This blog post will specifically focus on the issue of how to choose a “good” accountant for tax returns. Whether an accountant is “good” will depend on your expectations and… read more →
This post will provide a brief overview of the subject matter from the perspective of a small business owner and assumes the following:
* The business is incorporated and qualifies as a Canadian Controlled Private Corporation (“CCPC”)
* It operates in Ontario
* We are dealing with the 2011 taxation year
If you fail to file you tax return and/or fail to pay your income taxes to the Canada Revenue Agency on time, significant penalties and interest can be added to your tax balance owing. Moreover, the CRA has significant powers under the Income Tax Act (ITA) to collect outstanding tax debt.
If your income tax return has been reassessed by the Canada Revenue Agency with the outcome that you owe significantly more taxes than you initially thought, here is a list of steps for filing a Notice of Objection
Prior to 2000, professionals such as Chartered Accountants and dentists were not allowed to incorporate their practises. This changed in the 2000 Ontario Budget when the Ontario government announced its intention to allow regulated professionals to incorporate their practices.
A Canadian Controlled Private Corporation is the most efficient legal structure to minimize taxes payable on business income. Here are the advantages
When starting a business, most people start as sole proprietorships. If you live in Ontario, you can register your business name through Service Ontario, either at one of their kiosks or online. The registration fee is $60.00 as of today’s writing.
If you expect your business to incur debt as part of its operations (for example, you would regularly purchase of inventory or equipment on credit) or your industry is known to be highly litigious (i.e., there may be a good chance you can be sued someday), then you should consider incorporating your business.
If you are operating a home-based business, you can deduct relevant home business expenses from your income. For simplicity, this post assumes that the business is a sole proprietorship.