Knowing your personal situation before you decide on what to pay

Small Business Blueprint - How to Start & Run a Canadian Business

INTRODUCTION & ADMIN

Course Re-Launch - Monday, November 9, 2020
Introduction to the course and outline of topics we will be covering (6:32)
Outline of the course - Modules and topics that will be covered (6:21)
Course Adminstration - Requesting certificates, refunds and policy on questions. (5:43)
COURSE NOTES & PRESENTATION - Download the PDF of course notes and full PowerPoint Presentation

MODULE 1 - FORMS OF BUSINESS ORGANIZATION - OVERVIEW

Overview of the three forms of business organization (3:49)
Sole Proprietorships - Characteristics along with advantages and disadvantages (9:58)
Partnerships - Characteristics along with advantages and disadvantages (9:58)
Corporations - Characteristics along with advantages and disadvantages (9:00)
Why you should incorporate your business - sorting through the benefits of incorporation (8:30)
The importance of partnership agreements and what they should cover (7:54)
A look at shareholder agreements and why they are critical (10:44)
Overview of filing requirements for the three forms of organization (8:31)

MODULE 2 - STEP-BY-STEP PROCESS & BLUEPRINT ON STARTING YOUR BUSINESS

Summary of the eight step process and procedures on setting up a business (6:02)
Step 1 - Choosing and building your professional team (9:28)
Step 2 - Deciding on the form of organization your business will take (4:20)
Step 3 - Registering or incorporating your business (4:57)
Step 4 - Choosing a year end date for your business (9:07)
Step 5 - Looking into municipal tax issues - zoning licenses and permits (5:19)
Step 6 - Registering with the Canada Revenue Agency (5:09)
Step 7 - Registering with the Workers Compensation or Insurance Boar (4:12)
Step 8 - Opening a company bank account and bookkeeping options (7:23)

MODULE 3 - FACTORS TO CONSIDER WHEN INCORPORATING A BUSINESS

Corporate Structure - What is a corporation - A look at public companies (5:33)
How is a corporation managed and how is it answerable to shareholders? (4:54)
What are the duties and obligations of the shareholders? (4:49)
What are the duties and obligations of the directors? (4:45)
How does this structure come into play with small closely held businesses? (3:57)
The structure of the sole owner-managed business (3:03)
A look at different share structures and some discucsion on planning (10:09)
Using different corporations and setting up corporate groups (4:33)
Creditor proofing inherent in corporations and piercing the corporate veil (6:09)
Duties and responsibilities of owner managers and directors (5:55)
Should you incorporate your business? - Will you benefit from incorporation? (6:21)
Duties and responsibilities of the sole owner manager and shareholder (4:25)

MODULE 4 - BUSINESS REGISTRATION & INCORPORATION

The decision to go about registering or incorporating your own business (5:08)
Sole proprietorship and partnership registration - do it yourself (3:48)
When you need to register a business and when it is not necessary (5:46)
Registering your business name vs registering with the CRA (3:29)
Choosing a business name for your corporation (4:54)
What is a numbered company and when should it be used? (6:34)
What if the name I wanted for my business is already taken? (5:21)
Other aspects of numbered companies you should be aware of (5:54)
Federal vs Provincial incorporation - what is the difference (4:54)
The information you will need to register and incorporate a business (10:14)
The Certificate & Articles of Incorporation and other important corporate documents (5:49)
Ongoing annual maintenance requirements of a corporation (5:29)
Walk through of incorporating a business using an online service (14:05)
Walk through of registering a business trade name (Ontario example) (8:13)
How to find an online service provider to incorporate your business (3:00)
Overview of online services that I recommendation on the service I use (2:48)

