Corporate Taxes
With new rules, new governments and new policies, the rules and regulations for small business and small to medium business corporations change all the time. At On The Money Books, we can help you make sense and keep up to date on all the rules with what deductions you have available, and what rules you have to follow when filing income taxes for your corporation. Our professionals will also help find opportunities to reduce the taxes you need to pay so you can keep your hard earned money. Our experience will help you plan your taxes and make sure you do not fall for short term solutions and set you up for long term success. These are just some of the services we can provide your corporation.
Tax Advantages and Disadvantages of Incorporating
At On the Money books we can help you decide whether it is right to incorporate your small business. Incorporating your business reduces the liability on your personal finances. Your corporation will take on the liability of your business rather than you personally, but this also will mean more paperwork and less flexibility when filing your personal taxes. A corporation must file income taxes for the corporation but as a sole proprietor you can use losses in your business to reduce personal income to prevent paying more taxes. Our professionals at On The Money Books can consult with you to determine if the best financial decision for your business is to incorporating your business.
T2 Corporation Income Taxes
You will need to file income taxes for your business if it has been incorporated in addition to your own personal income taxes. These taxes are due six months after the end of your business’s fiscal year. If your fiscal year matches up with the calendar year then they are due at the same time as your personal taxes but if you choose to have a different fiscal year they are due six months after the end of your fiscal year. We will make sure your taxes are filed on time depending on your fiscal year. When filing your T2 tax return, you need to provide financial statement information. We will take your finances and compile a General Index of Financial Information (GIFI) which is a list of financial statements where each item on the list is given a unique code. We compile the GIFI from your financial statements and we will use the GIFI to file your T2 tax return form. If you have a dormant or inactive corporation, you still need to file a T2 tax return. We can help you file a nil T2 Short Return for your corporation.
Small Business Tax Deduction
If you are a small business and you have decided to incorporate your business you may qualify for the Canadian Small Business Deduction (SBD). The SBD allows a small business corporation to have a reduced corporate income tax for that corporation’s fiscal year. The SBD is calculated by using your income and your corporation’s business limit. At On The Money books we can help you calculate your corporation’s SBD for the fiscal year, and we can help you determine what the business limit would be for your corporation.
Business Mergers
If you have found the right business to partner with, we can help you with the bookkeeping aspects of a merger. Providing clearly kept accounts and clarity in bookkeeper accounts will certainly have a significantly positive effect when it comes to buying or selling a business.
Tax Audits
It can be stressful if your corporation has been audited by the CRA. At On The Money Books we can help if you are being audited or if you want to minimize any risk of being audited by the CRA. We will consult with you and help make sure your taxes comply with the newest regulations. The auditors will talk to us first, so we act as a barrier between you and the auditors so you do not have to deal with them directly. We will make sure to minimize any penalties you may receive and will work with the auditors to make sure your case is properly assessed.
If you would like to work with our professionals or would like to inquire about our services please contact us to book an appointment today.