Interesting video, I learned some things. I"m in a Pickle. I need to file returns for my Limited Company for the past 10 years. I used to work as a Framer and used my LTD company to get paid, then 5 years ago I converted my Numbered company into a Named company of a different type. now I have a Mobile Automobile Detailing business that is quite successful now. It's still just me though. Can you recommend my best course of action. I owe around $10K in GST payments. Can I do this myself online or do I need an Accountant?
Your channel is very helpful to my husband and myself right now. I'm learning alot from your videos about pro and cons about incorporating. Thanks so much
Good tips! Thank you! I'm wondering about the extras beyond RRSP's. You kinda hinted at insurance policies. What are your thoughts on IRP (insured retirement plans) for corporations?
Perfect! Right now I am building wealth using RRSP, but now that I am buying rental property I am thinking about advantages of creating a Corporation (I am in a high bracket) so, wondering if we can have a phone consultation?
So could someone just file their small business taxes as a normal income even without a T4 slip, but keeping all of the invoices and receipts for expenses for proof incase the CRA asks for it?
@@derryckmacaulay8754From what I understand, it depends on whether it is incorporated or a sole proprietorship. For incorporated, you have to file two different taxes. One for your T4 income, and one for the corporation. You can just manually fill out a T4 on a tax software program from what you pay yourself. The corporation needs to keep a detailed and tidy accounting record and receipts and file its own tax return. For sole proprietorship, you only have to file one tax return and can manually fill out a T4, but should also keep a tidy accounting record with receipts. For both you need to contribute to your CPP, which is a surprisingly large amount for a small business owner. The most recent tax changes this year screw over small incorporated businesses if they’re built around capital gains, so sole proprietorship gets better tax treatment if that is the case. Lot of information, but that’s the answer 😂
I work full time and paid salary and looking to start a sole proprietorship small business to start with for couple years. If I spend $30,000 in equipment for the business, how do I claim this expense towards my income tax and what's the tax percentage CRA takes?
Hello, thank you for the video. That was very helpful. One question - to qualify for the small business tax deduction (lower corporate tax rate), we need to earn less than $500,000 on our first income. Just to clarify, this is per year and not lifetime aggregate, correct? So every year we can qualify and claim the small business deduction as long as our income every year stays under $500,000 and we are Canadian owned company? That is of course in case law doesn't change. Thank you
I'd love to have a consultation with an accountant regarding this very subject, I am currently an employee but am considering opening a small business simply to have a tax shelter and create a very small amount of income on the side. Where would one go to find such an accountant?
If you have your own professional corporation but also have another job where you are paid as an employee, can you keep all your earnings from your professional corporation in the corporate bank account and not pay yourself a salary or dividends?
I think your corporation would have to be paid directly instead of to you personally, and you would need to have an agreement that you are doing the work with the company as an independent contractor (if you're wanting to get the SBD, while avoiding your income being classified as that of a PSB) instead of being an employee of that company.
Im planning on starting a small business as a self employed carpenter. Am I correct in assuming that it is more beneficial to do this under the umbrella of incorporation? What would my total tax rate as an incorporation BE? For instance GST 7% 2% SBD = Total of 9% ? If you get the SBD, and then spend money earned in the company on your personal expenses.. Do you then get taxed again as personal income? Im not sure of all the fine details and struggling to understand/have a clear picture moving forward. Thankyou!!
Can you help me I am so lost. I want to register my company but I am the only person working. Aren't I getting screwed over? because I will have to pay the tax twice? I do not want to give myself a "salary" per say, my income would be literally everything the company gets, Maybe I will spend it on stuff for the company, maybe I will save it for the next year, maybe I will buy food with the money. Its so confusing. Do I "become" the company and only have to do the 1 income tax at the lower rate? or do I have to do both? And if I have to do both, can I just say I am "not working" and just spend freely whatever the company makes? And if I can't do that, it kinda feels like the company is actually property of the government if I can't do what I want with the company $
Hi there, I am looking to get into consulting business for corporate sales with big commissions contract. No salaries straight up commission ranging from 500K to 2 Millions + CAD what is the best structure to minimize the tax burden? Any suggestions will be greatly appreciated! Thank you
Hi Luciana - In general the same rules apply to sole proprietors in Alberta. I'm not sure if you're referring to anything in particular, but the general idea is the same.
