The right mix of salaries and dividends to the owner manager will ensure taxes are minimized while taking into consideration RRSP entitlements and CPP requirements. Income splitting may also be possible if a spouse or family member provides services for which the individual can be paid a reasonable salary. This works particularly well where your spouse or children have little or no income.

Keep in mind that recent changes to the taxation of "Eligible Dividends" from Canadian corporations may affect your salary/dividend mix decisions going forward.

If a family trust owns shares of a corporation, dividends must be paid on or before December 31st in order to be included in the family trust's income for its taxation year ending December 31, 2007.

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