The Entrepreneur’s Guide to Wealth Management

Running a successful business is an incredible accomplishment, but for many entrepreneurs, the line between personal wealth and business success often gets blurred. As business owners, we tend to focus on growing our companies, investing time and resources to ensure their success. But what happens when it’s time to reap the rewards? How do you ensure that your personal wealth and financial security are equally robust?

At The St-Georges Group, we understand the unique challenges entrepreneurs face when managing their wealth. From choosing the right business structure to planning for retirement, each decision can have long-term impacts on your financial future. This guide will provide you with an overview of the key aspects of wealth management that every business owner should focus on to grow, protect, and preserve their wealth.

The foundation of successful wealth management starts with selecting the right legal structure for your business. There are currently three main types of business structures available to business owners in Canada: sole proprietorships, partnerships, and corporations. No matter the legal structure you choose, it will affect your business and personal wealth growth as well as your succession planning.

As an entrepreneur, it’s essential to understand the differences between these options, each presenting its own set of advantages and disadvantages. While corporations offer advantages such as limited liability and attractive tax-saving options, partnerships and sole proprietorships are more affordable, but are closely tied to one or more individuals who assume full responsibility and risks.

A strategic wealth advisor, in collaboration with a tax accountant and a business lawyer, can help you choose the legal structure for your business that best suits your current situation and future goals. As your business evolves, they will help you review this structure to ensure it remains the best fit for your current situation.

Learn more about choosing the right legal structure.

Taxes are an inevitable part of doing business, but strategic planning can help you minimize your burden. Corporate investment strategies—when applied effectively—can lead to substantial savings while accelerating long-term wealth accumulation.

These strategies include:

• Investing within your corporation allows you to take advantage of lower tax rates on active income and accelerate the growth of your investments through compounding.
• Focusing on capital gains over interest income, which are taxed more favourably.
• Leveraging the Capital Dividend Account (CDA) to make tax-free withdrawals of eligible capital gains and life insurance proceeds.
• Utilizing corporate-class mutual funds, which allow for tax deferral and efficient income distribution.
• Implementing corporate-owned life insurance, which not only provides protection but can also enhance the CDA.
• Setting up an Individual Pension Plan (IPP) to grow retirement savings in a tax-efficient manner for incorporated business owners.
• Optimizing your salary vs. dividend mix to balance tax efficiency and contribution room for retirement savings vehicles like RRSPs and CPP.

Each of these tools can play a role in reducing your effective tax rate while supporting your broader investment and retirement objectives.

Learn more about tax-saving corporate investment strategies.

Growing your wealth is important, but so should protecting it. Comprehensive risk management strategies help safeguard your business and personal assets against unforeseen events.

Key risk management strategies include:

• Investment Diversification
• Strategic Insurance Coverage
• Asset Protection Planning
• Business Continuity Planning

Wealth protection should be proactive, not reactive. Working with a wealth management advisor can help you manage your risks to ensure your business remains resilient, even in a downturn or crisis.

Learn more about wealth protection and risk management.

Many entrepreneurs wish to grow their wealth so that it can be passed on to future generations. Estate planning is the wealth management strategy that ensures your assets are passed on according to your wishes while minimizing tax burdens for your heirs. This includes the drafting of many important legal documents, including wills, shareholder agreements, buy-sell agreements, and more.

Failing to implement proper estate planning can lead to serious financial and operational consequences. Key risks include:

• Higher Tax Burden: Without structured planning, your estate may face unnecessary capital gains taxes and probate fees*.
• Business Disruption: The absence of a clear succession plan can leave your company vulnerable during a transition period.
• Family Disputes: Ambiguity about roles and inheritance can cause tension or conflict among heirs.
• Delayed Wealth Transfer: Assets may be tied up in legal processes, delaying financial support to your family or business partners.
• Loss of Control: If you’re incapacitated without proper documentation, critical decisions may be made by unintended parties.
• Proactive estate and succession planning ensures that your legacy is preserved and your intentions are respected.

Explore key elements of estate planning.

*In most provinces, probate fees are calculated as a percentage of the estate’s value, often resulting in significant costs for larger estates. In Quebec, however, there are no probate fees levied on notarial wills.

While estate planning secures your assets, succession planning ensures your business can thrive beyond your leadership. For family-owned companies, this process goes far beyond deciding who takes over. It requires careful preparation, mentorship, and communication.

Key aspects of effective succession planning include:

• Identifying a successor early and involving them in the business gradually.
• Implementing structured transition plans, including defined roles, performance metrics, and mentorship.
• Maintaining family harmony through governance structures like family councils and decision-making protocols.
• Preparing for third-party sales, which require strong management systems and documentation to maximize valuation.
• Using financial tools like estate freezes and trusts to transfer future growth and reduce tax liabilities.

Whether you’re keeping the business in the family or selling to a third party, thoughtful planning ensures your company’s value and legacy are protected. For many of our clients, the right succession plan blends financial foresight with emotional readiness.

Learn more about business succession planning.

Investing in your business is necessary and has countless benefits. However, devoting all your resources into your business can leave you financially vulnerable. As an entrepreneur, you also need to create personal wealth outside your business to diversify your assets and protect your financial future.

There is no one-size-fits-all approach. The investment strategies to adopt should evolve over time as your company and family grow. The key is to find the right balance between reinvesting in your business and building personal wealth, and that requires strategic planning. By leveraging both personal investments and business growth strategies, you can ensure financial security, whatever the market’s fluctuations.

Torn between investing in your business and building your personal wealth? Learn how to build your personal wealth alongside your business success here.

Another investment-related question often asked by entrepreneurs is: Should I pay down debt or invest my surplus cash?

Both options have merit, and the right choice depends on your financial goals, interest rates on outstanding debts, potential investment returns, and risk tolerance.*

Paying off high-interest debt provides a guaranteed return equivalent to the interest rate, improves cash flow, and strengthens your balance sheet. On the other hand, strategic investments—whether in market securities, business expansion, or tax-advantaged vehicles like IPPs or corporate-class funds—can yield significant long-term gains.

In many cases, a hybrid approach works best: prioritize high-interest debt while allocating some surplus to diversified investments. This balance supports stability and growth.

Read more on surplus cash, debt, and investment.

*It’s also important to consider whether the debt is personal or corporate, and if the interest is tax-deductible, as this can impact the true cost of borrowing.

Retirement planning as a business owner goes beyond just selling your company. You need to diversify your income sources and plan for a lifestyle that matches your aspirations. Individual Pension Plans (IPPs), corporate dividends, and personal savings all play a role in maintaining financial stability throughout retirement.

Planning your exit strategy early not only ensures a smooth transition but also maximizes your wealth by reducing taxes and safeguarding assets.

Plan your retirement with confidence.

Navigating the financial complexities of entrepreneurship is easier with the right support. Too often, entrepreneurs rely on the advice of just one person. However, wealth management is complex and requires the collaboration of many financial experts.

A well-balanced wealth management team – led by your wealth management advisor – combines the expertise of tax, legal, insurance, and investment professionals to provide you with a cohesive, personalized strategy that evolves as your business and personal life do. With this team by your side, you can focus on developing your business while knowing your personal wealth is being handled with expertise and precision.

Discover how to build your wealth management team.

Wealth management for entrepreneurs isn’t just about growing your wealth—it’s about protecting and preserving it for the future. At The St-Georges Group, we’re here to help you make informed decisions that align with your personal and professional goals. Let’s work together to build, protect, and preserve your wealth for generations to come. Contact us to schedule a confidential consultation.