There are various forms of business ownership. Sole proprietorship is the most common and the least formal. Partnerships are more formal than proprietorships. They include two or more partners, can come in various different forms depending on the needs of the partners and may require special tax filings (T5013). Corporations are the most formal and costly to maintain. For more information on business organizations find it HERE.
You may not have to pay Canada Pension Plan premiums after age 65 on your employment or business income if you already collect benefits. But you MUST elect to opt out of the plan. Employees/employers find the election formHERE.If you are self-employed you must ask your accountant to make the election on your personal income tax return.
In BC the combined Federal and Provincial Corporate tax for Canadian Controlled Private Corporations is 13.5% on taxable income up to $500,000. Corporate tax rates can be found HERE.
Do you want to know if you or your spouse or other dependent qualifies for the Disability Tax Credit. Call us today to find out what you need to do.
Do you want to know if you qualify for the Caregiver Amount. Take a short quizHERE.
Cash flow is often referred to the life blood of the business, that component that keeps your business afloat. Cash flow forecasting will able you to estimate peak cash inflows and outflows to reduce stress and better manage your business. Cash flow forecasts can also be used to motivate sales staff, set and monitor financial goals and more.
There are some simple strategies that you can follow. Some of these include billing your customer when the work has been completed, collecting from your customer when you present the invoice, or within 30 days, following up on uncollected amounts and managing your expenses. It is much easier to forget the 10 $20 purchases than one $200 purchase, but both equal the same $200 cash outflow from your bank account. Keeping accurate and timely bookkeeping records is the key to good financial and cash flow management.