Incorporating your business offers several tax benefits, including access to dividends, income splitting, and asset protection. Incorporating can help you limit personal liability and save on taxes. It allows you to optimize profit distribution and enjoy potential tax deferrals. However, the decision depends on your specific situation, so it’s important to assess if incorporation aligns with your financial goals. Learn more about incorporation.

Yes, income splitting is possible with your spouse, but the amount paid must be reasonable. Essentially, you should ask yourself: "Would I pay someone else the same amount for the same job?" If the answer is yes, the salary passes the reasonableness test. Income splitting can be an effective strategy to lower your overall tax liability. Speak to your accountant to optimize this for your situation.

Yes, paying dividends to family members can be a valuable tax strategy if done correctly. Family members who are shareholders and contribute to the business can receive dividends, helping you distribute income effectively. However, be aware of the Tax on Split Income (TOSI) rules, which state that family members must work at least 20 hours per week in the business to qualify for dividend payments without penalties.

The Scientific Research and Experimental Development (SR&ED) tax credit program is one of Canada’s largest tax incentive programs. It allows businesses conducting research and development to claim tax credits for eligible expenses, including salaries, materials, and overhead costs. If your business is involved in technological or scientific advancements, you might be eligible for SR&ED credits. Book a free 20-minute consultation with our SR&ED experts to assess your eligibility.

Yes, you can handle your own bookkeeping. However, we recommend that you provide us with your Trial Balance, Profit & Loss, and Balance Sheet reports. We will then compile the T2 GIFI statements required for incorporated businesses, or the T2125 form if you’re filing as a sole proprietor. Doing your own bookkeeping can be time-consuming, so consider consulting an expert to ensure everything is in compliance with CRA standards.

Yes, we offer comprehensive packages that include tax filing for shareholders and their spouses. Combining tax filings can lead to better tax planning and coordination of benefits, especially when it comes to income splitting and other tax-saving opportunities.

The Quick Method for HST is available for businesses with under $400,000 in annual revenue. Instead of remitting 13% HST, businesses can elect to pay a flat 8.8% on HST collected, simplifying the tax process. This method is particularly advantageous if your business has minimal expenses, such as in IT or consulting services. However, the decision should be based on a careful calculation of your expenses. Consult your accountant for more details.

Yes, if your home office is used to meet clients or conduct business, you can claim a portion of your household expenses, such as utilities, mortgage interest, or rent. The deduction is based on the percentage of your home’s square footage used for the office. For example, if your office makes up 10% of your home, you can claim 10% of your related expenses.

Yes, if you plan to claim automobile expenses for tax deductions, you must keep a detailed logbook of your business mileage. In the event of a CRA audit, failure to provide this log could lead to disallowed expenses. It's best to track your mileage throughout the year to ensure accurate reporting.

We provide year-round support for our clients. General questions can be handled by email or phone without any extra charge. For more complex tax or financial calculations, we offer billing options based on the time required to resolve your queries.