FAQs - Anne Chun Professional Corporation

1. Why do I need an accountant?

Some of the reasons include: maximize your deductions, minimize your tax, avoid an audit from the CRA, save time and energy so you can focus on your business/profession, and not just focus on today but make plans.

What you DON’T know may be costly.

2. Should I incorporate?

Incorporating can be very beneficial to Self-employed professionals as this will save taxes, limit liabilities and provide other planning opportunities. But this may not be the right choice for everyone.

If you are thinking of incorporating your business, please contact us for a complimentary 30-minute consultation. At Anne Chun Professional Corporation, we have provided business and tax guidance to many business owners and professionals in the last 20 plus years. Let us help you reach the right decision for you and your family.

3. What is involved in running a corporation?

A corporation is a separate legal entity and will need to file a corporate income tax return each year.

In many respects, running a corporation is like running a business that is not incorporated.

However, there are more planning opportunities for income tax and estate planning.

Since the planning can be different for each business owner/professional, it is best to work with an experienced accountant.

4. If I incorporate, how can I pay myself?

In general, there are two ways to remunerate yourself.

There are different tax implications for each option and pros and cons.

To determine the best mix and amount, it’s best to incorporate your family budget requirements, other income and financial goals such as debt repayment, home purchase, debt reduction and/or retirement planning. This is part of the comprehensive services we offer to clients. We would be happy to prepare a tailor-made plan for you and your family.

5. Can I pay my family members to reduce income taxes?

The short answer is “yes” but the CRA has set out new rules and guidelines that we need to (take into consideration. This is part of the remuneration planning we provide to clients.

6. I am running a successful company and revenue is growing, how can you help?

Congratulations!

It’s time to have a “financial coach” on your team. We work with professionals and business owners in this capacity and are available year-round to help you with financial strategies.

For example, you are encouraged to have monthly “financial statements” done as these are the “report cards” of your business. Knowing how to read the report cards will help you focus on areas to improve and give you invaluable feedback. If you are too busy to update your “books” or accounting data, we can help you. Other areas include Financing, minimizing income tax, financial planning, payroll and learning how to interpret the “report cards”.

7. My friends told me I should create an operating and holding company.

There are many uses and advantages to have this setup.

However, depending on your circumstances, it may not be allowed or the best option.

There are many complex technical issues to consider and it would be difficult to discuss specifics without having more information.

At Anne Chun Professional Corporation, we have provided business and tax guidance to many business owners and professionals in the last 20 plus years. Let us help you reach the right decision for you and your family.

8. Do I need to set up a HST account?

The answer will depend on the type of services you offer or products you sell.

There are also other variables that are applicable.

We can help you understand the requirements and assist with the setup and ongoing reporting for HST.