Corporate Tax Planning in Richmond Hill
Richmond Hill corporate tax planning by a licensed CPA. We structure your corporation to pay the lowest legal tax: Small Business Deduction optimization, salary vs. dividend mix, holding company strategies, passive income planning, GRIP and LRIP management, associated corporation rules and year-round tax structure reviews. Serving Richmond Hill virtually. 900+ five-star reviews.
AFFORDABLE Corporate Tax Planning for Richmond Hill Businesses
We serve Richmond Hill corporations from the Yonge Street commercial corridor to the Bayview and 16th Avenue professional district, from the Major Mackenzie business hub to Oak Ridges and the Elgin Mills industrial area. Richmond Hill has a dense concentration of healthcare professionals, real estate investors, IT consultants and family-owned retail businesses. Most of them have retained earnings sitting inside the operating corporation with no holdco in place, a salary/dividend split that has never been calculated and passive income that is quietly eating away at the Small Business Deduction every quarter.
We build a written tax structure for every Richmond Hill client. Salary/dividend split optimized to the dollar. Passive income thresholds tracked quarterly. Holdco established before the damage is done. Associated corporations reviewed across every related entity. Two mandatory planning sessions per year. No hourly billing. Fixed flat fee.
Book Free Consultation
Serving Richmond Hill Virtually
| Service | How We Deliver |
|---|---|
| Tax planning sessions | Video call (Zoom, Google Meet, Teams). Screen sharing for real-time review of financial statements, tax projections and salary/dividend scenarios. Recorded if you want to review later. |
| Document exchange | Secure client portal (TaxDome). Upload financial statements, T2 returns, corporate documents and CRA correspondence. Encrypted. Accessible from anywhere. |
| Ongoing communication | Phone (647-212-9559), email (info@gondaliyacpa.ca) and secure portal messaging. Same-day response on business days. |
| Year-end review meetings | Two mandatory virtual sessions per year: mid-year review and pre-year-end review. Written tax plan delivered after each session. |
| CRA correspondence and audit | We handle all CRA communication on your behalf remotely. Notices of assessment, review letters, audit requests and objections managed without requiring any in-person meeting. |
HQ: 168 Simcoe St Unit 1118, Toronto, ON M5H 4C9 · Phone: (647) 212-9559
Why Corporate Tax Planning Matters for Richmond Hill Businesses
| Without Tax Planning | With Tax Planning |
|---|---|
| You pay the general corporate rate (26.5% combined federal + Ontario) on all taxable income. | The first $500,000 of active business income is taxed at 12.2% (Small Business Deduction rate). Proper planning keeps your income within this threshold. |
| Salary and dividends are paid without calculating the optimal mix. You overpay personal tax or miss CPP/RRSP contribution room. | Salary and dividends are split to minimize the combined corporate + personal tax. RRSP room is preserved. CPP contributions are optimized. |
| Passive investment income inside the corporation erodes the SBD. Every $1 above $50,000 reduces the SBD by $5. | Passive income is managed through a holding company. The operating company retains the full $500,000 SBD. |
| Multiple related corporations share the $500,000 SBD limit. | Associated corporation rules are reviewed. The SBD is allocated to the highest-income corporation. Unnecessary entities wound up. |
| Retained earnings accumulate with no extraction plan. Shareholder loans create section 15(2) benefit risks. | Retained earnings extracted through planned salary, dividends, capital dividends (CDA) and inter-company dividends. |
The Difference Between 12.2% and 26.5% on $500,000: A Richmond Hill corporation earning $500,000 in active business income pays $61,000 at the SBD rate or $132,500 at the general rate. The difference is $71,500 in tax on the same income. For a full overview, visit our tax planning page.