Good video. You didn't really mention Corporately held Whole Life Insurance or Individual Pension Plans. Curious about your thoughts on those two strategies?
I think these can be great strategies as long as the business cash flows are secure. This video was for the first line of tax planning, but would love to do a follow up covering these strategies as well, thanks for the comment!
Great video Joe! I have a question: For someone who is working for an employer and paying personal income taxes and wants to start a home based business what are the steps to get it going? It feels very complicated.
Thanks for the question! You should check out our guide on that subject. Would be a great video too I think. www.avalonaccounting.ca/starting-your-business-guide
Hi Vince - so sorry to hear this! If you are just starting out understanding Canadian taxes, check out our videos on Personal and Corporate taxes explained. Those are great places to start!
How are you building wealth? RRSPs or keeping the capital in your company? Stashing that cash somewhere else?
Interesting video, I learned some things.
I"m in a Pickle. I need to file returns for my Limited Company for the past 10 years. I used to work as a Framer and used my LTD company to get paid, then 5 years ago I converted my Numbered company into a Named company of a different type. now I have a Mobile Automobile Detailing business that is quite successful now. It's still just me though.
Can you recommend my best course of action. I owe around $10K in GST payments. Can I do this myself online or do I need an Accountant?
Your channel is very helpful to my husband and myself right now. I'm learning alot from your videos about pro and cons about incorporating. Thanks so much
Amazing video. Been searching for this for a while. Thank you.
Thank You!! Best explanation of personal & corporate tax EVER!
Thank you for the video!!! We learn a lot with you! Thank you!
I like your video presentation. It is informative too, at the same time. Thanks a lot for your guidance!
Thanks Aryana - glad you've found it helpful!
12 times is relatable my friend!
Very impressive. Good work Joe
Can you talk more on Life insurance and holding company strategies for small builders owners
Hi! You bet - we're coming out with some tax planning content that includes these topics in the next few weeks.
Great video! Thanks
Subscribed !!
What advice do you have for a small business owner sole proprietor in terms avoiding high tax deductions
Great video very helpful
Good tips! Thank you! I'm wondering about the extras beyond RRSP's. You kinda hinted at insurance policies. What are your thoughts on IRP (insured retirement plans) for corporations?
Ty
hello,
what is tax on option trading income?
Perfect! Right now I am building wealth using RRSP, but now that I am buying rental property I am thinking about advantages of creating a Corporation (I am in a high bracket) so, wondering if we can have a phone consultation?
What accounting software is the best/cost effective to keep track of the expenses? Thanks.
So could someone just file their small business taxes as a normal income even without a T4 slip, but keeping all of the invoices and receipts for expenses for proof incase the CRA asks for it?
Did you ever get an answer?
@@derryckmacaulay8754From what I understand, it depends on whether it is incorporated or a sole proprietorship.
For incorporated, you have to file two different taxes. One for your T4 income, and one for the corporation. You can just manually fill out a T4 on a tax software program from what you pay yourself. The corporation needs to keep a detailed and tidy accounting record and receipts and file its own tax return.
For sole proprietorship, you only have to file one tax return and can manually fill out a T4, but should also keep a tidy accounting record with receipts.
For both you need to contribute to your CPP, which is a surprisingly large amount for a small business owner. The most recent tax changes this year screw over small incorporated businesses if they’re built around capital gains, so sole proprietorship gets better tax treatment if that is the case.
Lot of information, but that’s the answer 😂
Thank you!
good content
I work full time and paid salary and looking to start a sole proprietorship small business to start with for couple years. If I spend $30,000 in equipment for the business, how do I claim this expense towards my income tax and what's the tax percentage CRA takes?
