Small business owner (salary/dividend)

[sexyaccord]

I know there are some working in the accounting field on here.
I'm familiar with the procedures with paying a salary, however cloudy in terms of dividends.

How does a small business declare dividend to its owner?
just write a cheque? I believe there is T5's to issue out

also if there are 2 shareholders, how do you just pay one of them?

any help would be appreciated.

[RacePace]

How to Pay Yourself - Corporation - Wizebiz | Wizebiz

If you issue 2 different classes of shares between the two of you, you can issue dividends on only one of those shares and thus only pay one person

[4444]

above says it all

you will need a and b shares - same vote, but you can pay out as you like - but get a shareholder's agreement.

div are better than salary, no EI and CPP - although, no RRSP and no earned income (of sorts - i'm not sure how mortgage ppl see this, whether they disregard dividends as 'investment income' or whether they realize it's earned... but that's a different story)

i personally don't like RRSP's as investment vehicles, max ur TFSA's, first always, forget RRSP, enjoy getting more at the end of the day

[rslater]

Me and my business partner pay ourselves in dividends. Especially in our first year because we were just withdrawing from our loan accounts so we did not pay any personal taxes.

I just met with my bank lady and she said that if we are paying ourselves in dividends and granted we did not show any income, when it comes to mortgages they take this all into account.