What Corporate Tax Planning Includes
| Tax Planning Strategy | What We Do | Who It Benefits |
|---|---|---|
| Small Business Deduction (SBD) optimization | We ensure your CCPC qualifies for the SBD on the first $500,000 of active business income. We monitor passive income, associated corporation rules and taxable capital thresholds. | Every CCPC in Richmond Hill. |
| Salary vs. dividend optimization | We calculate the optimal salary/dividend split each year based on your personal tax bracket, RRSP room, CPP goals, childcare deductions and spousal income. | Every incorporated Richmond Hill business owner. |
| Holding company structure | We set up a holdco to receive inter-company dividends tax-free. The holdco invests separately, protecting investments from creditors and isolating passive income from the SBD. | Richmond Hill business owners with retained earnings exceeding $200,000 or passive income approaching $50,000/year. |
| Passive income management | Passive income above $50,000 reduces the SBD by $5 for every $1 of excess. At $150,000, the SBD is eliminated. We implement holdco dividend flows and the annual sell-and-rebuy strategy. | Corporations with investment portfolios, rental properties or interest income. Extremely common in Richmond Hill. |
| GRIP and LRIP management | We track GRIP and LRIP to determine eligible vs. non-eligible dividend designation. Incorrect designation triggers Part III.1 tax (20%). | Corporations that pay eligible dividends. |
| Lifetime Capital Gains Exemption (LCGE) planning | We structure qualifying shares so each shareholder can claim the LCGE ($1,281,866 in 2025, indexed). Family share classes multiply the exemption. | Richmond Hill business owners planning to sell within the next 1 to 10 years. |
| Associated corporation rules | We review all related corporations and allocate the $500,000 SBD to the highest-income entity. | Richmond Hill owners with multiple corporations. Common with healthcare professionals, real estate investors and multi-location retail operators. |
| Year-end tax structure review | Two mandatory sessions per year: mid-year and pre-year-end. Projections reviewed, payments adjusted, strategies confirmed. | Every Richmond Hill corporate tax planning client. |
Richmond Hill Corporate Tax Planning: Real Client Results
Optometry Practice, Yonge and Major Mackenzie
A Richmond Hill optometrist operating through a professional corporation had $470,000 in active income and was paying herself entirely in dividends. No RRSP room created in 8 years. The corporation held $420,000 in retained earnings invested in a mix of GICs and rental income from a commercial unit, generating $63,000 in annual passive income. The SBD was reduced by $65,000. We established a holdco, transferred all investments via tax-free dividends, introduced a 55/45 salary-dividend split creating $44,550 in annual RRSP room and restored the full SBD.
Real Estate Investor, Oak Ridges
A Richmond Hill real estate investor holding 6 rental properties inside a single operating corporation had $127,000 in annual rental income (all passive). The SBD on the owner's active consulting income ($360,000) was reduced by $385,000, effectively eliminated. We separated the rental portfolio into a dedicated property holdco via section 85 rollovers (avoiding land transfer tax), restructured the consulting corporation as a clean active-income entity and restored the full SBD. The holdco now manages all rental income independently.
IT Consulting Group, Bayview and 16th
A Richmond Hill IT consulting firm with 2 founders running 2 associated corporations (one per client vertical) was splitting the $500,000 SBD. Combined active income: $720,000. Neither founder had calculated the salary/dividend split. We amalgamated the two corporations, allocated the full SBD to the merged entity, each founder took $110,000 as optimized salary/dividend (creating $19,800 in RRSP room each) and established a holdco for future passive income isolation.
Family Grocery Business, Yonge Street Corridor
A Richmond Hill family-owned grocery store planning to sell in 4 years had $240,000 in non-qualifying investments inside the corporation (failing the 90% active asset test for LCGE). Inventory and equipment had been fully depreciated, leaving a low active asset base. We purified the balance sheet by paying a tax-free inter-company dividend to a new holdco, timed a major equipment purchase before year-end to increase active assets, issued non-voting shares to the spouse and two adult children and started the 24-month holding period.
How Corporate Tax Planning Works
Assess
We review your corporate structure, income, expenses, shareholder loans, passive investments, associated corporations and current salary/dividend strategy.
Plan
We build a written tax plan with dollar amounts: salary/dividend split, SBD optimization, holdco strategy, GRIP/LRIP, LCGE timeline and passive income management.
Implement
We execute everything: declare dividends, adjust salary, set up the holdco, transfer investments, file elections and update the corporate minute book.
Review
Two mandatory reviews per year: mid-year and pre-year-end. We adjust based on actual results. Tax planning is continuous.
Richmond Hill Corporate Tax Planning. Written Tax Structure for Every Client.
