80 Finch Ave West- Unit 200A, North York ON, M2N2H4
Incorporation is the legal process whereby a newly formed business entity is legally created in order to protect the owners of a business from legal liability. The incorporation process is governed by either the federal or provincial laws under which the corporation was established. Therefore, it is fundamental to employ someone familiar with the incorporation laws and regulations of your jurisdiction and the governing body that regulates your profession. There are a number of steps that one must take in order to incorporate their business; at M&R TaxPro, we make this process simple for you by walking you through this and providing guidance on requirements that you must be aware of to move forward.
There are several advantages to incorporating your business. Using your personal identity to get a business started can be common, but as time goes on and your business starts to grow, it is not a good long-term strategy. If your company should encounter legal problems or have liabilities such as those owed to creditors, you will be personally exposed to the debts that the business may have accrued. Incorporating can help shield your family’s personal assets from being exposed to such liabilities.
Once a company is incorporated, the business will become subject to lower corporate income tax rates. Corporations are typically subject to more favorable tax rates as compared with the individual tax rate. Lower tax rates result in more money being available to help grow the business. Furthermore, corporations often also allow for income splitting between family members which can also result in further tax savings in comparison to operating a business as a sole-proprietorship. Income splitting is done using family members such as spouses, parents and children; by utilizing family members in lower tax brackets, you may be able to bring down your family’s overall tax burden by income splitting using a corporation.
In certain cases, some professional bodies will allow their members to register their business through a corporation and establish what is known as a “Professional Corporation”. A professional corporation is similar to that of a regular corporation, except for the fact that it is restricted to only providing certain specific types of professional services, as outlined per the governing body that the profession in regulated by. Specifically, the following professions are allowed to establish a professional corporation:
Accountants;
Chiropractors;
Dentists;
Doctors;
Lawyers;
Pharmacists;
Real State agents (not officially, but very soon)
Etc.
While establishing a professional corporation may have many advantages, they can get rather complicated to setup and thus one should seek professional advice in doing so.
If you are looking to incorporate your business, contact us. We look forward to guiding you through this process and putting your business on the path to success.
Amortization Schedule Calculator
https://www.amortization-calc.com/
Buy vs. Lease Calculator (Canadian)
https://www.cchwebsites.com/content/calculators/CABuyvsLease.html
Tax calculators & rates
https://www.ey.com/en_ca/tax/tax-calculators
Work Safety Insurance Board Ontario (WSIB)
https://www.wsib.ca/en
Canada Revenue Agency (CRA)
https://www.canada.ca/en/revenue-agency.html
Make a payment to CRA
https://www.canada.ca/en/revenue-agency/services/make-a-payment-canada-revenue-agency/make-payment.html
The federal government says targeted aid is coming for some businesses hit by closures as a second wave of COVID-19 hits parts of the country.
Finance Minister Chrystia Freeland, flanked by the prime minister and other cabinet colleagues, announced a combination of new and previously announced measures in Ottawa today.
“The difficult reality is that the health measures we are taking to contain COVID-19 mean there are some businesses that simply cannot operate at full capacity, and some are closed down by public health orders. These measures are to support those businesses and to provide a bridge for all of us to the full containment of the virus,” she said.
TORONTO, ON –After more than ten years advocating for the right to incorporate, the Ontario Real Estate Association (OREA) is proud to announce that as of today, Ontario REALTORS® will be permitted to operate their business through a personal real estate corporation (PREC). For Realtors who will benefit from a PREC, it can significantly lower their tax burden – helping them reinvest in their business and save for the future.
You or your employer(s) must submit a record of employment (ROE) for each job you had in the 52 weeks before the beginning of your CERB. We need your ROEs as soon as possible to determine if you qualify for EI benefits and how much you’ll receive.
For more information about your EI claim, including the number of weeks and the weekly amount you’ll receive, register for My Service Canada Account (MSCA).
If you received the CERB through Service Canada
In most cases, you do not need to apply for EI benefits. After you receive your last CERB payment, continue completing reports. We’ll automatically review your file and your ROE, then start a claim for EI regular benefits if you qualify. If you don’t qualify, you’ll be notified by mail.
The Canada Recovery Benefit (CRB) gives income support to employed and self-employed individuals who are directly affected by COVID-19 and are not entitled to Employment Insurance (EI) benefits. The CRB is administered by the Canada Revenue Agency (CRA).
If you are eligible for the CRB, you can receive $1,000 ($900 after taxes withheld) for a 2-week period.
If your situation continues past 2 weeks, you will need to apply again. You may apply up to a total of 13 eligibility periods (26 weeks) between September 27, 2020 and September 25, 2021.
The Canada Emergency Response Benefit (CERB) ends when you’ve received 28 weeks of benefits or on October 3, 2020, whichever comes first. For those who applied through the Canada Revenue Agency, the last four-week period for the CERB was August 30, 2020 through September 26, 2020. However, you can still apply for the CERB retroactively through CRA.