Start withdrawing profits from your business at least five years before retirement to reduce the tax burden when you eventually sell or transfer ownership. This strategy allows you to extract value gradually while maintaining lower personal tax rates, rather than facing a massive taxable event in a single year.
Structure your business to maximize the lifetime capital gains exemption, currently over $971,000 for qualifying small business corporation shares. Ensure your company meets the active business asset test and maintain proper documentation throughout ownership. Many Alberta business owners miss this valuable tax shelter simply…
