Most small business owners start off as a sole proprietor or with partnerships, often deciding to incorporate as a company increases in business and profit. An unincorporated small business tax return is captured in additional schedule (s) of your personal tax return. Your revenues and expenses must be reported on a Statement of Business Activities and the accumulated net income is what will be considered when determining your tax liability.
Some examples of revenue and expenses that may be claimed is:
- Home office – Only applies if you do not have another office location or if more than 50% of your work is exclusively done at home where you regularly meet with clients.
- Automobile – Only applies for business purposes only. A mileage log should be kept as proof for kilometers driven.
- HST – Registering and/or collecting HST (on other sales tax) is a requirement when $30,000 in revenue is earned on a twelve-month period.
If you choose to report business income on your personal return (i.e. schedule 2135) then your tax return does not need to be filed until June 15th, however, any amounts owing must be paid by April 30th.
Here at Numbers Plus®, our team of experts can file your sole proprietor tax returns to ensure you are able to maximize your earnings, by professionally reducing your tax liabilties. Let us make sure you are legally taking advantage of all tax laws available to you.
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