The MORE Subscribers we have the MORE videos we can post, so please SUBSCRIBE bit.ly/AVASUB, hit the 🔔 and LIKE this video. THANK YOU!!! Do you know of any other purposes to a Holding Company? Comment below!
I subscribed because you deserve it. More than wonderful videos and we watch them for free.! At least we should subscribe to your channel to thank you. Sincerely, :-)
My partner and I both opened holdings last year. He's 60 and I'm 40 so our life time goals are different. It's good to take the money out of the company as it comes in to avoid the mess of dividing this when he's ready to retire. He can invest in a portfolio that suits him and same for me. It allows us to mix salary and dividends to whatever level feels right for us and nobody loses or feel obligated to take the money in one form or another.
No words can describe how much I appreciate you right now! I’m in the process of my cga recommending moving assets into hold co and they’ve been amazing! BUT I needed to understand more as I had questions after our meeting. Again I wanted to thank you so much for your information! It was so helpful allowing a plumber to understand what my CGA was recommending. It was overwhelming at the time and my about 80% of my questions were answered in this video! Thank you 🙏
I appreciate the Tommy Boy reference. :) I'm trying to figure out how to structure a real estate business, pay myself nothing to grow the business exponentially and pass along to my kids. The less I pay in taxes now, the faster it can grow. Thank you for the informative video. :)
Hey Joe! I'm loving the content. Thank you so much for taking the time to create it! I'd love to see animations that will help you explain concepts, but I understand that that can get pretty pricy. Figured I'd give my 2 cents :) Thanks again and please keep it up!
@@AvalonAccounting Fiverr and other similar services can be used to "sub out" such a "gig". Sometimes it takes trying a few people to find a really good one to work with.
caution: Part IV tax on section 112 Dividends taxed at 50.67 % in Ontario and even with the dividend refund when ultimately pd out as dividends, combined tax can be higher than earning the money directly in personal tax return. Each situation different..
Thanks for all the information it is very helpful! I have a question, if I have two different operating company do I have to open two separate holding companies for them or I can just have one holding company for both of them? Thanks in advance 🙏
Love your channel, Can you please explain dividends paid between corporations, connected and not connected, foreign vs. Canadian, and RDTOH account. How much is actually a passive company pays in tax on income and how much is refunded? Thanks so much
thank you for making this. very informative and you present the information in an easy to digest way. keep it up as i'm starting to learn about all this so i can do it right when i get started. subbed!
Hi there, when researching the qualifying criteria for the LCGE, it says that the holding company must not be a direct shareholder of the business which is being sold in order to qualify. This wasn’t touched on in scenario 2, but I am wondering what structure would be best to ensure the holding company isn’t a direct shareholder but the assets can still be transferred tax free so the business owner can qualify.
Q1: do you have a video related to amount due from owner/shareholders; funds do not get paid back. When do they need to clear off the books and how is it done? Q2: same situation above but fiscal year end is Jun 30 and I have payroll for 10 other people. Would my T4 have a different period end date than employees?
im not sure about the harvey specter example. he wouldnt pay 24k but more like half of it since you only pay capital gains taxes on half the investment income
@AvalonAccounting Thanks Joe for the great content and nice presentation. I loved it. I have a few questions and would love to have the opportunity to discuss it with you if you're available. I'm in the process of forming a Wyoming LLC which will serve as a holding company for my future Canadian operating subsidiaries. Does this structure work for the purpose of tax exempt when I move profits from the Cda operating entity to the US holding one in the form of dividends? Thanks again for these great videos and keep it up 💪
Thank you for the great content! Assuming an Opco with operating assets and a big portfolio of investments in shares of listed companies. Is it possible for the Opco to incorporate a subsidiary and transfer all operating assets and actual operations to the subsidiary while keeping the investment portfolio? Would the Opco (parent) now be considered a holding company and the newly incorporated subsidiary now becomes an opco and carries all the risks associated with an opco? Would this re-organization shield/protect the investment assets from any claims on the subsidiary level? It would be greatly appreciated if you could shed some light! Thank you!
Is the any disadvantages (more on the sale of Realestate) at a later date for me or my children in retirement? Or can shares be transferred to my children tax free (on the properties) within the hold co?
Great video! About the capital gain exemption, does it make a difference if the owner sells his shares but holds a seller note for 5 years. Can he use the exemption on a yearly basis for the next 5 years?
If you sell a company but plan to use the funds to open another business, will a holding company be the best tool to defer capital gains tax, or are there better options available?
