Paying yourself as the owner of a small corporation in Ontario can be done through a salary, dividends, or a combination of both. Taking a salary provides you with a steady income, allows you to contribute to the Canada Pension Plan (CPP), and makes it easier to prove income for personal loans or mortgages. Dividends, on the other hand, are payments made from the company’s profits and are taxed at a lower rate than a salary, which can result in tax savings. However, dividends don’t contribute to CPP and may lead to unpredictable income. Many business owners choose a mix of salary and dividends to balance steady income with tax efficiency. When deciding how to pay yourself, consider your personal financial needs, tax situation, and long-term business goals. It’s wise to consult with an accountant or tax professional to structure your payments in the most beneficial way for both you and your business.