I am on CPP Disability and my kids are taking over my self employment business. I have become more disabled and can no longer participate in work at any level. The kids can embrace opportunities based on my contacts and reputation. The kids want to incorporate as they can get contracts for work. They want to incorporate but keep my name as owner - shareholder, while they will be the officers of the corporation. This is so any potential dealings with the corporation will see me as still connected. Am I permitted to own a corporation without losing my CPP Benefits?
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As long as you’re not working it is fine.
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Thanks @jammer . I am so worried about this. I am not eating or sleeping worried about losing my benefits.
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Try not to worry.
I know it is hard.
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Ideally, you should not be involved in the corporation if you want a guarantee of no issues from CPP disability. The problem with family corporations like this (from perspective of CPP and CRA) is that it is easy to manipulate the numbers and who is working, not working, etc. Having you as the “owner” is definitely a BIG red flag that could cause more investigation. CPP and CRA are going to assume an owner of a small business is involved the operations to some extent. The fact that you get income form dividends and not salary will not be determinative on whether you are getting “income” for purposes of CPP. It is very hard to prove that you are only getting passive income from a small business like this and not active income no matter how the income is characterized. I would caution against going ahead with you as owner, but you should get specific advice and perhaps consult Service Canada.
David Brannen
Disability Lawyer with Resolute Legal
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Thank you for this detailed response. I did contact Service Canada and they have not replied. I will heed your advice.