Trucking and transport
A good freight year should not sit in a GIC getting taxed at 50%.
You built the fleet on equipment finance and your own signature. The retained earnings from the good years sit in the corporation, taxed every year they sit. And the whole operation runs on two or three people, starting with you.
Licensed across Canada. What to expect
The cash you kept for the next tractor is the cash the corporation is taxed on.
Freight is cyclical, so carriers keep a cushion. Inside the corporation, that cushion is passive income: taxed at about 50% on what it earns, and past $50,000 a year of it, the small business rate starts coming off. A million in GICs at five percent is at that line.
Corporate-owned participating whole life is the container that avoids all of it while the money grows, stays available as collateral when you need a unit, and passes to your family tax-free. Carriers with strong cash flow and a bank relationship often use an immediate financing arrangement so the capital keeps working.
See what leaving it there costs each year, on your own numbers.
Collateral your lender understands
A policy with cash value is an asset the bank can lend against, alongside the equipment it already finances.
Paid with 11.2% dollars
Premiums come from corporate income, not income you pulled out at 53.53% first.
The exit
When you are gone, the death benefit moves to your family through the capital dividend account, tax-free. The trucks do not.
The business is a CVOR, a bank line and three people.
Shippers and brokers extend credit to the company because of who runs it. The safety rating sits with management. The dispatcher holds the relationships. When one of those people is off for six months, the trucks keep rolling for about a week.
Corporate-owned critical illness pays the corporation a tax-free lump sum on diagnosis, usually thirty days later. Key person coverage does the same on the dispatcher or the safety manager. The money lands where the obligations are: driver payroll, fuel, the equipment payments on your guarantee.
The equipment payments
Tractors and trailers on finance, on your personal guarantee. Lenders do not pause because you are recovering.
Covered by a benefit that services the debtDriver payroll
Fuel and drivers go out weekly, whether you are in the office or in a hospital bed. EI sickness pays an owner over 40% nothing unless they opted in a year ahead.
Covered by corporate-owned critical illnessThe dispatcher
The customers who deal only with one person deal with somebody else, unless there is money to put someone in front of them.
Covered by key person coverage
