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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!!
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.