Corporate Directors Liability

If a corporation (including a for profit or non-profit corporation) fails to deduct, withhold, remit or pay amounts held in trust for the Receiver General for Canada (CPP, EI and GST/HST), the directors of the corporation at the time may be held personally liable along with the corporation to pay the amount due. This amount Read More

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By |July 4th, 2018|SmallBiz Builder|

Business Investment Loss – Denied

In a Tax Court of Canada case, a mother had guaranteed the business loans for her son’s corporation. Unfortunately, the corporation failed and subsequently the mother paid off the loans. The mother claimed business investment losses for the amounts repaid.
Her only motivation for the guarantee was to assist her son’s business. She did not charge Read More

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By |July 2nd, 2018|SmallBiz Builder|

Salaries Paid to Family Members

When deciding as to whether a salary should be paid to a family member, or more specifically to one’s spouse, numerous questions arise. On one side, there is the question of the risk involved that the salary may be unreasonable and having the expense being disallowed. On the other side, there is the benefit of Read More

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By |May 8th, 2018|SmallBiz Builder, Tax Tips|

Voluntary Disclosure Program

If you owe money to any of the tax authorities because you failed to file a return for one or more years, you can make a voluntary disclosure. You will pay only the tax due plus interest. No penalties will be assessed. You have to make a complete disclosure. The information can be less than Read More

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By |May 2nd, 2018|Tax Tips|

4 Risks When Starting a Small Business

Hundreds of new small businesses launch daily, with some going on to become big names such as Apple, Google, and Microsoft. However, most small businesses remain just that — an enterprise with a few employees. Only about half of all businesses with at least two employees survive after five years according to the Small Business Read More

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By |June 15th, 2017|Small Business Tips|

3 Ways to Stretch Your Small Business Budget

Any small business owner can increase their profit if they follow a certain set of guiding principles.  If you are like many business owners, you have tight budget.  Does it really need to be that tight?

The answer is no. There are ways around paying more to get less. Here are three ways that you can Read More

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By |April 12th, 2017|Small Business Tips, SmallBiz Builder|

What to Look for in a Business Credit Card

The decision to open a business credit card account is not a matter to take lightly. You should carefully weigh the pros and cons before making this decision for your business. The benefits associated with having access to capital when you need it, earning rewards points, and more often outweigh the cons associated with a Read More

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By |March 16th, 2017|Small Business Tips|

Owner – Managed Business – Creditor Proofing

Every business owner should be concerned about creditor proofing his assets. Here are several suggestions to consider:
1. Transfer assets out of the company:

Place capital assets in a separate holding corporation so that subsequent legal claims that arise in the operating company do not affect these assets.
Lease the assets in the holding corporation back Read More

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By |June 8th, 2016|SmallBiz Builder|

Online Advertising Income

If you have a website or a blog and you charge for advertising, links, or reviews, you must report the income on your Canadian income tax returns. Send invoices to your clients and customers. If your invoices exceed $30,000 in the last four consecutive calendar quarters, you must register for HST/GST. Once you are registered, Read More

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By |May 8th, 2016|SmallBiz Builder|

Implications of a High Gross Margin for your Business

A high gross margin is often viewed as the most important sign of a company in good financial health. Before you can earn net profit, you need to achieve a strong gross profit margin.
Calculating Gross Profit Margin
Gross profit margin is the portion of your company’s sales retained as profit after you account for costs of Read More

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By |March 30th, 2016|Small Business Tips, SmallBiz Builder|