Incorporating & Accountants

[ricosuave]

some great info here, thanks all

[Sugarphreak]

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[CompletelyNumb]

Originally posted by ExtraSlow
Not planning to release the name until this business is up and running, please don't ask.

I don't care about the name, I am curious the sector though. Aren't you an O&G lifer? Just curious because i know about a dozen O&G guys (myself included) all starting new businesses completely unrelated to our industries. Kinda funny how we're all scrambling.

[ExtraSlow]

Mine is still O&G related.

[suntan]

Dividend markup rates are much higher now. It's basically six of one, half dozen of the other now.

All the loopholes with young children are gone, so now your kids have to be much older before you can do anything with that.

Small business tax deduction is still there but really it's not THAT much saved.

They also have no leniency on paying GST, payroll and income tax anymore. They used to give you some grace but if you're short they will fee you tons.

[suntan]

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[Sugarphreak]

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[suntan]

Yeah that one's nice to have. Not sure I'd call that a loophole though.

[UndrgroundRider]

Originally posted by Sugarphreak
^^There is a lot of little things you can do. Such as simple GST

I charge 5% on top of my invoices.. but I only remit ~3.6%. Thus I make 1.4% more money over my standard charge out rate

Explain.

[Sugarphreak]

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[UndrgroundRider]

Originally posted by Sugarphreak


Instead of working everything out, you can just remit a percentage of what you collect

http://www.cra-arc.gc.ca/E/pub/gp/rc...058-03-13e.pdf

Right, but certainly you have other ITC's that amount to that 1.4%. (Otherwise you're probably doing a bad job of claiming all of your deductions in the first place.)

[msommers]

Yeah I think if you make below $30K/yr you don't have to charge GST but honestly I don't know you wouldn't for that very reason.

Good info about incorporating though. For what I was doing before, LTD did make more sense because if someone for whatever reason wanted to come after me, my house would be jeopardy.

For my photography stuff, being LTD I feel like is overkill and I don't make enough now to justify it.

[Sugarphreak]

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[msommers]

Agreed. For lots of purchasing, I think all the GST that you buy in business expenses is deducted off the GST you charges (and technically own back). I think anyways...accountant handle everything lol.

[nzwasp]

So how does the gst play into it when you get a rate from a recruiter for a contract. Like in my situation. I would get $60 an hour is it automatically charged at $60 + gst?

[Sugarphreak]

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[suntan]

Originally posted by msommers
Agreed. For lots of purchasing, I think all the GST that you buy in business expenses is deducted off the GST you charges (and technically own back). I think anyways...accountant handle everything lol.

Yes, that's the whole point of a value added tax. Only the consumer pays in the end.

[Brent.ff]

Originally posted by msommers
Yeah I think if you make below $30K/yr you don't have to charge GST but honestly I don't know you wouldn't for that very reason.

Here's a quick question. I had a very brief time being a SP, and collected GST, following being laid off.

I was then offered permanent at the same place, and took it. So I don't think I hit the 30k mark of revenue..do I still need to do a GST return, if I didn't get to 30k on it, regardless that I charged GST to them?

[nzwasp]

Can anyone suggest any small business accountants for me? I recently incorporated and need one?

[DJ_NAV]

Feel free to PM me. I am a CPA, CA myself and work primarily with small businesses.