Salary, dividends or both
There is no universal answer. Salary creates RRSP room and CPP participation and is deductible to the corporation. Dividends avoid payroll administration but create no RRSP room. The right mix depends on income, retirement goals, cash needs and what the corporation should retain.
Passive investment income
As retained earnings accumulate, investment income inside the corporation can affect access to the small business deduction. That makes investment strategy part of corporate tax planning, not a separate conversation.
Timing before year-end
Bonuses, dividend declarations, capital purchases and expense timing can shift between years — but only while the year is still open. We prefer to have the planning conversation before the choices close.
Looking further out
Retained earnings, RRSPs, TFSAs, an eventual sale and retirement all interact. Decisions that look annual can compound over an entire career.