Hello Joe, thanks for making this video. I have a question hoping you would be able to answer. In terms of inter-company dividends (Example OPCO sending company tax paid dollars (Profits or Retained Earnings) to HOLCO via a dividend)... does HOLDCO need to own any number/percentage of OPCO shares in order to make this a tax free inter-co dividend? If HOLCO does not own/hold any OPCO shares, what are the the tax implications of OPCO sending dividends to HOLDCO? In example #2... you mention Aviato creating a HOLDCO (purification strategy enabling use of Lifetime Capital Gain Exemption) and sending its $1M profit to HOLDCO... and then selling OPCO shares. If HOLDCO owns OPCO shares can't use LCGE... if HOLDCO owns 10% of OPCO shares - use LCGE on 90% OPCO shares that are personally, and 10% asset sale for HOLDCO. Hoping you can clarify criteria for tax implications on dividends sent from OPCO to HOLDCO. Long winded I know... hoping you would clarify. Thanks in advance.
As part of a divorce settlement I got the value of my ex holding company. I will transfer the shares to a corporation that I created. Because it will be passive will I still have the benefits of a holding company?
This is a rant to a 'potential find'. Having companies like Loblaws being owned USA but tricked out (in this case canada, china to others), There is a good possibility that a lot of companies within Canada are owned by a different country other than specified. This allows a lot backroom deals to other usa owned companies and creates the illusion it is business as usual. The extract in profits going out is huge, but creates a backdoor for foreign workers to be hired over canada.
Thanks, glad you found it helpful! We do have team members and clients in Calgary, but we work remotely so no actual office located in Calgary. You can always reach out on the website if you're interested in working together. Thanks for the comment and interest!
I’m looking for more information about associated Canadian corporations - is it good, bad, should I try to avoid it? How to deal with it with my business partners?
Associated corporations need to share the Small Business Deduction, so if it can be avoided, it should be. The rules are not that intuitive, so it's best to speak to a tax specialist to understand which corporation yours would be associated with. You should come to the specialist with a list of the other shareholders and their holdings/% ownership of other corporations. If you are associated, you will need to negotiate with the other shareholders on how the Small business deduction will be allocated.
Hey there - the best way to reach us is through the website - www.avalonaccounting.ca. You'll likely get Anna who can help point you to the right person for your question / service needs. Thanks!
Quick question when you say inter company dividends is tax free what you are saying is company 1 pays company 2 dividends. When company 2 receives the dividends it doesn't pay any tax on that amount. That being said company 1 will still pay tax on that money for originally earing it, so there will still be a 15% corporate tax paid by company 1, correct ?
The MORE Subscribers we have the MORE videos we can post, so please SUBSCRIBE bit.ly/AVASUB, hit the 🔔 and LIKE this video. THANK YOU!!!
Do you know of any other purposes to a Holding Company? Comment below!
I subscribed because you deserve it. More than wonderful videos and we watch them for free.! At least we should subscribe to your channel to thank you. Sincerely, :-)
How do you not have 30 million subscribers? This is amazing stuff. Thank you!
Best ever! Thanks for the lift! I'll keep them coming and hopefully we can get there ;)
What an informative and easy-to-understad video! Thanks so much for the explanations and the examples!! ❤
I did a holdco structure years ago. It was a painful expense at the time, but it will save me well over a million in taxes.
My partner and I both opened holdings last year. He's 60 and I'm 40 so our life time goals are different. It's good to take the money out of the company as it comes in to avoid the mess of dividing this when he's ready to retire. He can invest in a portfolio that suits him and same for me. It allows us to mix salary and dividends to whatever level feels right for us and nobody loses or feel obligated to take the money in one form or another.
I just opened a holding company and then learned about your UA-cam channel, so glad you made a video about this!!
How did you do it
No words can describe how much I appreciate you right now! I’m in the process of my cga recommending moving assets into hold co and they’ve been amazing! BUT I needed to understand more as I had questions after our meeting. Again I wanted to thank you so much for your information! It was so helpful allowing a plumber to understand what my CGA was recommending. It was overwhelming at the time and my about 80% of my questions were answered in this video! Thank you 🙏
I appreciate the Tommy Boy reference. :)
I'm trying to figure out how to structure a real estate business, pay myself nothing to grow the business exponentially and pass along to my kids. The less I pay in taxes now, the faster it can grow. Thank you for the informative video. :)
Really digging the movie references. I too used to eat paint chips as a kid.
Great video, Joe! Love the Silicon Valley reference...
Thanks James! Anything to keep things interesting! Ah-viato!
Thank you I just started a new corporation and I will start a holding first....
