One of the most common questions answered by the friendly, professional bookkeepers and accountants at Canwest Accounting comes from individuals with small businesses asking how to file their business taxes.
This depends greatly on whether the person is considered a sole proprietor of the business or if the business is incorporated.
If incorporated, then there are corporate tax forms business owners need to file with Canada Revenue Agency (CRA). The deadline to file corporate tax forms is three months after the company’s year end date, and payment is due six months after the year end date.
As a sole proprietor, the deadline for filing your personal tax return is June 15; you submit your personal income tax form plus some additional schedules reporting your business income and expenses. Keep in mind is that it’s better to complete your tax return before April 30 because if you owe tax, it is due at the end of April. Otherwise you will be charged interest on the amount owing. The deadline for GST is the same, unless the business is registered for quarterly GST payments.
“For those who are self-employed and whose company is not a corporation,
the business component is filed as part of their personal tax return,”said Sharlane Bailey, Owner of Canwest Accounting.
It’s a good idea for business owners to meet with an accountant to figure out whether they need to register for GST – once a business reaches $30,000 in sales during a calendar year, they need to start charging GST. It is also advisable to discuss with an accountant whether it makes sense tax-wise for a sole proprietorship to become incorporated. Canwest Accounting can also help you to come up with a schedule for paying your taxes in installments throughout the year, which is often required by CRA.
The team of accounting experts working at Canwest Accounting’s Victoria and West Shore (Langford) offices are available to answer your tax questions, regardless of the size or type of business you operate. Call or drop by to make an appointment.
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