Corporate Tax for Small Business Owners
No matter what the size of your business it demands the best in accounting practices. If you are not business orientated when it comes to small business taxes it can be quite difficult to keep your bookkeeping and financial matters in order. The best way to get on top of your business tax matters as a Toronto small business owner is to utilize the services of a Toronto small business accountant right from the start.
Your NLCA Associate can tell you the best way to set up your regular bookkeeping methods. It may be something you can do yourself by using bookkeeping software. Or if you prefer not to then you can hire a bookkeeper. Your NLCA Associate may be able to assist you in these accounting services as well.
Staying on track with the Canadian taxes starts by keeping good records. Then this also gives the accounting for small business company that you are using the best opportunity to complete your business tax returns in an efficient manner. Proper accounting practices insure that you don’t miss anything both in and against your favor when it comes to taxes.
There is lots to learn when it comes to business taxes and just to give you some insight, the following is some of the tax information that you need to be aware of as a Toronto business owner.
What Small Businesses Need to Know
Small Business – Ontario
Tax Rate in Ontario on Active Business Income
In Toronto, Ontario, the general rate of tax for a Canadian Controlled Private Corporation (CCPC) what I like to refer as a “Small Business” in Ontario after taking into account a Federal Tax Abatement of 10% and Small Business Deduction of 17% is 11% Federally and 4.5% Provincial tax for Ontario bring the total tax on Active Business Income in Ontario to 15.5% which applies to Active Business Income up to $500,000.
Tax Rate in Ontario on Investment Income
When income is from investment or property it is not considered active income and is not subject to a Small Business Deduction and the Federal rate effective January 1, 2012 is 34.7% Federally and 11.5% Provincially for Ontario bringing the total effective combined tax rate to 46.2%. However part of these taxes are refundable when taxable dividends are paid out to shareholders.
These are just two of many important small business tax matters that you need to be aware of. These are amongst the many tax concerns that your NLCA Associate would address for your corporation. In addition an NLCA associate will offer the following services.
Services which we Provide for Corporations
- Preparation of Year End Corporate Financial Statements
- Preparation and Filing of Corporate Tax Returns – T2 Return with Canada Revenue Agency
- Tax Planning
- Issuance of T4 & T5 Slips
- Filing of GST/HST returns
- Filing of T1135 Form for Foreign Income Verification Statement
- Selection of Accounting Software
- Voluntary Disclosure
There are different levels at which you can take advantage of the services a NLCA business accountant offers.
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