Self-employed

A word to the tax ramifications:

Ideally speaking, you should be issuing yourself a T5 to clear your shareholder draws which would be reported on your personal income tax.  This is the most common approach and the least likely to raise eyebrows at CRA.  Another method is to report management fees to the shareholder, which is also common, but slightly less popular at CRA.  This would go on your personal income tax as self-employment income.  CRA is much more likely to look at a bonus paid at year end.

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