Getting money out of a corporation bank account (Small business account) for personal use

[Clorets90]

Hello,
As the title says how I can get money out of my corporation bank account?
for example, I sold a watch for 50 CAD how I will take it out? for personal use to buy groceries, pay my bills etc...
do I need to pay myself a salary? if so do I need a payroll account? This is a one-person company.

Thank you!

 

[scylla]

Hello,
As the title says how I can get money out of my corporation bank account?
for example, I sold a watch for 50 CAD how I will take it out? for personal use to buy groceries, pay my bills etc...
do I need to pay myself a salary? if so do I need a payroll account? This is a one-person company.

Thank you!

If you're not sure how this works, you should really hire a small business accountant to assist you in setting up the basics.

There are implications to both your business tax return and to your personal tax return.

 

[canuck78]

As previously commented you really should hire someone or find a business mentor. The cost of hiring someone will save you money in the end. This isn’t a cash business like in many countries where you can buy something and resell without any tax implications. YouTube and this forum is not enough given your questions.

 

[Clorets90]

Thank you both please suggest me one.

 

[canuck78]

Thank you both please suggest me one.

Given that you don’t want to pay for one I would suggest asking around in your circle of friends, your religious organization if you attend one, cultural association, etc. You can’t expect a person to give you as much time as a paid accountant or mentor but ask around and perhaps someone will be willing to volunteer some of their time. Many often had a mentor or wish they had and may be willing to help someone out on an informal basis.

 

[Clorets90]

Given that you don’t want to pay for one I would suggest asking around in your circle of friends, your religious organization if you attend one, cultural association, etc. You can’t expect a person to give you as much time as a paid accountant or mentor but ask around and perhaps someone will be willing to volunteer some of their time. Many often had a mentor or wish they had and may be willing to help someone out on an informal basis.

Thank you I meant if there would be someone here in the forum who charges reasonable prices instead of meeting! I can pay through E-Transfer or PayPal

 

[Sohoun]

Je suis disponible , vous pouvez

Hello,
As the title says how I can get money out of my corporation bank account?
for example, I sold a watch for 50 CAD how I will take it out? for personal use to buy groceries, pay my bills etc...
do I need to pay myself a salary? if so do I need a payroll account? This is a one-person company.

Thank you!
[/QUOTE
Je suis disponible, vous pouvez me contacter

 

[torontosm]

Hello,
As the title says how I can get money out of my corporation bank account?
for example, I sold a watch for 50 CAD how I will take it out? for personal use to buy groceries, pay my bills etc...
do I need to pay myself a salary? if so do I need a payroll account? This is a one-person company.

Thank you!

Practically speaking, you can take the money out of your account now for person use. At the end of the year, when you file your taxes, ask your accountant how best to classify those payments to minimize your combined tax burden (corporate and personal). It could be a salary, dividends or even a shareholder loan.

 

[Beltex]

Don't know if they have a similar thing in Canada but in the UK you would have a directors loan account - you take money out and put it back in, runs like a bank account. So long as pay the ballance off no later than 9 months after the company's year end there is no tax to pay.

 

[canuck78]

Practically speaking, you can take the money out of your account now for person use. At the end of the year, when you file your taxes, ask your accountant how best to classify those payments to minimize your combined tax burden (corporate and personal). It could be a salary, dividends or even a shareholder loan.

would really be best to sit down with an accountant or read some books about how best structure your business and decide how you will pay yourself so you have a plan. Using your business account as personal cash flow won’t end up well for most. Many small businesses take no salary for a long time When starting out. Any money needs to go back into the company. You are talking about a very small small business. Most of your profits are likely going to be needed to purchase more products.