This may be a long one and require an excel spreadsheet to clearly answer but here goes. To be clear these values are hypothetical.
Suppose two people have just started a Digital Advertising and Web design company in Ontario and it’s a General partnership. In the first fiscal year, they do $300,000 (including GST) and their total costs (COGS, Operating Expenses, etc.) is $120,000. They have no employees, own no company building or vehicles, would like to set aside $30,000 to keep in the business and then split the rest 50/50.
Are they still each taxed on the $30,000 savings because they are not incorporated?
Roughly how much would they each take home after taxes?
Do they have to pay any EI or CPP for themselves?
How much would each person owe in taxes?
How much GST is owed to the CRA?
I’m sorry if the description is too broad, just trying to get a better understanding of how all this works. Explanations of calculations would be extremely helpful!
Thank you so much!