SBD optimization, salary/dividend, holdco, LCGE, passive income. Two reviews per year. CRA audit support FREE.
2026 Corporate Tax Rates Every Richmond Hill Business Owner Should Know
| Income Type | Combined Federal + Ontario Rate | What It Means |
|---|---|---|
| Active business income (first $500,000, CCPC with SBD) | 12.2% | The most AFFORDABLE corporate tax rate in Canada. Tax planning keeps you here. |
| Active business income (above $500,000) | 26.5% | Income above the SBD threshold. The goal is to minimize income taxed at this rate. |
| Passive investment income (inside corporation) | 50.17% (with refundable portion) | Investment income taxed at 50.17%. Portion refundable via RDTOH when dividends paid out. |
| Inter-company dividends (connected corporations) | 0% (tax-free under Part IV) | Dividends from operating company to holding company received tax-free (section 112). |
| Capital dividends (from CDA) | 0% (tax-free to shareholders) | Non-taxable portion of capital gains (50%) distributed tax-free via Form T2054. |
Industries We Serve for Corporate Tax Planning in Richmond Hill
Every Richmond Hill industry has specific tax planning opportunities. Here are the sectors we serve most frequently.
Corporate Tax Planning for Startups
Pre-revenue tax structure. Founder share classes for LCGE from day one. SR&ED claims for Richmond Hill tech startups. Loss carry-forward management.
Corporate Tax Planning for Healthcare
Professional corporation structures for optometrists, dentists, physicians and specialists along Yonge and Bayview corridors. Salary vs dividend optimization. Family share allocation for LCGE.
Corporate Tax Planning for Consultants
Salary/dividend optimization for Richmond Hill management and IT consultants. Holdco structures for high-income consultants. LCGE planning for firm exits.
Corporate Tax Planning for Small Businesses
SBD optimization on the first $500,000. Year-round salary/dividend strategy. Passive income management below $50,000. Two mandatory tax reviews per year.
Corporate Tax Planning for Restaurants
Multi-location structures across Richmond Hill and York Region. SBD allocation for restaurant groups. Holdco planning for operators accumulating retained earnings.
Corporate Tax Planning for Franchises
Franchise fee amortization. Multi-unit SBD allocation across associated franchise corporations. Holdco structure for royalty income. LCGE planning for resale.
Corporate Tax Planning for Self-Employed
Incorporation timing analysis. Salary vs dividend from day one. RRSP room creation. CPP optimization. Section 85 rollover from sole proprietorship to corporation.
Corporate Tax Planning for Manufacturing
Accelerated CCA and Immediate Expensing on equipment. SR&ED claims for process improvement. Holdco structures for Richmond Hill manufacturers.
Corporate Tax Planning for Grocery Stores
Zero-rated basic grocery vs taxable prepared food. Inventory valuation. Multi-location SBD allocation. LCGE planning for family-owned grocery businesses preparing for sale.
Corporate Tax Planning for Import & Export
Multi-currency income planning for Richmond Hill importers. Transfer pricing compliance. Cross-border entity structuring for businesses serving the Pacific Rim and Middle Eastern markets.
Frequently Asked Questions: Corporate Tax Planning in Richmond Hill
Meet Your Richmond Hill Tax Planning Experts
Your Richmond Hill corporate tax plan is built and reviewed by licensed CPAs with direct experience across every industry we serve.
Sharad Gondaliya, CPA
Founder and Principal CPA. Leads corporate tax planning for Richmond Hill clients. Specializes in SBD optimization, holdco structuring, LCGE planning, passive income management and salary/dividend strategies for healthcare professionals, real estate investors and IT consulting firms.
Vandana Goel, CPA
Senior CPA. Manages tax planning for Richmond Hill professional corporations, multi-property real estate structures and family-owned retail businesses. Experienced in associated corporation analysis, GRIP/LRIP calculations, section 85 rollovers and LCGE preparation.
What Richmond Hill Clients Say About Us
900+ five-star reviews from business owners across Richmond Hill, York Region and Ontario.
