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Leading tax minimization strategies to enhance your business value.
Corporation Tax Return Services
With all the responsibility and rewards of being your own boss, becoming a business owner changes the way taxes are filed.
Contrary to a personal tax return, a corporation is required to file a tax return each year regardless of whether tax is owing and can be significantly more complex. There are various taxes that a Canadian Controlled Private Corporation (CCPC) may have to pay depending on the activity that is generating the income.
Additionally, corporate owners who earn active business income pay tax at a lower rate and can help defer taxes on income that is retained within the company. Being incorporated provides many advantages, tax-related and otherwise, and should be considered when starting and/or growing a business.
At Numbers Plus, we recognize that our corporate clients have significant assets and entrust us to take advantage of small business deduction (SBD) and/or manufacturing and processing (M&P) credits. We also look to preserve their entitlement to the lifetime capital gains exemption. Put us to work for you to help you achieve your financial goals.
Sole Proprietorships & Partnerships
Small Business Tax Return Preparation
Many small business owners start off as a sole proprietor or as a partnerships. An unincorporated small business income is reported on additional schedule(s) of your personal tax return. The 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 and CPP liability.
Some examples of revenue and expenses that may be claimed are:
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 – 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 once $30,000 in revenue is earned in any consecutive twelve-month period
If you report business income on your personal return then your filing due date is June 15th, however, any amounts payable still must be paid by April 30th.
Here at Numbers Plus, our team of professionals can file your sole proprietor tax return to ensure you are able to maximize your earnings, by claiming all allowable deductions which will reduce your tax liabilities.
An important type of Tax Planning is undertaking activities that cause a Tax Deferral. The basic idea is to utilize procedures that will put off the payment of taxes until a later taxation year. The value of these procedures reflects the time value of money. That is, there is a value associated with making a payment later, rather than sooner.