About Us
Bay Street Accounting and Tax Services is sole a proprietorship, operated by a Chartered Professional Accountant. The firm provides a range of services in accounting, taxation, finance and business consulting, including financial statement compilations, individual (T1) and corporate (T2) income tax returns.
How We Got Started
The firm intends to provide high quality, personalized professional services to individuals and small corporations at affordable rates.
The products and services we offer
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Products & Services
The firm provides services in the preparation and fling of individual (T1) and corporate (T2) income tax returns. The objective is to provide a sup...
The Canada Revenue Agency’s Voluntary Disclosure Program (VDP) provides taxpayers the potential to realize some dispensation from late filing penal...
A Business Plan is an important document for a new or growing business and it may potentially assist in obtaining financing.
Many business plan...
Recent Activity
Perform well for the clients you have and you will obtain a positive history.
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Perform well for the clients you have and you will obtain a positive history.
1 Reply
It depends on what the IT expenditure is for . It is for a capital item or an item of periodic expense ? The fact that it may relate to IT is purely secondary.
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It depends on what the IT expenditure is for . It is for a capital item or an item of periodic expense ? The fact that it may relate to IT is purely secondary.
A holding company is a company that does not produce goods or services itself, rather it exists to own shares of other companies. Holding companies can the reduce risk for their owners by inserting another corporate layer in between them and the operating companies and can allow the ownership and...
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A holding company is a company that does not produce goods or services itself, rather it exists to own shares of other companies. Holding companies can the reduce risk for their owners by inserting another corporate layer in between them and the operating companies and can allow the ownership and control of a number of different companies. A holding company does not really increase risk, but implementing one will increase the level of overall administration and reporting complexity. In certain situations, if enough ownership of the subsidiary is held by the parent company, it may be possible to have certain tax advantages in the movement of funds via inter-corporate dividends and other means.
In order to obtain a detailed understanding of the pros and cons of implementing a holding company structure, you may wish to consult a CPA.
The decision whether or not to incorporate should be based on a number of factors, including the type of business, its size (as measured by revenues, assets, profitability), the number and type of customers. Certain types of business may be more inclined to incur liability for the owners than...
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The decision whether or not to incorporate should be based on a number of factors, including the type of business, its size (as measured by revenues, assets, profitability), the number and type of customers. Certain types of business may be more inclined to incur liability for the owners than others.
Limited liability is perhaps the most frequently cited advantage of incorporation, however this advantage should be balanced with all of the related responsibilities and disadvantages. There are too many relevant aspects to review in detail in this response, however these comment may provide impetus for thought.
When a business is sued, it will need to have the resources to defend itself, whether it is incorporated or unincorporated. In addition, the directors of a corporation should keep in mind that they may still be personally liable in the event of non-payment of employee source deductions, WSIB premiums and HST. The Canada Revenue Agency (CRA) may issue a director's assessment to a director who chooses, for example, to use amounts earmarked on account of employee source deductions or goods and services tax ("GST") in a failed attempt to continue to run a business.
There are many examples of businesses that were encouraged to incorporate simply because the person doing the incorporation stood to earn a significant fee from the incorporation, however the director(s) and shareholder(s) basically had little idea what they were getting into. The individuals who are going to be standing behind the company should first inform themselves by studying the relevant legislation (in Canada this will generally either be the Canada Business Corporation Act, or one of provincial business corporations statutes). For the uninitiated, the company has to keep "books and records", which implies A) a minute book which should be keep up to date with pertinent resolutions and B) a reasonable chart of accounts, where financial transactions are recorded and kept up to date. The company has to present a proper set of financial statements to its shareholders for approval at the annual meeting and has to file a corporate tax return, within the prescribed time frames. A small corporation that does not keep a proper set of up-to-date accounting records will frequently be presenting its accountant with a "shoe box job" at year end. This may involve an entirely separate reconstructive bookkeeping engagement that will be time consuming and costly for the company, before financial statements can be finalized.
The tax advantages to incorporation include corporate tax rates that are lower than the higher marginal personal rates, the small business deduction, the flexibility in taking compensation in form of dividends versus salary. Corporations also have advantages in being able to obtain financing from 3rd parties by way of share issues. These foregoing advantages must be considered in relation to responsibility involved in maintaining a corporation.
Unless the principals are truly prepared for what they are getting into, it frequently make little sense to incorporate and they may be better advised to continue as sole proprietors or in a partnership. Incorporation should only be done after the principals have truly informed themselves.
In order to be properly informed about incorporation, it would be a good idea to meet with a qualified advisor, such as an experienced Chartered Professional Accountant, for a detailed consultation.
Save all pertinent documents for at least six years.
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Save all pertinent documents for at least six years.
