Quote:
Originally Posted by simmer2
Our lawyer recommended we not register for GST until you actually start doing some work. If she's going to be getting work immediately then you'll want to do that, but if not then you just end up doing a lot of paperwork for nothing.
|
There are two schools of thought on this. Most start ups incur their greatest expenses at the beginning. If you are not registered for GST, you will not be able to claim your ITC's, which could be sizable depending on your circumstances.
My 2 bits of advice.
Every incorporated business has shares, it can be as simple as 10 shares for $1.00 all owned by one individual. That is what allows you to draw dividends (rather than cash draws or salary) from the business. You will be taxed at a much lower rate on dividends.
Filing your annual (
incorporation) return is very straight forward; most people can do it themselves or a bookkeeper can handle as well. I would not recommend paying either a lawyer or accountant for that.
Filing your annual corporate
income tax return is best handled by an accountant. Start looking NOW, many are not taking new clients.
(
Shameless plug for my proffession) If you have a ton of transactions or have organizational challenges; consider a bookkeeper. If you leave it all till the end of the year and have the accountant do it...it
will be pricey. Bookkeeping rates are generally half of that of CGA's.... same applys here, start looking...many are not taking new clients.