How do I pass my business to the next generation efficiently?
Succession planning decides who takes over your business, how the value moves to you and your family, and how tax is managed along the way. Done early, it protects the lifetime capital gains exemption, funds the transition properly, and keeps the business stable through the handover — all coordinated with your accountant and lawyer.
How it works in a Canadian corporation
A business transfer in Canada can take several forms: a sale to family, a management buyout, or a third-party sale. Each has different tax treatment, funding requirements and timelines, and most require years of preparation to execute well.
The plan typically covers valuation, the structure of the transfer, how you'll be paid out, how the buyer funds the purchase, and what happens to the corporation's retained earnings and insurance along the way.
Who it suits — and who it doesn't
A good fit if…
- You're within ten years of wanting to step back from the business
- You want to explore transferring to family, management or a third party
- You want to protect your lifetime capital gains exemption eligibility
- You want one coordinated plan across your accountant, lawyer and other advisors
Probably not if…
- Your business is not incorporated
- You need a business broker to sell your company — that's a different service
- You're looking for accounting, bookkeeping or tax preparation services — we don't provide those
How we work with your accountant and lawyer
We do not provide accounting, tax or legal services. Your accountant and lawyer stay at the centre of every plan: we develop options, they confirm the tax and legal treatment, and nothing is implemented without their review.
If you don't have an accountant or lawyer, we can suggest questions to ask when choosing one — and with your consent, introduce you to independent licensed professionals.
FAQ
Frequently asked questions
When should I start succession planning?
Ideally five to ten years before you want to step back. The most tax-efficient transfer structures take time to set up, and a rushed sale rarely produces the best outcome.
Can I transfer my business to my children tax-efficiently?
In many cases, yes — recent Canadian rules expanded the options for genuine intergenerational transfers, but the conditions are strict. Your accountant confirms eligibility and your lawyer structures the transaction; we coordinate the plan around it.
What if nobody in my family wants the business?
Then the plan shifts to management buyouts or a third-party sale — each with different tax and funding considerations. We help you compare the paths and coordinate the advisors who execute them.
How does the lifetime capital gains exemption fit in?
Qualifying shares can shelter a significant amount of capital gains on a sale, but eligibility depends on how your corporation is structured in the years before the sale. Planning early with your accountant protects it.
Your surplus deserves a deliberate plan.
For incorporated owners with $250K+ in retained earnings, or $100K+ in annual profit left in the corporation. Tell us about your surplus and your family goals so we can confirm whether we can add value.