Boost profits, stay compliant, and reduce tax liability with smart planning
Managing your business taxes goes far beyond filing once a year. If you’re only thinking about your corporate tax obligations during tax season, you’re likely missing opportunities to reduce your liability, increase your cash flow, and plan for sustainable growth.
At Accounting Montreal, we help Canadian corporations take a proactive approach to tax planning. Whether you’re a startup founder, real estate investor, or managing a growing business in construction or retail, strategic corporate tax planning can make a powerful difference to your bottom line.
Why Corporate Tax Planning Matters
Corporate tax planning is the process of analyzing your company’s financial situation and taking strategic actions to minimize your tax liability within the boundaries of the law. It involves optimizing how income is earned, how expenses are recorded, and when financial decisions are made.
Effective planning means:
- Reducing tax obligations
- Improving cash flow
- Preparing for future investments
- Staying compliant with the Canada Revenue Agency (CRA)
- Avoiding penalties or interest
- Supporting long-term business goals
When done properly, tax planning becomes an investment in your business, not just an administrative task.
Incorporation: The First Step Toward Tax Optimization
If you’re operating as a sole proprietor, incorporating your business may be one of the smartest tax planning moves you can make. Incorporation offers advantages like:
- Access to the small business deduction
- The ability to defer personal taxes by retaining earnings in the company
- Income splitting opportunities with family members or shareholders
- Limited liability protection
At Accounting Montreal, we assess whether incorporation is right for your business structure and growth plans. If it is, we handle all the paperwork, CRA setup, and future tax strategies from day one.
Take Advantage of the Small Business Deduction (SBD)
One of the biggest benefits of being incorporated in Canada is the small business deduction. This allows eligible Canadian-controlled private corporations (CCPCs) to pay a reduced tax rate on the first $500,000 of active business income.
As of 2025, the federal small business tax rate is 9%, compared to the general corporate rate of 15%. Provincial rates vary, but the savings can be significant.
However, certain types of income, such as investment income or income from specified corporate partnerships, may not qualify. That’s where our team steps in to make sure your income is structured efficiently to maximize your SBD eligibility.
Optimize Salaries vs. Dividends
One of the most powerful tax planning decisions business owners face is how to pay themselves, a salary, dividends, or a combination of both.
Each has advantages:
- Salary is deductible to the corporation, builds RRSP contribution room, and contributes to CPP.
- Dividends are taxed at a lower rate personally but aren’t deductible by the corporation.
- A hybrid approach can balance current tax efficiency with future financial goals.
We analyze your current income, lifestyle needs, and long-term plans to recommend the most tax-efficient mix.
Leverage Tax Deferrals and Timing Strategies
Sometimes, when you do something is just as important as what you do. Strategic timing of income and expenses can create powerful tax advantages.
Here are a few timing tactics we use:
- Accelerate deductible expenses at year-end to lower taxable income
- Delay revenue recognition into the next fiscal year (where permitted)
- Defer large capital purchases to align with income dips or tax rate changes
- Prepay recurring expenses such as insurance or rent to claim deductions sooner
At Accounting Montreal, we help you align your financial calendar with your tax plan, so you’re never caught off guard.
Don’t Forget About R&D and Other Tax Credits
Many Canadian businesses are unaware of the generous tax credits available at both the federal and provincial levels.
One of the most valuable is the Scientific Research & Experimental Development (SR&ED) tax credit. If your company is working on product development, process improvements, or technology innovation, you may qualify for a refundable or non-refundable credit.
Other credits to explore include:
- Apprenticeship Job Creation Tax Credit
- Investment Tax Credit
- Film and Digital Media Credit (for eligible industries)
- Green energy and clean technology incentives
Our team identifies and helps you apply for every credit you qualify for, ensuring no opportunity is left behind.
Create a Holding Company for Asset Protection and Tax Deferral
For more advanced planning, establishing a holding company may offer benefits like:
- Asset protection: Keeping investments separate from business operations
- Tax deferral: Retaining after-tax earnings without paying out to individuals
- Inter-corporate dividends: Transferring money between companies tax-free
- Business succession planning: Simplifying ownership transfers or sales
This isn’t a solution for everyone, but for the right business, it can be a game-changer. We walk you through the legal structure, compliance requirements, and tax implications so you can decide with confidence.
Stay Audit-Ready with Proper Documentation
Great tax planning also means being ready for the CRA to ask questions. Our system ensures every deduction, credit, and strategy is backed by solid documentation, including:
- Receipts and invoices
- Payroll records
- Contracts and shareholder agreements
- Expense logs and mileage tracking
- SR&ED documentation (if applicable)
Audit readiness gives you peace of mind—and protects your business from unnecessary penalties.
Industries That Benefit from Corporate Tax Planning
No matter what sector you operate in, corporate tax planning is critical. We provide industry-specific solutions for:
- Real estate and property development
- Healthcare professionals and medical clinics
- IT consultants and SaaS startups
- Construction and renovation businesses
- Wholesale and retail companies
- Transportation and logistics firms
Every business is unique, which is why our solutions are customized, not canned.
Why Choose Accounting Montreal?
With over 28 years of experience, our firm serves clients across Laval, Montreal, Toronto, Vancouver, and Quebec City, as well as surrounding communities like Brossard, Dorval, and Longueuil.
What sets us apart:
- Deep knowledge of Canadian tax law and CRA regulations
- Strategic planning backed by real-world experience
- A client-first approach with personalized attention
- Fully bilingual service (English & French)
- Flat-rate pricing and transparent communication
We don’t just help you file. We help you plan, save, and grow with confidence.
Ready to Take Control of Your Corporate Taxes?
Tax planning isn’t just for big corporations; it’s for any business that wants to thrive. If you’re ready to reduce your tax burden and build a smarter financial future, let’s talk.
📞 Contact Accounting Montreal and start your tax strategy with experts who understand your business inside and out.
