Thinking of Incorporating your Business ?
If you are thinking about Incorporating, give us a call, we are accountants in Oakville and Mississauga who specializes in incorporating small businesses like yours.
It is very common to be told or you may have heard from someone that for tax purposes you should incorporate your business. This is simply may not be true for each and every situation, in fact, in some cases, the opposite can be true.
As a rule, a corporation is considered to be a separate legal entity from yourself, and it offers the benefits of protecting yourself as an individual from any liabilities arising from the activities of your company. As a result of becoming a limited liability corporation, you are no longer personally responsible for business debts of the corporation.
However there are some exceptions to this rule, such as; if your corporation owes HST or payroll source deductions, or if you signed any personal guarantees on behalf of the corporation, you will still be liable personally for these debts.
Another advantage to incorporating your business is that the business pays a very low tax rate of only 15%, compared to a much higher personal tax rates. Call us today to further discuss tax advantages of Incorporating your business, we are tax accountants in Oakville and Mississauga who specializes in incorporating small businesses like yours.
Furthermore, incorporating can also allow for some privileges and advantages such as government grants, and other possible tax advantages. Small Canadian Controlled Private Corporations are subject to significant tax breaks. CCPC’s are taxed at half of the regular rate on the first $500K of active business income.
As a corporation, you are required to file separate Corporate Tax Returns (T2 Returns) to both the Federal and Provincial Governments each year.
Corporations bring along an additional level of complications, and as a result your accountant’s fees increases accordingly.
If you are considering the pros and cons of incorporating your business, give us a call at 416.454.8812 to discuss this in further depth.
As accountants in Mississauga and Oakville we are happy to offer a Free consultation
At OnTrack Accounting we offer a free consultation to all potential clients. Feel free to ask us questions that you have about incorporating your business.