Tax Savings for Business Owners Who Own Multiple Corporations

Are you a business owner with more than one corporation? You could be leaving money on the table if you are not optimizing your tax situation. Let’s check in to see how we can put more tax savings back in your pocket.

1. Optimize Your Corporate Structure

Multiple Businesses: Tax Tips for Business Owners

Having multiple businesses under one corporate umbrella can lead to significant tax savings. By consolidating, you can take advantage of lower tax rates and streamline expenses.


  • Consider setting up a holding company.
  • Consult with a tax professional to determine the best structure for your businesses.

2. Intercompany Transactions

Using intercompany transactions can help balance profits and losses between your businesses, optimizing your overall tax liability.


  • Ensure all transactions are well-documented and at arm’s length.
  • Use management fees, interest on intercompany loans, and shared services.

3. Leverage Tax Deductions and Credits

Each business may qualify for different deductions and credits. Combining these can maximize your overall tax benefits.


  • Utilize deductions such as operational expenses, employee salaries, and benefits.
  • Take advantage of tax credits available for specific industries or business activities.

4. Income Splitting

Income splitting allows you to distribute income among family members who are in a lower tax bracket, thus reducing the overall tax burden.


  • Pay family members a reasonable salary for work they perform.
  • Consider dividends for shareholders in lower tax brackets.

5. Strategic Timing of Expenses and Income

Plan the timing of your expenses and income to align with your tax strategy. By deferring income or accelerating expenses, you can optimize your taxable income.


  • Defer income to the next tax year if you expect to be in a lower tax bracket.
  • Accelerate deductible expenses into the current year to reduce your current tax liability.

6. Utilize Losses Across Businesses

If one of your businesses is operating at a loss, you may be able to use these losses to offset the profits of your other businesses.


  • Maintain accurate and separate records for each business.
  • Discuss with a tax professional about the possibility of carrying forward or back losses.

7. Maximize Retirement Contributions

Make the most of retirement plans and contributions. These not only secure your future but also provide current tax deductions.


  • Set up retirement plans such as RRSPs or TFSAs for yourself and your employees.
  • Contribute the maximum allowable amount to reduce your taxable income.

8. Partner with Expert Accountants

The complexities of managing multiple businesses can make tax optimization challenging. Partnering with expert accountants can ensure you are taking full advantage of all available tax strategies.


  • Seek out accountants who specialize in corporate tax planning and business advisory services.
  • Regularly review your tax strategy with your accountant to adapt to any changes in tax laws or business circumstances.

Owning multiple businesses presents unique challenges and opportunities. By optimizing your corporate structure, leveraging intercompany transactions, and utilizing available deductions and credits, you can significantly reduce your tax liability. Don’t navigate these waters alone—partner with expert accountants to ensure you’re maximizing your savings and focusing on what you do best: running your businesses.

Contact IDM today for tailored business advice and comprehensive tax planning services. Let’s put more money back in your pocket.

The IDM Team

Dedicated to providing clients with premium tax and accounting services.