Online Broker with Corporation funds

[spiceman]

So.. i was thinking of opening an online brokerage account to use with my corporate funds lying around doing nothing but getting no interest in bank


I figure i start investing some of it... with my bank brokerage

But lets say my stocks do well... how do i get to enjoy it personally? I have to show the revenue when i withdraw... and i wont have any additional expenses... can i use the money for trips ?

I am just wondernig if i make a boatload.. can i enjoy it and how?

Or.. should i do a personal withdrawl as a loand and then do the stock buying with my personal account?

 

[alex52]

stocks go down as well as up. Canadian stock market lagged the us in 2013.

 

[spiceman]

ummm.... not helpful

 

[jaycohen59]

it really depends on what type of investing you are planning on doing.

if you are incorporated and i'm guessing your corporation is an op-co anything you earn weather it is dividends on interest is considered to be taxed as passive income and taxed as the highest marginal tax bracket.

if your looking at rates of return after taxes i recommend researching corporate class mutual funds (if you are risk averse) or if you are fee oriented look at etfs that use derivatives in order to cancel out passive income. both options will allow you to have compounded returns with minimal tax implications.

if in a holding company you have more options of how to take the funds out. Most commonly in op-cos you pay dividends to shareholders. This is the cheapest way of getting the money out of the company to be used personally.

if it is an op-co and the nature of your business is not lending you are not suppose to be making loans to people including yourself (other corporations are fine). Thus leveraging yourself that way doesn't work as well as you think. Depending on what you are needing the funds for there are many options of what you can do

Any good financial planner/investment advisor should be able to give you more in depth insight as per your exact situation

 

[interactive]

So.. i was thinking of opening an online brokerage account to use with my corporate funds lying around doing nothing but getting no interest in bank


I figure i start investing some of it... with my bank brokerage

But lets say my stocks do well... how do i get to enjoy it personally? I have to show the revenue when i withdraw... and i wont have any additional expenses... can i use the money for trips ?

I am just wondernig if i make a boatload.. can i enjoy it and how?

Or.. should i do a personal withdrawl as a loand and then do the stock buying with my personal account?

Spice - what I gathered from this is you are saying hey - if I invest idle funds that are sitting inside of the incorporated company and they grow - how do I personally benefit from this?

Answer is you don't. They aren't your funds. They are the companies. You would withdraw those funds the same way you would draw any other profits from your incorporated company.

BUT you also pose the question of withdrawing the funds from the company and investing personally - sure - the same way you would draw other funds.

However, consider that if you withdraw the funds personally and face the tax consequences and then invest and the investment fails you lose and you lose after having paid the tax.
(yeah - there will be some offset on your personal taxes if you had gains in there from before). If you invest the funds from inside the company and they fail - heh at least you didn't withdraw and pay tax before the loss.

For me - I invest from with the company so the idle funds are not sitting tin the bank doing nothing.


I have to add (humorously) - I hope this corporation is some multinational company that you are the CFO of and have a scheme going or you are not a Nigerian prince.