You need to make many important decisions before and at the time of starting a business. Should you incorporate? If not, should you have a partner, e.g. your spouse, or just stay as a proprietor? These decisions have serious tax and liability considerations. How would you draw your management compensation, as wages, dividends, bonuses or simply ad hock cash withdrawals? What are pros and cons of each method? How much should you draw as wages?
Many tax saving plans are best implemented at the time of starting a business, e.g. selecting a proper fiscal year end and ownership structure for the business. What family income splitting opportunities you may have? How should you do your business paperwork? Which expense is tax deductible and which is not? Can you deduct business expenses incurred before it starts? Can you save taxes if the business loses in the first few months or years? Can you save taxes if you are forced to wind-up the business?
Unless you have obtained answers to all such questions, you have started your business on weak foundation. H&T Business start-up experts in Mississauga and its team will help you put your business on strong foundation.