Re: What to do with extra cash in a Kabushiki Kaisha?
Posted: Wed Nov 03, 2021 8:19 am
The taishokukin system is probably the best. Here are a few more on top:
a) Many small or private owners file for life insurance under the company. This can be booked as a cost for the company and benefits yourself and family.
b) Book any reasonable costs related to the business such as rent, utilities, business meals, etc.
c) Employ family members with tax-efficient salaries.
d) Training, courses, etc. that benefit both yourself and the business.
The balancing act is keeping your salary at a tax-efficient level while having the company pay for things that benefit both yourself and the business. Definitely vet anything with your accountant first though. The tax audits are rough!!
a) Many small or private owners file for life insurance under the company. This can be booked as a cost for the company and benefits yourself and family.
b) Book any reasonable costs related to the business such as rent, utilities, business meals, etc.
c) Employ family members with tax-efficient salaries.
d) Training, courses, etc. that benefit both yourself and the business.
The balancing act is keeping your salary at a tax-efficient level while having the company pay for things that benefit both yourself and the business. Definitely vet anything with your accountant first though. The tax audits are rough!!