investing in your small business success
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Investing in your small business success. Agenda. Protecting your business Banking outside the box Investing in the future. Protecting your business. The problems you face. Day-to-day managing Long-term viability Liability protection Managing risk. Your challenges. - PowerPoint PPT PresentationTRANSCRIPT
Investing in your small business success
Agenda
Protecting your business
Banking outside the box
Investing in the future
Protecting your business
The problems you face
Day-to-day managing
Long-term viability
Liability protection
Managing risk
Your challenges
Investment and retirement planning
Succession planning
Loss of owner/key person
Attracting/retaining employees
Income taxes and tax liabilities
Creditor and Liability Protection
Business investment income taxes
Innovative banking solutions
Your business – your legacy
Plan a successful succession
Protect your interests
Anticipate future needs
Valuation
Tax Liabilities
Capital Gains Exemption
Estate Freeze
Buy/Sell Funding
Life Insurance
Can your business survive without you?
Sole Owner
Sufficient funds to carry on
Succession planning protects your heirs
Your expectations can be met
Can your business survive without you?
Multiple owners
Death or disability stresses the partnership
Who steps in to act for the deceased?
Chances for a good outcome are poor
Advance planning averts catastrophe
Buy/sell agreements
Buy-out options
Proper funding
Business as usual
Orderly dissolution plan
Life insured investments
Life insurance
Death
Disability
Retirement
Disagreement
How much is it worth?
Adjusted balance-sheet or asset book value
Asset replacement value
Comparison
Pulling the trigger on tax
Tax is triggered by
Sale of the business
A ‘deemed disposition’
Capital gains tax
Change of use
Transfer
Emigration
Death
Asset exchange
Assets pay debts
Transfer to trust
Succession strategies you can use
Use your $500,000 lifetime capital gains exemption*
Consider an estate freeze*
Life insurance or life-insured investments
*Applies to incorporated companies only
Buy/Sell Funding
Shareholders’ agreement
Changes in ownership create financial obligations
Life insurance death benefits funds:
buy-out
tax implications
Buy/Sell Funding
Corporate owned policy*
Lower aggregate premiums
Easier cost allocation
Ensure that premiums are paid
*Concerns about creditor protection, tax consequences and effects of provincial family legislation must be addressed to determine the best approach for your circumstances
Buy/Sell Funding
Individually owned policy*
Paid for with after-tax dollars
Expensive
Confusing
*Concerns about creditor protection, tax consequences and effects of provincial family legislation must be addressed to determine the best approach for your circumstances
Collateral insurance coverage
Tax deductible business expense
Tailored to fit your needs
What impact will the loss of a key person have on your business?
Business is disrupted
Sales decline
Employees’ security is threatened
Creditors become alarmed
Deliverables in doubt
Attract and retain good employees
Financial compensation
Business environment
Life and living benefits insurance
Creditor Protection Strategy
Protect your personal assets
Investments with insurance benefits
Growth from investment
Personally guaranteed debts
Wages and vacation pay to employees
Source deductions owed to Canada Revenue
GST and PST
Health and safety violations
Environmental damage
Strategies for protecting personal assets
Incorporation Spouse’s name Business liability insurance Invest in products that offer creditor protection Hold life insurance contracts personally Professional tax and legal advice Establish a plan while the business is healthy
Banking outsidethe box
Banking outside the box
Highest return on investments
Unique alternatives to borrowing
Innovative products
Simply financing needs
Manulife Bank
Innovation, flexibility, outstanding rates
Business Advantage Account
GICs
Custom investment loans
Flexible, low cost financing
Access Line of Credit Plus
Manulife one Account
Manulife Bank
Investing in the future
Working toward retirement
Retained earnings
Business investment income
Individual Pension Plan
Segregated Funds
Life insurance
GICs and GICs. What’s in a name?
Guaranteed Investment Certificates
Bank
Guaranteed Interest Contracts
Insurance company
Designate beneficiary
Creditor protection
Probate fees and settlement delays avoided
GICs. Security for your portfolio.
Solid foundation for your portfolio
Positive rate of return
Peace of mind
Broad range of investment choices
Segregated Funds
Investment with insurance guarantees
Creditor protection
Protects your beneficiaries
Tax advantages
Benefits for long-term investing
You’ve got leverage
Borrow money to earn money
Interest is tax-deductible
Benefit from compounding
Good potential, higher risk
Business investment income taxes
Option: Invest surplus in GICs and CSBs
CSBs and GICs taxed at top corporate rate
Option: Use surplus to buy life insurance
Tax-deferred growth of the surplus
Tax-free death benefit
Small Business Solutions Recap
Loss of owner/key person
Retirement
Tax liabilities
Succession planning
Creditor protection
Capital Growth
Life-insured investments
Life insurance
Buy/Sell funding
Leveraged investing
Pension plan/IPP
Collateral insurance
Small Business Solutions Recap
Loss of owner/key person
Retirement
Tax liabilities
Succession planning
Creditor protection
Capital Growth
Life-insured investments
Life insurance
Buy/Sell funding
Leveraged investing
Pension plan/IPP
Collateral insurance
Small Business Solutions Recap
Loss of owner/key person
Retirement
Tax liabilities
Succession planning
Creditor protection
Capital Growth
Life-insured Investments
Life insurance
Buy/Sell funding
Leveraged investing
Pension plan/IPP
Collateral insurance
Small Business Solutions Recap
Loss of owner/key person
Retirement
Tax liabilities
Succession planning
Creditor protection
Capital Growth
Life-insured Investments
Life insurance
Buy/Sell funding
Leveraged investing
Pension plan/IPP
Collateral insurance
Small Business Solutions Recap
Loss of owner/key person
Retirement
Tax liabilities
Succession planning
Creditor protection
Capital Growth
Life-Insured Investments
Life Insurance
Buy/Sell funding
Leveraged investing
Pension plan/IPP
Collateral insurance
Small Business Solutions Recap
Loss of owner/key person
Retirement
Tax liabilities
Succession planning
Creditor protection
Capital Growth
Life-Insured Investments
Life Insurance
Buy/Sell funding
Leveraged investing
Pension plan/IPP
Collateral insurance
Solutions for Small Business
Investing
Banking
Insurance
Manulife Investments
Solutions for today
Solutions for tomorrow
Thank you