Once your business earns $30,000
in revenues, you need to register
for a Business Number (BN)
and start collecting HST.
Purchases made to start up the company and for daily operations qualify as expenses of your business.
There are restrictions on the type of expenses you can claim, and how much you can claim each year.
Track your receipts in a spreadsheet,
or check out QuickBooks Online,
and consult with a
to help make sure
your business is complying
with all CRA regulations.
Big-ticket items such as computer hardware and furniture are expensed over time, not all in the year purchased.
The various classes of assets are depreciated at specific rates.
The rules are complex so we recommend you ask a professional bookkeeper or accountant for guidance.
Yes, if you meet the CRA conditions.
A couple of things to remember:
we recommend you do not expense
mortgage principle, because capital gain and recapture rules will apply
on sale of the property;
also, be aware that you may not use
home expenses to create
or increase a business loss.
HST To start, most small companies file HST once a year, typically 3 months after the end of the year. If your net HST owing is more than $3000 in a fiscal year, you'll be required to pay quarterly instalments.
Unincorporated companies (Sole Proprietors and Partnerships) file their business details with their annual personal tax returns.