08/25/2026
CAN YOUR CORPORATION INVEST ITS PROFITS?
Yes! A corporation can generally use its retained profits to make investments, including stocks, bonds, and other assets โ but there are important tax and corporate rules to consider.
๐ Why might a corporation invest retained earnings?
Instead of immediately withdrawing all profits personally, a corporation may choose to retain some funds and invest them for potential growth.
Before making investment decisions, consider:
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Corporate investment and tax implications
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Passive investment income
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Stocks, bonds, and other investment assets
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Record-keeping and corporate accounting
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How investment income may affect your corporation
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The difference between corporate and personal investing
MD Legals can help business owners navigate corporate legal matters and understand the legal considerations surrounding their businesses.
๐ Learn more: mdlegals.ca