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5 KEY THINGS EVERY NEW CANADIAN SMALL BUSINESS OWNER SHOULD KNOW ABOUT ACCOUNTING & TAX
Tax laws and regulations plus a great bookkeeping system go hand in hand with your Business Number.
Every business owner must register for a business number with CRA. If you incorporated, the business number would be included on the cover sheet for your Notice of Articles (for those registered in BC). The first nine digits of this number is unique to your business and will be used for your corporate taxes, GST, and payroll accounts too. The difference between these accounts will be the two letters that appear after the first nine digits. (RC = corporate tax; RT = GST; RP = payroll)
Once you get this number, you will need to activate it with the CRA for both GST and payroll, for when those are going to be in use. In BC, you might also have PST (required when revenue is over $10,000, when applicable) and the Employer Health Tax (EHT; exempt for business with less than $1.0M in employee remuneration) which will be different registration numbers as they are provincially managed through the Ministry of BC and are separate from your CRA federal tax accounts.
If you did not incorporate, you may still have to register however many sole proprietors never do this until they must register for GST.
Two hot topics to come…
***This blog is for information only and not to be used as tax advice or planning without first seeking professional advice. Information is subject to change without notice.