What it costs
What leaving it in the corporation costs you each year.
Public rules, your numbers. Move the balance and see the tax on what it earns, the small business limit it takes with it, and the yearly total.
No obligation. We review it and reach out within two business days. Licensed across Canada.
Ontario, September 2026, for a corporation with at least $500,000 of active income. Every rate and its source is on one page. Interest is taxed at 50.17% inside the corporation and counts in full as adjusted aggregate investment income. Capital gains are half taxable, so the effective rate is 25.09% and half the gain counts. Part of the corporate tax is refundable when the income is paid out as a taxable dividend, which is then taxed personally at up to 47.74%. Every dollar of passive income over $50,000 removes five dollars of federal small business limit, worth 6% each, to a maximum of $30,000 at $150,000. Ontario does not reduce its own limit. Nothing here is advice; the review is where your actual situation gets looked at.
The number above is the price of the wrong container.
The same money, inside a corporate-owned participating whole life policy, grows with no annual tax and does not count toward the $50,000 line. It stays available to the business as collateral. At death it moves to your family through the capital dividend account, tax-free.
Owners who need the capital working use an immediate financing arrangement: buy the policy, borrow most of the cash value back from the bank the same year, and keep building.
No annual tax while it grows
What the corporation would pay 50% on every year, it pays nothing on inside an exempt policy.
Not counted toward the line
Policy growth is not passive income. The small business rate stays where it is.
Paid with 11.2% dollars
Premiums come from corporate income, not from income you took out at 53.53% first.
A tax-free exit
Through the capital dividend account, to the people you built it for.