I am wondering what are the common ways a Canadian Entrepreneur in a General Partnership can pay themselves and the benefits of each method. Specifically, tax breaks, the required contributions for each, etc.
Thank you for all your help so far!!
Ways for a candian entrepenuer to pay themselves in a general Partnership
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Generally speaking, the partners in a general partnership do not receive a salary. However, the profits of the partnership are allocated to each partner based on their % ownership in the partnership. Note that cash-distributions are not taxable to the individual partners. Instead, the individual partners pay personal income tax on the net partnership profits allocated to them in the year.
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