10 Advanced Tax Planning Strategies for Richmond Hill Businesses
1. Optimize the Salary-Dividend Mix Annually
The optimal salary/dividend split changes every year. A Richmond Hill optometrist who switched from 100% dividends to a 55/45 salary-dividend split created $44,550 in annual RRSP room, established CPP contribution history and reduced combined corporate and personal tax by $10,800. We calculate both scenarios for every client annually.
2. Protect the Full Small Business Deduction ($500,000 at 12.2%)
The SBD saves $71,500 on $500,000 of active business income. Passive investment income above $50,000, taxable capital above $10 million and associated corporation rules all erode the SBD. Richmond Hill healthcare professionals and real estate investors with accumulated investment portfolios are the most vulnerable. We monitor all three thresholds quarterly.
3. Establish a Holding Company for Asset Protection and SBD Preservation
A holdco receives inter-company dividends tax-free (section 112), invests them separately and isolates passive income from the operating company's SBD. For Richmond Hill healthcare professionals, the holdco protects accumulated wealth from malpractice exposure. For real estate investors, the holdco separates rental properties from the operating company's commercial liabilities. We establish holdco structures for every qualifying client.
4. Implement the Annual Sell-and-Rebuy Strategy for Passive Income
If the operating company holds investments generating more than $50,000 in annual passive income, sell the portfolio before year-end and repurchase immediately. Combined with a holdco dividend strategy, this reduces the operating company's passive income below the $50,000 threshold. We see this most frequently with Richmond Hill optometrists, dentists and physicians who have accumulated diversified portfolios inside their professional corporations over 10 to 15 years of practice.
5. Multiply the Lifetime Capital Gains Exemption Through Family Share Classes
Each family member holding qualifying shares can claim their own LCGE ($1,281,866 in 2025). A Richmond Hill grocery store owner who issues non-voting shares to a spouse and two adult children creates four separate LCGE claims. On a $5.1 million sale, the combined exemption shelters the full gain. We prepare shares for LCGE eligibility years before the exit, including asset purification and holding period tracking.
6. Maximize SR&ED Tax Credits
Richmond Hill technology companies and manufacturing firms that develop new products, improve processes or create proprietary software qualify for SR&ED credits. Eligible CCPCs recover up to 35% of qualified expenditures as a refundable credit. A Richmond Hill software company with $90,000 in eligible developer salaries recovered $31,500. We identify eligible activities and prepare the T661 claim.
7. Utilize the Capital Dividend Account (CDA)
When the corporation realizes a capital gain, 50% is added to the CDA. Life insurance proceeds also increase the CDA. Capital dividends paid from the CDA to shareholders are received completely tax-free via Form T2054. We track the CDA for every Richmond Hill client. Real estate investors who sell a property inside the corporation often generate capital gains without realizing half the gain can be distributed tax-free through the CDA.
8. Time Bonus Accruals Across Two Tax Years
Declare a management bonus before fiscal year-end and pay within 179 days. The bonus is deductible in the current corporate year but included in personal income in the following calendar year. This is particularly effective for Richmond Hill consulting firms and professional practices where annual income is stable but the owner wants to smooth personal tax obligations across calendar years.
9. Evaluate an Individual Pension Plan (IPP) for Owners Over 40
An IPP is a defined benefit pension for a single employee (the business owner). Contributions exceed RRSP limits for owners over 40 with employment income history. A 53-year-old Richmond Hill business owner can contribute $13,000 to $17,000 more per year through an IPP than through an RRSP. Past service contributions create a significant one-time deduction. Creditor protection under pension legislation applies.
10. Review and Restructure Associated Corporations
Richmond Hill business owners frequently operate multiple related entities: healthcare professionals with a professional corporation and a separate property holding company, real estate investors with one corporation per property group, grocery store owners with separate corporations for each location and IT consultants with one corporation per client vertical. Associated corporations share the $500,000 SBD. We review all relationships, allocate the SBD to the highest-income entity and evaluate whether amalgamation or restructuring would maximize the total tax benefit.
Richmond Hill Corporate Tax Planning. Written Tax Structure. Two Reviews Per Year.
Gondaliya CPA builds corporate tax plans for Richmond Hill businesses. SBD optimization, salary/dividend, holdco, LCGE, passive income. Serving Richmond Hill virtually. 900+ five-star reviews.