1. Corporate Structure & Tax

☐ Is your current corporate structure still appropriate for the business?

☐ Do you have more than one corporation, holding company, operating company, or associated company that should be reviewed together?

☐ Are you making the best use of the small business deduction?

☐ Could investment income or other corporate income affect access to the small-business tax rate?

☐ Are corporate tax instalments being made when required?

☐ Are you keeping sufficient cash aside for corporate taxes?

☐ Are shareholder advances and withdrawals being properly recorded rather than inadvertently creating a shareholder loan?

☐ Does your accountant review potential tax-saving opportunities before year-end, rather than only when preparing the tax return?

A corporation's T2 return is generally due within six months after its fiscal year-end, while the actual corporate tax balance can generally be due two or three months after year-end. Corporate instalments may also be required during the year.

2. Salary vs. Dividends

☐ Have you reviewed whether you should take compensation as:

Salary
Dividends
A combination of both?

☐ Have you considered how your compensation strategy affects:

RRSP contribution room
CPP contributions and future CPP benefits
Personal tax
Corporate tax
Mortgage/borrowing qualification
Other personal planning objectives?

☐ If a spouse or family member works in the business, is their compensation reasonable for the work performed?

☐ Is there a coordinated strategy for moving money from the corporation to your household?

3. Corporate Cash & Investments

☐ Is excess cash accumulating inside the operating company?

☐ Have you determined how much cash the business actually needs for:

Operating expenses
Taxes
Payroll
Capital expenditures
Emergencies
Future acquisitions or expansion?

☐ Is surplus cash simply sitting in a corporate bank account?

☐ Should excess funds be invested?

☐ Should investments be held in the operating company or should a holding company be considered?

☐ Have you considered the taxation of passive investment income inside the corporation?

☐ Is your corporate investment portfolio consistent with when the money will eventually be needed?