FAQ

Do I need a corporation? Save Money with lower tax rate.

01

Limited liability for owners

02

Lower Tax bracket means more money in your pocket

03

Easier transfer of ownership

04

Choose how much to pay yourself

Personal
Income Tax

1What documents do I have to provide?

1) SIN

2) Government ID (BC ID, Driver's License)

3) All of your T4s (if you don't have them, don't panic, we will be able to look it up online). T2202 (if you attended school last year). T5, T5008, Donation slips, Day care tax slips and any other slips you may have received

4) Phone number

5) Email

6) Do you have children?

This is a limited list and way may ask for other applicable documents such as work permit, study permit, marriage certificate.

2I have a small business, do I need a GST number?

GST is legally required to collect and remit if you surpass $30,000 of gross revenue a year.

However many companies, such as Uber and Amazon Flex may require you to have one to start driving for them

Talk to us about registration and linking to your CRA MyAccount

3What income do I need to report?

- Employment income (T4)

- Self-employment or business income. (Small beauty salon, Uber, DoorDash, Owner Operator truck drivers, drop shipping, web creators and many more

- Rental Income

- Investment income (interest, dividends, capital gains).

- Foreign Income

4What are common deductions I can claim?

- RRSP contributions

- FHSA Contributions (First Home Savings Account)

- Education/Tuition costs

- Childcare expenses

- Medical expenses

- Charitable donations

- Meals (if long haul trucking or staying away from home more than 12 hours at a time)

- Expenses if you're earning income as a sole-proprietor

5When are personal tax returns due?
- April 30 (June 15 for self-employed, but payment due by April 30).
6What happens if I do not file on time?

- Interest will accrue on unpaid taxes.

- Late-filing penalties: 5% of balance owing + 1% per month

- Potential loss of benefits or credits

7Should I hire an accountant to file my taxes?

- Ensures you claim all eligible deductions and credits.

- Handles complex situations (rental properties, investments, foreign income).

- Most importantly; helps with CRA correspondence if issues arise.

Business
Should I incorporate?

Incorporation
1What are the main advantages of incorporating?
- Protect against liability. For example; painting company accidently splashes paint on an original $500,000 painting. Only assets in the corporation are at risk, owners personal asset is risk free. - Potential tax deferral if profits are retained in the corporation. - Business can continue as normal even if ownership changes. - Cash flow shortage? No problem, sell some shares for quick cash flow solution. - Potential for many tax advantages and grants.
2How much is the incorporation cost?
Cost of incorporating is roughly $351.50. Name requests - $136 You may need business licenses to be legally compliant, may add additional costs.
3Who can set up my corporation?
Incorporating a business involves more than just filing paperwork; it’s about setting up your corporation correctly for tax efficiency, compliance, and ease of future operations. An experienced accountant (preferably a CPA) can guide you through these steps, ensure your corporate structure aligns with your goals, and link your accounts seamlessly with government systems like CRA and provincial registries. Choosing an accountant who is authorized to represent you with CRA can also save you significant time if issues or questions arise later.
4What documents will the accountant need to set up my corporation?
A piece of ID and your consent. Reach out to us for help with incorporation and any other government regulatory registrations.

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