Some corporate cash needs to stay accessible. Some may support longer-term goals. Deciding what to retain, invest, or use to fund protection starts with understanding those needs.
Our Corporate Liquidity Review brings your cash commitments, tax exposure, and insurance needs into one conversation, with your existing advisors involved where needed.
Book a Corporate Liquidity ReviewYour corporate cash may need to support next quarter’s expenses, a change in your working hours, or plans years down the road. Understanding those demands helps establish how much you can commit and which strategies are worth considering.
Taxes, operating costs, planned purchases, and reserves all have a claim on your corporate cash. Your bank balance alone doesn’t tell you how much is available for long-term planning.
Taking more time off, expanding your practice, or preparing for retirement can change your need for accessible cash. A strategy should account for those plans before committing money.
Corporate-owned insurance may address protection and longer-term planning needs. Whether it fits depends on your circumstances, funding capacity, and the trade-offs involved.
The Starting Point
Define what the money needs to do before deciding where it should go.
A focused review of your corporate cash, the demands on it, and whether an insurance-based strategy deserves further consideration.
Identify upcoming obligations, reserve needs, and the money you may need to access before considering a long-term commitment.
Review potential long-term surplus and how it is currently held. Identify tax questions to examine with your CPA, including passive-income exposure and potential effects on the Small Business Deduction.
Assess your insurance needs alongside funding capacity, time horizon, and liquidity requirements. Examine costs, guarantees, non-guaranteed assumptions, and access limitations.
Determine whether to proceed to detailed modelling, resolve questions with your existing advisors, or leave the current approach in place. Implementation follows only when suitable.
There is no upfront consulting fee for the Corporate Liquidity Review. If a suitable insurance strategy is implemented, compensation is paid by the insurer through first-year and renewal commissions.
For Canadian-controlled private corporations, adjusted aggregate investment income (AAII) can reduce the federal small business limit. These thresholds concern investment income, not the amount of cash in your corporate account.
The passive-income reduction begins when combined AAII exceeds $50,000 across the corporation and its associated corporations.
With a full $500,000 federal business limit, each $1 of AAII above $50,000 reduces that limit by $5. The formula scales for an allocated or otherwise reduced business limit.
At $150,000 of combined AAII, the passive-income reduction eliminates the federal small business limit.
The calculation generally uses taxation years ending in the preceding calendar year. Associated corporations, taxable capital, provincial rules, and other circumstances can affect the result. Confirm the application with your CPA.
A useful review should leave you clearer about the decision, including when keeping your current approach makes sense.
The review starts with your cash commitments, access needs, protection requirements, and goals. Any proposed structure must fit those circumstances.
Tax-sensitive decisions should be examined with qualified accounting, tax, and legal professionals where appropriate before implementation.
If an insurance strategy does not fit your needs, funding capacity, or time horizon, the appropriate outcome is to leave it aside.
No. SBD exposure is one possible consideration. The review also examines cash commitments, access needs, potential long-term surplus, and insurance suitability.
Incorporated healthcare professionals in British Columbia, including medical, dental, veterinary, and similar professional practices considering how to manage corporate surplus and protection needs.
There is no upfront consulting fee. If you proceed with suitable insurance implementation, the insurer pays first-year and renewal commissions.
The review provides an educational planning discussion. Specific tax conclusions and tax-sensitive implementation should be reviewed with your qualified CPA, tax advisor, or legal professional.
Then we do not proceed with that strategy. A review can identify reasons to keep funds accessible, revisit the decision later, or discuss other options with your existing advisors.
No. The review complements your existing advisory relationships. Accounting, investment, legal, and insurance decisions should be coordinated as needed.
No confidential documents are required before the initial conversation. If further review is appropriate, we can explain which information is needed and arrange a suitable process for sharing it.
The Corporate Liquidity Review combines analysis, suitability assessment, and coordination of appropriate implementation.
Corporate Liquidity Analysis / Review Framework
Develops and directs the review framework, bringing together retained earnings, corporate cash needs, and passive-income exposure to identify questions for further analysis and modelling.
Lead Advisor / Structural Implementation
Leads most client consultations and oversees suitable corporate-owned insurance implementation, including underwriting coordination and liquidity planning.
Start with a conversation about your retained earnings, cash needs, and longer-term goals. We’ll help identify whether an insurance-based strategy warrants a closer look and which questions need coordination with your CPA.
No upfront consulting fee. Insurance implementation only where suitable.
