WWBD: Funds from mothballed corp?

[schurchill39]

I have a consulting company I am going to be mothballing here but I don't want to shut it down entirely just incase another opportunity comes up in the future. I likely won't have any invoices going out in my next fiscal year, and maybe not for several years after that if our current situtation works out. I've already got everything figured out with my accountant as far as filings etc and she's helped me with a few different options of what I could do with the remaining funds in the company. We've done a decent job in drawing it down over the last year but assuming you had about $70k left in the corp after all taxes, fees etc are paid what would beyond do with the funds on a move forward basis?

I think in any situtaion I'd keep about $15k at a minimum in the general account of the corp to fire things back up (if required) and continue to pay the accountant and any small expenses I could justify being a business cost (quickbooks, Microsoft office subscription, cell phone etc). But here is what I am considering

1. Invest in a low risk ETF or something through the corporation and just let it ride baby
2. Pay it out between me and my partner and just take the tax hit
3. Nothing, its not a significant amount of money and who knows what the future holds.
4. Buy a lifestyle family mover and take it to the casino to put the rest on black at the craps table?

So, WWBD?

EDIT: God dammit, I meant to post this in the finance section.

[pheoxs]

No sense wasting extra tax money on paying it all out today if you are going to keep the company intact and filing every year. I would simply leave the funds in the company and then take out small amounts relative to your current tax brackets where it makes sense. Then you also have it as a buffer should you someday get laid off or want to quit and then can pay yourself out during lower tax years while you take a break in life.

If it's going to sit in the company I'd probably drop it in XEQT or something similar but you should talk to your accountant because investments inside a corporation kinda suck in comparison to what we can do personally but it's still better than not doing anything with it. If you do decide to withdraw it all you could also use up any available RRSP money to push it directly into your personal investments without paying taxes.

[bjstare]

Pop it in a high interest savings account if you don't need it

No point in taking on any risk, but you want to at least have it keeping up with inflation haha.

[ThePenIsMightier]

Liquidate, convert to nickels and fuckin Scrooge McDuck it.



Holy fuck!! I just realized that he's a Scottish stereotype and this needs to be double cancelled as soon as... Oh wait - Scottish people are "white" therefore perpetuating hateful stereotypes against "them" is not banned, but actually encouraged...
My bad. Carry on.

[ercchry]

Do you like your partner?

If you’re going to reboot in the future you might as well put up some L’s and do some “team appreciation” or “AGM” things with it

[ThePenIsMightier]

^Dutch Rudder Thursday is mere hours away. You should definitely look that up and celebrate in style!

[ExtraSlow]

Shareholders meeting once a year can be hotel and meals for a weekend.

[Nufy]

Same issue here...

Mothballed Consulting company with reserve funds...plus a company owned Whole Life Ins policy worth about the same.

Just over 100K total. Not sure what to do about both...

[bigboom]

Why not just invest the funds and let it ride till retirement? At least you shelter the tax on the $70k and can use that to invest? Save yourself $30-$40k in taxes that can safely return ~$2k/year.

[ExtraSlow]

It's not free to keep a corp alive.

[bigboom]

This quote is hidden because you are ignoring this member. Show Quote

It's not free to keep a corp alive.

No it's not but at ~$100/ year for the annual return and if you do your tax return yourself which should be pretty straightforward it's not expensive.

[ExtraSlow]

For sure, it's not a lot, but there's time and money involved, so you have to weigh your options. Don't just keep it and stop filing returns for many years.....