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Top Changes Small Business Should Be Aware of from the Federal Budget Watch Video
What are the top changes in the 2013 Federal Budget that business owners should know about?
Can I deduct research expenses relating to starting a new business?
Where a taxpayer is carrying on a business and incurs expenditures on research to determine whether to expand his/her business, to determine the desirability of developing a new product or line of products, to develop a more efficient manufacturing process, to improve administrative procedures These expenses would be considered current operating expenditures and are deductible … Continue reading Can I deduct research expenses relating to starting a new business?
What are the federal budget tax consequences? Watch Video
Are you wondering about the federal budget tax consequences?
Can I add a shareholder to my corporation at any point in time?
A common mistake many business owners make is that they add shareholders (often family members) to their company for no money at all or very little money (e.g. $100). Now you wouldn’t add me to your corporation for nothing! The CRA takes a similar view. Fair market value must be paid by all individuals that … Continue reading Can I add a shareholder to my corporation at any point in time?
Can my company declare a bonus to reduce taxes?
If your corporation has surplus profits for the year, then consider accruing a bonus payable to you or your family members. The bonus does not have to be paid at the end of the year, but simply recorded as a liability. Your corporation will receive a tax deduction for the amount of the bonus accrued. … Continue reading Can my company declare a bonus to reduce taxes?
What’s the tax advantage of using a Health Welfare Trust?
If you’re self-employed, and do not have dental or medical benefits, then a Health Welfare Trust (HWT) can save you a lot in taxes. Here’s how it works: Your corporation pays a specified amount (e.g. $5,000) to an Insurance Company that administers the HWT for your company Your corporation will receive a tax deduction for … Continue reading What’s the tax advantage of using a Health Welfare Trust?
What is the GST/HST Quick Method and who can use it?
The GST/HST Quick Method is a simplified type of accounting available to small businesses for calculating their net sales tax for GST/HST purposes. The major benefit of choosing this method is reduced paperwork and easier calculation. This option is available for small businesses with annual revenue of less than $400,000 (restrictions may apply). How it … Continue reading What is the GST/HST Quick Method and who can use it?
When is the deadline for remitting HST collected and filing the HST return to the CRA for a sole proprietorship?
If you have a corporation that has an annual reporting period, you would have to remit any amount owing no later than three months after the year end which is also your filing deadline. An exception applies for individuals – sole proprietors. If you have a December 31st fiscal year-end, your payment is due April … Continue reading When is the deadline for remitting HST collected and filing the HST return to the CRA for a sole proprietorship?
What are the Tax planning tips for business owners? Watch Video
This article is about tax planning tips for self employed individuals,
What are the tax implications for a Canadian business that earns income in the U.S.?
As a Canadian business that is deriving income from sales that occurred in the US you will be required by the IRS to report this income on one of the following tax returns, depending on your organizational structure: • 1040-NR • Form 1120-F• Form1065 The IRS has the right to levy income tax on business income … Continue reading What are the tax implications for a Canadian business that earns income in the U.S.?
What are the benefits/disadvantages of structuring a farm business as a sole proprietorship or a corporation? How is HST dealt with for the sale of the business?
Corporation vs. Sole Proprietorship Choose corporation because: ability to control timing and amount of taxable income by being able to choose dividends/salary whenever there is a personal need. As a sole proprietorship, everything earned through the business would be taxed at the personal rate. lower corporate tax rate of about 15% federal and provincial combined (if you become a … Continue reading What are the benefits/disadvantages of structuring a farm business as a sole proprietorship or a corporation? How is HST dealt with for the sale of the business?
How do I know if I have to charge GST/HST to my clients?
Generally, GST/HST registrants must collect GST/HST from customers for goods sold or services provided in Canada. However, GST/HST does not apply to items that are zero-rated supplies or exempt supplies. Read more on how to determine if the goods & services you are providing are GST/HST exempted.
How do I make income tax payments to the CRA for my business?
If you have to make an installment payments or pay the remaining balance of your Corporation’s income tax, you can do so as follows: Option 1 – Electronically The following banks will accept corporate income tax payments electronically: Scotiabank RBC Royal Bank TD Canada Trust If you have an account with any of the above … Continue reading How do I make income tax payments to the CRA for my business?
I need a medicine professional corporation setup, what should I be aware of?
A professional corporation (PC) is not like a standard corporation. A PC’s business activities are limited to that of the profession, e.g. practice of medicine. The most common professions authorized to register professional corporations’ are accountants, lawyers, dentists and doctors. A medicine professional corporation must be in compliance with the College of Physicians’ and Surgeons’ … Continue reading I need a medicine professional corporation setup, what should I be aware of?
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