A lot of young people throughout the Toronto area and even the country itself have dreams of one day owning their own business. There are many things that can hold them back ranging from finances to not enough experience, and in some cases even the Canada tax regulations.
Before letting the business tax implications in Canada hold you back from making your decision to follow your business dreams, first gain an understanding of what the system is really all about.
Those that gain a basic understanding of business tax, and then utilize the resources that are available to help with this most often fare well with their business endeavors.
The first thing that must be realized is in order not to start off early with business tax problems is to ensure that you keep good detailed records. The CRA has a mandate that every business must follow for record keeping. That doesn’t mean you have to be an accountant to accomplish this. Your records have to be honest and accurate to back up the financial statements that your small business accountant will have to prepare for you on a yearly basis.
This is not the only time that you will want to take advantage of what your accountant has to offer. This is an expert that can guide you with different aspects of your business. Your financial records are a critical source of information, and can help you make many different business decisions.
You will have decisions to make as to whether to start out with should you keep your business as a sole proprietor or should you incorporate it. Each of these situations has their own tax regulations attached to them. There will be many factors that have to be considered to help you make the right decision concerning this.
The next thing you must educate yourself about is tax matters like payroll, GST/HST and perhaps import/export if your business is going to be involved in this.
While there are tax implications for any Canadian business, by carefully planning your business moves and strategies you can keep your business taxes in control, and even take some advantages of some of the potential business tax incentives.
By following this bit of advice, you will soon discover that the tax implications that a new business may face should not deter you from following your business dream.
