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Self-employed tax services

If you are a self employed entrepreneur and you are worried about your self-employed taxes, Madan Chartered Accountant can provide you with a range of self employed tax and accounting solutions. We can take care of your tiresome taxes, as well as the burdensome accounting associated with your business.

Our self-employed tax services include the following:

  • Self-employed Tax Return preparation.
  • Bookkeeping.
  • Financial Statements.
  • Financing (e.g. bank loans).
  • Business consulting.

 

How to save taxes for self-employed in Canada

By: Allan Madan | July 18th, 2010 | Tax, US Tax, Canadian Tax Read more

If you want to know the innovative ways in which you can save endlessly on taxes, then read on. These proposed strategies are simple but extremely effective. A few, simple techniques highlighting the ways in which you can save on self employed taxes can help your business out immensely.

 
 

Mississauga Accountants - How to save business taxes in Canada

By: Allan Madan | Sep 6th, 2009 | Tax, US Tax, Canadian Tax Read more

Whether you are self employed, an investor, or just another individual frustrated with the large amount of tax payments, we can help you save. Whether its self- employed tax, corporate income tax or just soaring income tax rates that are getting you down, we can provide solutions. Continue reading, to get detail on the numerous ways in which you can save thousands of dollars.

 
 

Should I pay myself salary or dividends from my corporation as a business owner

By: Allan Madan | Dec 8th, 2010 | Tax, US Tax, Canadian Tax Read more

Being self-employed and running your own business always gives rise to the old age question of paying yourself a salary or dividends. In order to save on self-employed tax and accounting costs, this question should be carefully thought about. Read on to find a comprehensive list of the advantages and disadvantages of paying yourself a salary or dividends, in order to make the most educated choice.

 
 

About the Author – Allan Madan

Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.

If you find this information useful, kindly +1 and follow Allan Madan on Google Plus by clicking on these two buttons.

Comments  

 
# Alex 2014-09-15 22:00
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
 
 
# Allan Madan 2014-09-16 18:39
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
 
 
# Prince 2014-10-02 15:18
Hi,
I am a self employed individual. I want to know if I need to register for a hst account.
 
 
# Allan Madan and Team 2014-10-02 15:20
Hi Prince,

If your sales exceed $30000 then yes you will be required to register for a Hst account.
 
 
# Prince 2014-10-16 19:38
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?
 
 
# Allan Madan and Team 2014-10-16 19:38
Hi Prince,

You can register your HST account for your small business by:

- Internet at http://www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/bro-ide/menu-eng.html.
- Phone at 1-800-959-5525.
- Mail or Fax by completing form RC1 request for Business Number http://www.cra-arc.gc.ca/E/pbg/tf/rc1/README.html

We do offer theses services at our firm along with HST returns for your sole proprietorship.
 
 
# Jan 2014-10-24 21:25
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?
 
 
# Allan Madan and Team 2014-10-24 21:26
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.
 
 
# Kevin 2015-01-02 23:06
Hi,
I am newly self employed and was wondering how I can maximize tax savings this year.
Thanks
 
 
# Allan Madan and Team 2015-01-02 23:07
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).
 
 
# Purdip 2015-01-12 16:43
Hi,

Hello, I am self employed and use a home office. How do I account for this for tax purposes.
 
 
# Allan Madan and Team 2015-01-12 16:43
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.
 
 
# Lacelle 2015-01-12 16:44
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.
 
 
# Yohan 2015-01-18 23:24
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?
 
 
# Allan Madan and Team 2015-01-18 23:24
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.
 
 
# Jacob 2015-01-18 23:25
I do some consulting for friends and some ebay sales. Do I need to report this under self employed income?
 
 
# Allan Madan and Team 2015-01-18 23:26
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.
 
 
# Santiago 2015-01-18 23:26
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?
 
 
# Santiago 2015-01-18 23:26
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.
 

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