Tax Tip Thursday

We are going to talk about Sole proprietors today.

If you are running a business, whether you registered or not, it is a sole proprietorship.

This necessitates that you include the income and expenses on your personal tax return on the Statement of Business Activities, schedule T2125.

One of the many questions people ask me about owning a business is whether they should register their business for HST.

Short answer is you do not have to until your revenues reach $30k in 4 consecutive quarters.

BUT, there are many circumstances, where it is financially beneficial to register from the beginning of your business. Specifically if you have a lot of expenses that attract HST.

AND the deadline for filing of your personal tax return and HST this year is Monday!

If you are not filed, do not put it off any longer. If you expect to owe money and have an estimate – make a payment to the CRA to save yourself some penalties and interest!

If you are going to own a business, in addition to having to file your taxes on time, you have many responsibilities as a business owner.

People tend to be good at something, perhaps working for someone else and decide that they want to earn their own way, so they start a business. It always looks easy, but there is a lot to it.

Here are some of the things you should give consideration to if you are starting a business and want it to be successful:

• Advertising, Marketing and Revenue Generation
• Technology and Cyber security
• Website and email
• Resourcing and Payroll
• Government compliance requirements
• Client Management
And of course…..
• Financial Management, Bookkeeping and Taxes!!!!!!

While I do not consider myself and expert on all of these fields, I can definitely provide you with insight from both running my own businesses and from working with businesses for over 40 years! I have seen a lot!

Where I can provide you with support is for your back office, bookkeeping, taxes and financial management.

We have a Small Business Basics Package that I offer to clients, where I can provide you with the basics that you will need to run a small business!

Come talk to us about bookkeeping, small business basics, and business taxes!  Make An Appointment today!

Disclaimer:

This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal or tax advice nor can it or should it be relied upon. All tax situations are specific to each individual. If you have specific tax questions you should book an appointment for a 1 on 1 consultation.