Self-employed

Are you self-employed? We can take care of your tiresome taxes as well as your books.

Our self-employed tax services include:

  • Prepare Tax Returns for Sole Proprietors.
  • Bookkeeping.
  • Prepare Financial Statements.
  • Financing (e.g. bank loans).
  • Business consulting.

 

 

Client Testimonial:

I had a wonderful experience with Madan Chartered Accountant, they are very responsive, accessible any point of time, accountable and the most important they are trust worthy. Well done Madan and keep the customer focus up, this for sure will take you up and forward. - Mike Sa

Need more information? Call us at (905) 268-0150

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Comments 23

  1. I am the owner of my own start up tech company. This will be the first year filing my income taxes. I wanted to know what sort of items am I required to complete before I file.

    thanks

  2. Hi Alex,
    Before you start filing your company tax return, you should first organize your accounting records as follows:
    1. Create a separate file folder for expense receipts for each month (January to December)
    2. Attach the receipts (in chronological order) to the associated bank statement or credit card statement
    3. Print out all sales invoices and arrange them by date or invoice #
    3. Enter sales invoices, bank transactions and credit card transactions into an accounting program, like Wave Accounting. See http://madanca.com/do-it-yourself-bookkeeping/
    4. Generate the income statement, balance sheet, and trial balance reports from the accounting program
    5. Hire an accountant to prepared the year-end corporate tax return and financial statements

  3. Thanks Allan. I do expect my small business to have over $30,000 in sales this coming year. Can you please provide me instructions on how I can register for HST?

  4. I was recently told I needed to set up a business number for my self employed business. I wanted to know how I would go about getting one?

  5. Hi Jan,

    You will need to provide the CRA with your name and scoial insurance number. Your self employed business can apply for a business number either by calling 1-800-959-5525 or by mail or by completing form RC1 Request for Business number and sending it to your local CRA office.

  6. Firstly it is beneficial being self employed because of many tax deductions. One of these includes if you have a spouse or family member who has performed some tasks for your business and they can justly be paid for their services. This is helpful for children because they can make income that is not taxable if it is lower than the basic personal credit.A major tax saving can occur by claiming a home office. If you spend about 50% of your time there conducting business or by meeting clients, you can deduct a portion of mortgage interest, property taxes, maintenance and utilities including most expenses made to conduct business.
    The last major savings is to incorporate your business either federally or provincially. This has the potential to save much more money than the others because it moves what used to be Self Employment Income (which is taxed 20%- 49%) to Corporate Business Income (which is taxed 15% for the first $500,000 of taxable income).

  7. Hi Purdip,

    You can deduct home expenses if you have a home office and use it primarily to earn business income. If you spend personal time and business time in a portion of the house, calculate the total daily hours to find your daily rate. Then calculate how large the room is in reference to the total house size. By multiplying these numbers you can deduct part of your property taxes, mortgage interest, CCA and maintenance costs such as heat, home insurance, electricity and cleaning materials. You can also carry forward any amount you did not deduct last year. You cannot use these deductions to create a business loss.

  8. Hi,

    How do I report my self employed business’s income? I mostly provide sales but perform a few different services.

    to report your business and professional income, you should fill out Form T2125 Statement of Business or Professional Activities. Please file another T2125 for each other professional or business income source. Make sure for sales to keep track of the GST and discount charges. If recording sales on this form, make sure you fill out the Cost of Goods Sold section while filling out only the business portion of the costs.

  9. Hello, I just started a business and would like to know how to do my own taxes and any benefits for this? Should I hire an accountant?

  10. Hi Yohan,

    One of the best ways to do your own taxes is to get an intuitive tax software like TurboTax which asks questions through a setup wizard. Otherwise, software can only help with what you think is the correct way of doing things and does not take into account incorrect filing strategies or ethics. As a business there are tax benefits to hiring an accountant to do your taxes including profession fee deductions.

  11. Hi Jacob,

    This depends on whether this is considered a commercial activity, if you intend to create profits on these services. This is called the profit test. If you are reselling a product that you once used for personal use or even selling art that has appreciated in value to a neighbour, this is not considered as regular business practice so it is excluded from income. If you intend to make profit or depend on these activities for livelihood while providing this service for many customers, this should be reported on income.

  12. I run a small business but have only reported losses. Ive considered this just to be an expense Should I be considering this as business losses?

  13. Hi Santiago,

    Business losses can be just as important as business gains for tax purposes. Business losses are used to reduce other kinds of income. If you expect profits in upcoming years, you can apply these losses to next year’s gain.

  14. Hi I was very happy to come across your blog. I am starting a subcontractor job all paperwork work done. I just have a question how do I start paying my taxes do I call cra or is there a form that I have to full out. I just don’t want to wait for the end of the year and do a full payment.

    1. Hi Johnny,

      Thanks for your question. You can pay tax installments through online banking. Your bank can show you how to do this.

  15. “Hi,
    I’m an owner operator. How do I go about incorporating my business to minimize taxes? What steps should I take to incorporate?

    Thanks!”

    1. Hi Tecain,


      We can incorporate your business for you. The following steps should be taken.

      1. Determine whether you require a federal or provincial corporation
      2. Determine the officers directors, and shareholders of the corporation
      3. Identify the classes of shares to authorize
      4. Perform a search for the availability of the corporation name to be used
      5. Identify address information of corporation”

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