Does a Holdco actually make sense? | Corporate Planning | Wealthsimple

A lot of business owners assume a holding company is the "gold standard", but is it right for you? In this clip, Kris Kibler CPA, CA, CFP, TEP, MPAcc myth-busts one of the biggest misconceptions in corporate planning: a Holdco does not solve the passive income problem. Key topics covered: Why an Opco and Holdco are "associated corporations" that share the same $500K small business limit When a Holdco actually makes sense — high liability operating companies, large surpluses needing protection, or an upcoming sale or succession Why physicians and other regulated professionals face unique restrictions on Holdco ownership A real structure example: how surplus can move from an Opco to a Holdco as a tax-free intercorporate dividend, protecting cash and keeping the operating company sale-ready Wondering if a Holdco fits your business? Book a free consultation with a Wealthsimple advisor: https://bit.ly/4iTzrvH #holdingcompany #businessowners #corporatestructure #wealthmanagement #financialplanning #wealthsimple #taxplanning Wealthsimple Investments Inc. (WSII), a member of the Canadian Investment Regulatory Organization (CIRO). For more information, please visit wealthsimple.com/en-ca/legal/legal-disclaimers. The content presented here is for informational purposes only and should not be considered as investment advice. The information has been compiled by Wealthsimple from sources believed to be reliable, but we make no representation or warranty, express or implied, about its accuracy, completeness, or correctness. All investing involves risk and may involve loss of principal. Past investment performance of a security, asset class, portfolio or firm does not guarantee or predict future performance. If you have any questions, please contact a member of the Advisor team at Wealthsimple.