As a self-employed individual, your net business or professional income is reported on your personal tax return. It is therefore important to understand what you information you need to track in order to complete your return and minimize your taxes. You will also need to consider other taxes such as HST and payroll taxes if you have employees. I can assist with getting you set up and have developed easy to use worksheets to capture the information you need.
I provide corporate income tax preparation for service based corporations such as consulting businesses, training businesses, and landscaping businesses. A corporation is a separate legal entity so it is important to set up the business properly and understand all the filing requirements.
I assist businesses with GST/HST return preparation, how to track the GST/HST you owe, and electing for the Quick Method of Accounting. Many businesses such as consulting business benefit from using the Quick Method which results in the business being able to keep some of the HST collected.
When do you have to register for GST/HST? Generally, if the business revenue exceeds $30,000 in one calendar quarter or if your revenue exceeds $30,000 in four consecutive calendar quarters you must register for HST. For more information, go to CRA’s website, www.cra.gc.ca, and search “HST for businesses”.
Do you have employees or self-employed contractors? For employees, making timely remittances is crucial. I can assist with helping you understand payroll calculations and assist with the preparation and filing the T4 tax sIips. If you have self-employed contractors, make sure you understand the difference between an employee and a contractor. If Canada Revenue Agency determines your contractors are actually employees this will result in a large cost to the business for CPP and EI remittances.