Great video! Do you cover whether investing in stocks, funds, bonds etc is better in a holding co vs opco anywhere? Thank you
Hey Joe! I'm loving the content. Thank you so much for taking the time to create it! I'd love to see animations that will help you explain concepts, but I understand that that can get pretty pricy. Figured I'd give my 2 cents :) Thanks again and please keep it up!
Thanks for the idea! I definitely want to up the level of production on these, so that's a great suggestion.
@@AvalonAccounting Fiverr and other similar services can be used to "sub out" such a "gig". Sometimes it takes trying a few people to find a really good one to work with.
Good information with funny call backs, take my like, comment and subscription!
Oh my gosh, this is such a great video. Thank you so much.
caution: Part IV tax on section 112 Dividends taxed at 50.67 % in Ontario and even with the dividend refund when ultimately pd out as dividends, combined tax can be higher than earning the money directly in personal tax return. Each situation different..
Could a holding company issue bonds to potentially borrow money at better terms than from a bank?
Hi how can i contact you about register a holding structure for my new venture?
I have a operating company. Now if I incorporate a holding company, how do I put the existing company under the new holding company?
My tax lawyer did it all for me in 2016 it cost me about 15k Canadian. I would recommend using a decent tax lawyer
@@stangleezehowcome it never accures to people to build a holding company in the beginning? Im curious
Bob Loblaw real business person. 👍
Hi Avalon, Thank you for your informative video. Question? Can a holding company own a private foundation? Thanks.
Thanks for all the information it is very helpful!
I have a question, if I have two different operating company do I have to open two separate holding companies for them or I can just have one holding company for both of them? Thanks in advance 🙏
Love your channel, Can you please explain dividends paid between corporations, connected and not connected, foreign vs. Canadian, and RDTOH account. How much is actually a passive company pays in tax on income and how much is refunded? Thanks so much
This is great stuff right here. Very informative ! Kudos ! Let me just make sure I subscribe and turn on my notification.
Thanks Mick! Great to have you here!
Great content guys!! Just found this channel and it’s really helpful and great, thank you
Great video, very very helpful. Very organized. Thanks a lot.
thank you for making this. very informative and you present the information in an easy to digest way. keep it up as i'm starting to learn about all this so i can do it right when i get started.
subbed!
Thanks for this! Just the message I needed to hear. Will keep going!
Well done, great content, so clear and well organized. This is a life saver.
Glad it was helpful!
Great video ! What about holding companies abroad that have shares in Canada ? Is there any restrictions ?
Wow, great video… I’m looking for some answers to some questions… this helps… Cheers!
If you haven’t already could you do a quick video on loan vs investor funding
Got it! ua-cam.com/video/JRMvyMDoNhs/v-deo.html
Hi there, when researching the qualifying criteria for the LCGE, it says that the holding company must not be a direct shareholder of the business which is being sold in order to qualify. This wasn’t touched on in scenario 2, but I am wondering what structure would be best to ensure the holding company isn’t a direct shareholder but the assets can still be transferred tax free so the business owner can qualify.
Very sorry informative video. Also liked the Silicon Valley and Suits references!
Thank you so much! This info is amazing!
Great video and good to see alumni here.
More to come!
Q1: do you have a video related to amount due from owner/shareholders; funds do not get paid back. When do they need to clear off the books and how is it done?
Q2: same situation above but fiscal year end is Jun 30 and I have payroll for 10 other people. Would my T4 have a different period end date than employees?
im not sure about the harvey specter example. he wouldnt pay 24k but more like half of it since you only pay capital gains taxes on half the investment income
@AvalonAccounting
Thanks Joe for the great content and nice presentation. I loved it.
I have a few questions and would love to have the opportunity to discuss it with you if you're available.
I'm in the process of forming a Wyoming LLC which will serve as a holding company for my future Canadian operating subsidiaries. Does this structure work for the purpose of tax exempt when I move profits from the Cda operating entity to the US holding one in the form of dividends?
Thanks again for these great videos and keep it up 💪
scenario 3 : should i create a holding company to invest into stocks/crypto while i work my regualr salarried job?
Very informative! Thank you!
Very welcome!
Big help - thank you!
Thank you for the great content! Assuming an Opco with operating assets and a big portfolio of investments in shares of listed companies. Is it possible for the Opco to incorporate a subsidiary and transfer all operating assets and actual operations to the subsidiary while keeping the investment portfolio? Would the Opco (parent) now be considered a holding company and the newly incorporated subsidiary now becomes an opco and carries all the risks associated with an opco? Would this re-organization shield/protect the investment assets from any claims on the subsidiary level? It would be greatly appreciated if you could shed some light! Thank you!