Thanks
Hello, thank you for the video. That was very helpful. One question - to qualify for the small business tax deduction (lower corporate tax rate), we need to earn less than $500,000 on our first income. Just to clarify, this is per year and not lifetime aggregate, correct? So every year we can qualify and claim the small business deduction as long as our income every year stays under $500,000 and we are Canadian owned company? That is of course in case law doesn't change. Thank you
Yes, the $500K is a per year earnings limit to get the Small business deduction.
I'd love to have a consultation with an accountant regarding this very subject, I am currently an employee but am considering opening a small business simply to have a tax shelter and create a very small amount of income on the side. Where would one go to find such an accountant?
If you have your own professional corporation but also have another job where you are paid as an employee, can you keep all your earnings from your professional corporation in the corporate bank account and not pay yourself a salary or dividends?
I think your corporation would have to be paid directly instead of to you personally, and you would need to have an agreement that you are doing the work with the company as an independent contractor (if you're wanting to get the SBD, while avoiding your income being classified as that of a PSB) instead of being an employee of that company.
Keep making videos!
Im planning on starting a small business as a self employed carpenter.
Am I correct in assuming that it is more beneficial to do this under the umbrella of incorporation?
What would my total tax rate as an incorporation BE?
For instance GST 7% 2% SBD = Total of 9% ?
If you get the SBD, and then spend money earned in the company on your personal expenses.. Do you then get taxed again as personal income?
Im not sure of all the fine details and struggling to understand/have a clear picture moving forward.
Thankyou!!
Did you ever get a clear answer on this?
no I might need an accountant@@anazr15
Hi. How are you? what percentage of buyer gives ratings on amazon
Many thanks. :-)
Can you help me I am so lost. I want to register my company but I am the only person working. Aren't I getting screwed over? because I will have to pay the tax twice? I do not want to give myself a "salary" per say, my income would be literally everything the company gets, Maybe I will spend it on stuff for the company, maybe I will save it for the next year, maybe I will buy food with the money. Its so confusing. Do I "become" the company and only have to do the 1 income tax at the lower rate? or do I have to do both? And if I have to do both, can I just say I am "not working" and just spend freely whatever the company makes? And if I can't do that, it kinda feels like the company is actually property of the government if I can't do what I want with the company $
how much do you charge for corporate filing tax
Hi there, I am looking to get into consulting business for corporate sales with big commissions contract. No salaries straight up commission ranging from 500K to 2 Millions + CAD what is the best structure to minimize the tax burden? Any suggestions will be greatly appreciated! Thank you
My self employed income is$40000 do I have to remit the hst on the whole total Thanks
Hey I'm from India, i tech students
Can you explain all accounting software and all business tax like aa GST tax
Good morning, so please help me here to understand. If I am sole proprietorship Alberta the same rules applies?
Hi Luciana - In general the same rules apply to sole proprietors in Alberta. I'm not sure if you're referring to anything in particular, but the general idea is the same.
Good video. You didn't really mention Corporately held Whole Life Insurance or Individual Pension Plans. Curious about your thoughts on those two strategies?
I think these can be great strategies as long as the business cash flows are secure. This video was for the first line of tax planning, but would love to do a follow up covering these strategies as well, thanks for the comment!
Great video Joe! I have a question: For someone who is working for an employer and paying personal income taxes and wants to start a home based business what are the steps to get it going? It feels very complicated.
Thanks for the question! You should check out our guide on that subject. Would be a great video too I think. www.avalonaccounting.ca/starting-your-business-guide
@@AvalonAccounting great video, plz also have a video for startups, especially those with no income in the first year!
@@AvalonAccounting by the way the form does not appear on your website to download the booklet
@@Wowtommy Just recorded this yesterday and will be editing it shortly. Stay tuned!
@@Wowtommy Hmm... it seems to be showing up for me... shoot us an email for a copy hello@avalonaccounting.ca
I wish this was dumbed down a bit. I feel so hopeless knowing this is useful information to which I just do not understand at all.
Hi Vince - so sorry to hear this! If you are just starting out understanding Canadian taxes, check out our videos on Personal and Corporate taxes explained. Those are great places to start!
No it doesn't make sense. Go on.