There is no legal requirement that an attorney incorporate your business. You can prepare and file the complex government forms yourself; however, you should be well versed in the requirements of incorporation. Alternatively, you can choose to use Marceca Accounting Services to save money and time.
A corporation is an artificial person or entity that has its own existence or identity that is separate and distinct from its shareholders. A corporation may acquire real property and enter into contracts. It is also responsible for its own acts, liabilities and obligations.
Incorporating has a lot of potential advantages, but it may not be the best strategy for everyone. Generally the advantages for incorporating a business are the potential for limited liability, tax savings or deferral, succession planning, income splitting, and the capital gains exemption on the sale of qualifying small business corporation shares. On the other hand, incorporated businesses must comply with more government regulations, so they are more expensive to maintain. There are many factors to consider, including your current income needs and your long term plans and goals. Generally it is best to sit down with a Professional Accountant and strategize the best plan based on your current information, as everybody’s situation is a little different.
Any cost – including automobile operating costs – incurred by your business for the purpose of earning income may be deducted from the business income, subject to certain limitations by the Canadian Income Tax Act. Operating costs may include gas and oil, insurance, parking, repairs and maintenance, leasing costs, and loan interest. Limitations exist, however, so it’s best to consult a Professional Accountant for advice. The actual cost of purchasing a vehicle is not a direct expense, but annual capital cost allowance (amortization) may be claimed as the value of the asset diminishes over time.
Yes, a Business may deduct meals and entertainment costs as long as these represent costs incurred for the purpose of earning business income. The CRA requires that the receipts have documented information such as whom you met with, why you met with them, and the information you discussed at the meeting.
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