Canadian corporation strictly for investments in securities?

Question

Is it legal/reasonable/possible to start a corporation whose sole purpose is to manage and invest a reasonable portfolio of assets into strictly marketable securities (ie. stocks, bonds, options, futures, etc..)?

I have a personal investment account but I'd like to move the assets over to a corporate entity to possibly save on taxes (ie. lower taxes on preferred dividends, interest income, and of course, capital gains). I dont' anticipate needing to remove capital from the corporation (ie. there won't be a need for significant dividends in the reasonable future).

Are there any downsides to doing this? I know that I'd need to file annual reports and perhaps hire a CA/auditor, but is there anything else to be aware of?

Answer 1

NOt muchof a downside, although it is a lot ato go through to save on a little bit of taxes (maybe). Depending on the structure of the corporation, you could well wind up paying as much or more in taxes. The taxes in Canada might be favorable, but if you are a US citizen and the only shareholder, they're still going to get you at some point

Answer 2

and because while is a corporation obligated to some thing "strictly for the solid of united statesa."? it is not. in the event that they pick to, high quality. they at the instant are not obligated to. while is the final time government did some thing strictly for the solid of united statesa.? i won't be able to bear in mind any law or court docket determination that wasn't criticized by employing somebody who did no longer like it. government would not have an ulterior purpose; that's amazingly open in its desire to income extra ability and entire administration. Edit: and that i respectfully disagree. interior the previous ninety-a hundred years or so, that's my place that government has finished no longer something to income the country, regardless of courses that could look as though they are (Social safety, Medicare, Medicaid, etc). they have finished those issues for no different purpose than to income administration of the guy. First they did it in a diffused way; now they sense they do no longer could desire to be so diffused.