MODULE 5 - REGISTERING WITH THE CANADA REVENUE AGENCY & PROVINCIAL GOVERNMENTS

Decision process for registering a proprietorship with CRA - GST/HST number registration (3:50)
When you need to register for the GST-HST as a proprietor or partner (4:09)
Should you register for the GST-HST even if you are not required (7:03)
When do I register? What if I don't know if I'm going to reach the $30,000 threshold? (3:32)
A look at the CRA business number and the different tax accounts (4:11)
When to use reference identifier suffix on the business number (4:19)
Advice on registering for a BN and maintenance of business number (3:50)
Applying for a business number and overview of the form (5:28)
The corporations tax account section of the form (3:17)
The GST/HST registration process and section of the RC1 form (7:38)
The payroll RP account of the form when you plan to hire employees or pay yourself (5:19)
Overview of the other program accounts and certifying the form (3:55)
WSIB or WCB (Wodkers Compensation) and registration for workplace insurance (7:03)
Provincial Sales Tax and registration in your Province of residence (4:05)

MODULE 6 - OWNER MANAGER COMPENSATION TOPICS

Introduction to owner manager compensation and what we'll be discussing (3:51)
Paying yourself as a proprietor - a very simple structure (6:23)
Paying yourself as a partner in a partnership - similar structure but more involved (5:45)
Keeping track of a partnership capital account for accurate and fair distributions (8:56)
Paying yourself when your business is incorporated (6:50)
General factors to consider and conversations to have with your advisors (6:45)
Knowing your personal situation before you decide on what to pay yourself from your corporation (5:41)
What is the difference between salaries and dividends? (6:40)
Important factors - What is your outlook on retirement? Are you disciplined? Will you rely on government? (5:53)
Decision tree - The most frequently asked questions about salaries or dividends and answers (8:50)
The logistics of paying yourself a salary in the corporate structure (8:30)
The logistics of paying yourself a dividend from the corporations profits (6:55)
End of year filing requirements for salaries and dividends (5:34)

MODULE 7 - TAX PLANNING STRATEGIES & PITFALLS

Overview of t his unit and what we'll be covering - the danger of using charts (4:04)
How much tax can I expect to pay if I'm a proprietor or partner (3:37)
Walk through of a personal tax return with net business income - proprietorships (5:10)
Walk through of a personal tax return with net business income - partnership (2:52)
How much tax do I pay when I'm incorporated? - How do personal and corporate taxes work together? (5:57)
A look at small business tax rates and the small business deduction (3:15)
How corporate tax and owner manager salaries work together (3:49)
How corporate tax and owner manager dividends work together (6:52)
How the Canada Pension Plan applies when you are self employed (8:11)
How the CPP works when you are paying a salary through a corporation (5:28)
Example of how the CPP is reported as a proprietor vs corporate salaries (6:39)
Can income be split with family members - A look at the do's and don’ts (8:24)
Tax on Split Income (TOSI) - A review of the exclusions and rules on the dangers of paying dividends (8:15)
Taking advantage of the dividend tax credit to pay a tax free dividend (10:06)
Other compensation benefits available to corporate owner-managers (5:49)
The dangers of benefits provided to shareholders in their capacity as shareholders - Section 15 of ITA (4:22)
What happens when a corporate shareholder tries to deduct personal expenses (4:52)
Borrowing money from the corporation and tax implications (4:06)
Benefits in the capacity of shareholder vs employee (9:13)
Using a TFSA as an alternative to the CPP pension plan (8:52)

MODULE 8 - DEDUCTIBLE EXPENSES, BOOKKEEPING & ACCOUNTING TOPICS

Intro to bookkeeping, accounting and frequently asked questions about deductions (4:28)
A good way to determine the deductible expenses by reviewing the T2125 Statement of Business Activities (6:26)
Deducting vehicle expenses when you are a proprietor or partner (11:49)
Overview of corporate owned vehicles and the two methods of vehicle ownership - corporate vs. personal (8:22)
Paying a monthly allowance for vehicles - pitfalls and appropriate accounting (4:30)
Home office expenses for the proprietor and partnership (9:09)
Can a corporation deduct home office expenses? (5:57)
Putting family members on payroll - best practices to avoid CRA audits and problems (5:29)
Travel and entertainment expenses - pitfalls and being diligent (6:26)
The necessary documents to make expenses deductible (8:37)
The 3 ways to pay expenses and a simple yet effective system (9:39)
A simple filing system for invoices and receipts (8:45)

Conclusion

Concluding remarks - Testimonials if you liked the course (1:11)

Knowing your personal situation before you decide on what to pay yourself from your corporation

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