I own a corporation in Toronto, how do I use my inc's money for personal matters w/out giving myself a salary?
Are there any other ways I can use my corporation money for personal purposes and be able to keep a good book without doing it through a payroll account?
I incorporated recently and have around $10000 which I need to use immediately for business and personal reasons. But I don't want to touch it until I know the proper way to do it, of course without having to give myself a salary.
In other words, am I free to transfer money to my personal account as I please throughout the year without getting into problems later.. obviously, I am willing to pay taxes on it at the end of the fiscal year..
- LuisLv 61 decade agoFavorite Answer
I think this depends on your contract. You have no salary, but are you entitled to bonuses?
You could likely just give it to yourself as a bonus.
Your other option is to use the business to cover some of your personal assets. For example the business could own your car, in which case you don't have to make car payments, it'd be a company car.
But that's tricky, because if it folds, it takes your car, which is likely why you incorporated.
So just ask your accountant if you can just take a $10000 bonus. You should pay the same taxes, but it's still not a salary.
- 1 decade ago
no. that's illegal. if it's for personal use, you must pay it to yourself and pay taxes on what you are paid. If it is for business, use your business checks and write it off during tax season if it falls under things to write off.
Don't be stupid and shoot yourself in the foot. It may take them awhile, but the government will catch up to you if you try to get around paying Caesar what Caesar is do.
Hope this helped.Source(s): I worked for Bank Of America and helped put people behind bars for doing dumb crap like that.