Can you day trade with the assets held in a holding company? Or must has to be fixed stocks or GICs?
Is the any disadvantages (more on the sale of Realestate) at a later date for me or my children in retirement? Or can shares be transferred to my children tax free (on the properties) within the hold co?
Great video! About the capital gain exemption, does it make a difference if the owner sells his shares but holds a seller note for 5 years. Can he use the exemption on a yearly basis for the next 5 years?
Looking to set one up, this is really helpful! Thank you
No problem 👍
how do you transfer shares from an opersating company to a number company with one owner total?
If you sell a company but plan to use the funds to open another business, will a holding company be the best tool to defer capital gains tax, or are there better options available?
Great channel!!
Hello Joe, thanks for making this video. I have a question hoping you would be able to answer. In terms of inter-company dividends (Example OPCO sending company tax paid dollars (Profits or Retained Earnings) to HOLCO via a dividend)... does HOLDCO need to own any number/percentage of OPCO shares in order to make this a tax free inter-co dividend? If HOLCO does not own/hold any OPCO shares, what are the the tax implications of OPCO sending dividends to HOLDCO?
In example #2... you mention Aviato creating a HOLDCO (purification strategy enabling use of Lifetime Capital Gain Exemption) and sending its $1M profit to HOLDCO... and then selling OPCO shares. If HOLDCO owns OPCO shares can't use LCGE... if HOLDCO owns 10% of OPCO shares - use LCGE on 90% OPCO shares that are personally, and 10% asset sale for HOLDCO.
Hoping you can clarify criteria for tax implications on dividends sent from OPCO to HOLDCO.
Long winded I know... hoping you would clarify. Thanks in advance.
Very helpful
Great video! Very informative and easy to understand
Thanks Simon! Glad it was helpful!
Tom Callahan?? Brake pads?? 😂 awesome
As part of a divorce settlement I got the value of my ex holding company. I will transfer the shares to a corporation that I created. Because it will be passive will I still have the benefits of a holding company?
Great info!
Great video.
This is a rant to a 'potential find'.
Having companies like Loblaws being owned USA but tricked out (in this case canada, china to others),
There is a good possibility that a lot of companies within Canada are owned by a different country other than specified.
This allows a lot backroom deals to other usa owned companies and creates the illusion it is business as usual.
The extract in profits going out is huge, but creates a backdoor for foreign workers to be hired over canada.
nice work. very helpful. you in Calgary?
Thanks, glad you found it helpful! We do have team members and clients in Calgary, but we work remotely so no actual office located in Calgary. You can always reach out on the website if you're interested in working together. Thanks for the comment and interest!
I’m looking for more information about associated Canadian corporations - is it good, bad, should I try to avoid it? How to deal with it with my business partners?
Associated corporations need to share the Small Business Deduction, so if it can be avoided, it should be. The rules are not that intuitive, so it's best to speak to a tax specialist to understand which corporation yours would be associated with. You should come to the specialist with a list of the other shareholders and their holdings/% ownership of other corporations. If you are associated, you will need to negotiate with the other shareholders on how the Small business deduction will be allocated.
@@AvalonAccounting ownership stake vs control - how do they impact the association
There’s no corporation video link....
Is there than a difference between incorporation and holding company? Or rather, how does one incorporation become a holding company?
There's no legal difference, but holding companies would not have any operational income. They would hold assets and produce passive income.
Great video, amazing example names 😂
😜
Does paying dividends avoid EI as well? If so another benifit on top of CPP
It does, but you aren't required to pay EI on owner salaries anyways, so kind of a moot point.
Helpful!!!
Thanks Zanna!
Bob Loblaw deserves to have his assets in jeopardy considering his faulty workmanship!
Hi
How can I get in touch with you?
Hey there - the best way to reach us is through the website - www.avalonaccounting.ca. You'll likely get Anna who can help point you to the right person for your question / service needs. Thanks!
Quick question when you say inter company dividends is tax free what you are saying is company 1 pays company 2 dividends. When company 2 receives the dividends it doesn't pay any tax on that amount. That being said company 1 will still pay tax on that money for originally earing it, so there will still be a 15% corporate tax paid by company 1, correct ?
You got it! The corporate tax is paid within the first corporation, but not the second.
0:45 fonds 😂
Haha! I know🙈- team member pointed it out and I was like 🤷🏻♂️. C'est la vie!
@@AvalonAccounting you know about that ok ? Would like to hear more
Mad man nod ?! 😂