How to Pay Yourself from Your Corporation
A Quick Checklist for Shareholders
You've built something great—now let’s make sure you’re paying yourself in the smartest, most tax-efficient way possible. Here are your main options to withdraw funds from your corporation, each with its own perks.
1. Take a Salary or Wage
✔️ Steady income
✔️ Builds RRSP room
✔️ Boosts CPP benefits
✔️ Reduces your corporation’s taxable income
Best for you if:
You want regular income
You’re planning for retirement
You want to qualify for RRSPs and other credits
2. Take Dividends
✔️ Often taxed at lower rates
✔️ No CPP contributions required
✔️ Flexible timing and amounts
Best for you if:
You prefer flexibility
You want to top up income in a tax-smart way
3. Use a Shareholder Loan
✔️ Quick access to funds
✔️ No tax if repaid within the right timeframe
✔️ Great for short-term needs
Best for you if:
You need short-term cash
You have a plan to repay the loan within one year
4. Return of Capital
✔️ Can be withdrawn tax-free (up to your investment amount)
✔️ Defers taxes to the future
Best for you if:
You want to lower taxes today
You’re okay deferring taxes to a later time
5. Charge Management or Consulting Fees
✔️ May allow for income splitting or tax deferral
✔️ Tax-deductible to the corporation
Best for you if:
You operate through another entity (like a consulting company)
You want to explore advanced tax planning strategies
Let’s Create Your Custom Pay Strategy
The best option depends on your goals, lifestyle, and tax situation—and we’re here to help you find the perfect mix.
Ready to make a plan?
Book a call with us at EO CPA and let’s design a pay structure that works for you.
