation
3. Detailed Analysis (2-4 weeks): We model scenarios, test assumptions, and evaluate structures across time
4. Recommendation Presentation: Clear set of recommendations with explanations and rationale
5. Implementation Support: Coordinated execution with your CPA, lawyer, and product specialists
6. Ongoing Review: Annual or quarterly reviews based on complexity and life stage

Throughout the process, we coordinate with your existing professionals (CPA, lawyer) to ensure everything aligns.

For more detail, see our How We Work page.

As of now, no separate fees are charged for discovery calls, educational sessions, reviews, or ongoing strategic discussions. These conversations are part of the advisory relationship.

For investment solutions, compensation is paid through the dealer, WhiteHaven Securities Inc., which receives a portion of the management fees paid to the investment fund provider. A portion of that compensation is paid to the advisor by the dealer.

For insurance solutions, compensation is typically paid by the insurance company at the time a policy is issued, with smaller renewal commissions in subsequent years.

The cost of these products is embedded in the product itself and does not change based on the advisor selected.

For a detailed explanation, see our Compensation & Disclosure page.

Review frequency depends on your needs and preferences, but typically:

• Portfolio reviews: Quarterly or semi-annually for most clients
• Strategy reviews: Annually, or when significant changes occur (business changes, tax law changes, life events)
• Ad-hoc reviews: Available whenever you have questions or concerns

We believe in regular, structured reviews to ensure your strategy stays aligned with your goals and circumstances. However, we also respect your time and won't over-schedule meetings.

The review process includes discussing performance, reviewing goals, identifying changes, and making adjustments as needed.

For an initial 15-minute intro call, you don't need to provide detailed information. We'll discuss:

• Your corporation's situation (industry, size, structure)
• Your goals and concerns
• What you're hoping to achieve
• Whether there's a fit for working together

If we decide to proceed, we'll gather more detailed information, which may include:

• Corporate financial statements
• Current investment statements
• Tax returns (if relevant)
• Insurance policies (if reviewing insurance)
• Information about your professional team (CPA, lawyer)

We'll let you know exactly what we need and why, and we'll work with you to gather it efficiently.

We're independent and brand-agnostic. This means:

• Product selection: We can recommend products from multiple manufacturers, not just one
• Objective advice: We're not incentivized to push specific products
• Best fit: We focus on finding the best solutions for your situation, regardless of manufacturer

Mutual funds are offered through WhiteHaven Securities Inc., which provides access to a broad range of fund families, not just proprietary products.

Insurance products are provided through iAssure Inc., and we work with multiple major insurers to find the best fit.

This independence allows us to provide objective, client-focused advice rather than product-focused sales.

No. The practice is independent and not employed by any single bank or insurer. Solutions are selected based on suitability and long-term fit, not affiliation.

Compensation occurs when solutions are implemented, but recommendations are not tied to a single provider. The focus is on structures that remain appropriate over time, not frequent changes.

We apply the same written conflict-of-interest disclosure standards to both insurance and investment recommendations to ensure transparency and informed client consent.

For detailed information, see our Compensation & Disclosure page.

Investment services are provided in the capacity of a Mutual Fund Dealing Representative registered with WhiteHaven Securities Inc.

Insurance solutions are offered through appropriately licensed insurance distribution relationships. Anton Ivanov is a Financial Security Advisor (Québec) and Group Insurance and Group Annuity Plans Advisor.

All recommendations are made within the scope of applicable licenses, regulations, and professional standards.

WhiteHaven Securities Inc. is the dealer through which mutual funds are distributed. Investment services are provided in the capacity of a Mutual Fund Dealing Representative registered with WhiteHaven.

iAssure Inc. is an independent firm in the insurance of persons and in the group insurance of persons. Insurance products and certain other services are provided through iAssure Inc.

It's important to understand that activities related to iAssure Inc. (insurance and other outside business activities) are neither the business nor the responsibility of WhiteHaven Securities Inc.

We work with incorporated business owners in Québec and Ontario, with a focus on serving clients in Montréal and Toronto.

We're licensed in both provinces and understand the provincial variations in tax rates, dividend tax credits, and estate strategy considerations.

See our Montréal and Toronto pages for more information about serving each region.

This website and its content are educational and illustrative only. They explain general concepts and strategies that may apply to incorporated business owners, but they are not personalized investment, tax, or legal advice.

Personalized advice requires:

• A formal engagement and relationship
• Understanding your specific situation (KYC - Know Your Client)
• Suitability assessment based on your circumstances
• Coordination with your professional team

If you'd like to discuss how these concepts might apply to your specific situation, please book a consultation.

Yes : and in most cases, you should. The role here is coordination, not replacement.

We work as part of your professional team, providing investment and insurance expertise while your CPA handles tax compliance and your lawyer handles legal structures. The key is ensuring everything works together.

That can be discussed. Some situations require restructuring; others require clarity and confirmation. The process begins with understanding your needs.

Market volatility is expected. The focus remains on structure, tax efficiency, risk management, and long-term resilience rather than short-term performance.

We help prevent unnecessary changes driven by headlines, fear, or short-term performance noise, while making adjustments when business or family circumstances change.

There is no penalty for ending the relationship. Investments and insurance policies remain yours. Structures are designed to serve you, not lock you in.

The best way to get started is to:

1. Download our Playbook: Get our free "Owner's Tax-Smart Investing Playbook" to understand our approach and key concepts
2. Request a structure review: Get clarity on your current state and identify opportunities
3. Explore our articles: Read our educational guides to learn more about corporate investing and tax strategies

There's no obligation, and we'll help you understand whether we can add value to your situation.

Download the Playbook or request a structure review to get started.