Retained earnings are the profits your company keeps after it pays its bills and pays you. Most owners leave this money in the bank or invest it inside the company.
LG Financial Group · Burlington, Ontario · Since 2008
Corporate Tax Planning for Ontario Business Owners
Put your corporation's surplus to work. We help you move retained earnings into a Corporate Insured Retirement Program, critical illness insurance and an Individual Pension Plan, so less of it goes to tax.
The Problem
Ontario Corporate Tax Rates in 2026
Your company pays a low rate on business income, but a very high rate on money it invests. That is why extra money in a corporation costs so much tax.
11.2%
Small business rate
What your company pays on its first $500,000 of business income.
50.17%
Investment income rate
What your company pays on interest and other investment income.
$50,000
The passive income limit
Earn more than this from investments, and your company starts to lose its low federal small business rate.
The Fix
Put it into 3 plans instead
Each plan uses company money. Each one is built to save tax.
Corporate Insured Retirement Program
Your company buys life insurance on you. It grows tax-free. When you retire, you borrow from it tax-free. Most of it goes to your family tax-free.
Learn moreCritical Illness Insurance
If you get cancer, a heart attack or a stroke, your company gets a tax-free lump sum. If you never get sick, you get all the premiums back, tax-free.
Learn moreIndividual Pension Plan (IPP)
A pension your company pays for. Your company gets a tax break on every dollar. You can save much more than an RRSP allows.
Learn more
How It Works
Getting started is easy
A free call
Tell us about your company. It takes about 15 minutes.
We show you the numbers
You see what you could save. Your accountant can check it.
We set it up
We do the paperwork for you.
Questions
Corporate tax planning questions
There are only a few ways. With a Corporate Insured Retirement Program, you borrow against a company-owned life insurance policy when you retire. A loan is not income, so it is not taxed. When the policy pays out at death, most of it can go to your family tax-free.
From July 1, 2026, a small business pays 11.2% on its first $500,000 of business income. The general rate is 26.5%. Investment income inside a corporation is taxed at about 50.17%.
Yes. We show you the numbers, and your accountant checks them before you decide.
Our office is in Burlington, Ontario. We help business owners in Burlington, Oakville, Milton, Mississauga, Hamilton and nearby.
Get a free call
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Or call us now: 289 339-8100
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