Corporate Surplus & Passive Income
When Does Corporate Surplus Planning Become Relevant?
Quick answer
Corporate surplus planning starts with capital your business does not need for operations, reserves or your personal income. For our work, that generally means $250K+ in net retained earnings or $100K+ in annual profit left after paying yourself, with room for a long-term commitment.
Corporate surplus planning starts with capital your business does not need for operations, reserves or your personal income. For our work, that generally means $250K+ in net retained earnings or $100K+ in annual profit left after paying yourself, with room for a long-term commitment.
Separate surplus from operating capital
A retained earnings balance does not necessarily mean cash is available. Review liquidity, debt, planned purchases and reserves with your accountant before setting aside corporate capital.
Test the long-term commitment
Our qualification questionnaire asks whether you could comfortably commit at least $15,000 annually for 10+ years. This is a fit question, not a product recommendation. Keep your business's operating flexibility first.
When the timing isn't right yet
If profits are inconsistent or cash is needed in the business, revisit planning when surplus is established. Your accountant can help you understand the corporation's available capital.
General information only, not tax, legal or financial advice. Strategies depend on your circumstances and should be reviewed with your accountant and lawyer.
Does your corporation hold more than the business needs?
With $250K+ in retained earnings or $100K+ in annual profit left in the corporation, check whether our long-term planning is a fit for your business and children.
Check if you qualify