Corporate Tax and Personal Tax Services in Abbotsford

by Mike on August 12, 2019

Corporate Tax and Personal Tax Services in Abbotsford

Lots of small entrepreneurs get headaches when it’s the season of filing taxes. Small businesses owners in Abbotsford may need to file to the Canada Revenue Agency or CRA on time so that they won’t be charged with tax evasion.

If it’s your first time filing for your corporation, you may need to get the help of companies that specializes in tax return services. Professionals and CPAs are experts in laws regarding taxes. They can be attorneys, enrolled agents, and CPAs. Ideally, you should get someone who is a CPA because they have passed licensures and they are updated on current codes and laws.

What’s Your Type of Business?

Sole Proprietorship

Single or Sole Proprietorship is a kind of business that is owned by one person. The owner needs to report his profit and loss as well as his income tax returns. The profits are levied at the current individual rate.

As the owner, you are responsible for making decisions about the business. You receive all the income, profits, losses, and you are responsible for the liabilities. You assume risks regarding the business as well. You can operate the business under your name.

Sole proprietors file a T1 income tax and benefit return. They report their profit and losses and file returns for refunds. The business is required to be registered to the goods and services tax/harmonized sales tax if you sell supplies.

Partnerships

A partnership is defined as a business association between two companies, partnerships or individuals who agree to carry the business. They are responsible for the contribution of money, skills, labor, property, and other investments into the business. The resulting profits will be divided among the partners involved. A partnership does not pay individual annual income taxes. Instead, the partners each declare profits and losses on a personal or business level. They have financial statements that they file either in writing or through electronic means. Some businesses in Canada with foreign partnerships should file T5013 or the Statement of Partnership Income when they meet certain criteria. These criteria include partnerships that have an absolute value of $2 million in expenses and $5 million listed as assets.   

C-Corporations

For private corporations in Canada, the rate is 10% as of 2018. Each year, each corporation has to file Form T2. This applies even to inactive corporations and the exceptions to the rule are the ones that are registered as charities. There is a requirement to complete the General Index of Financial Information that is more complex than Form T2. You may need to consult with an accountant for this. The filing should be done 6 months after the end of the fiscal year.

Why Get a Professional

When it’s time for filing, you may want to start looking for an advisor because pulling out records can be a hassle. You save a lot of time and money in the process. Accountants or attorneys will do the job for you and you can concentrate on running your business. You don’t have to pull out all the records of receipts, invoice, and other transactions and analyze them. You have someone that will help you with auditing and representing you to the authorities.

In some cases, you may want to use financial software to record all your transactions. A CPA will then do an in-depth analysis and will file for you based on the records provided. With complicated laws and forms, you will benefit a lot of not having to do it all by hiring a professional. They will prepare your income statements, profit and loss reports, and records of your assets. They can even provide you with guidance on how you can minimize your contribution. Note that this is minimizing legitimately and not evading.

Meet the minimum requirements and pay the right amount of contribution. Some attorneys specialize in preparing business statements as well as CPAs who are experts in codes and laws regarding the payment of taxes in your area. You can also get enrolled agents that have qualifications to represent you before the court in cases where you get audited. Contact the right professional today and save yourself the headache of filing taxes.

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