Business Taxation In Ontario

This volume discusses major taxes paid by business in Ontario, including corporate income and capital taxes, and payroll taxes paid by employers. The papers examine tax levels faced by firms in Ontario, assess these levels relative to other jurisdictions, and consider what impact they may have on business investment behaviour. The authors provide important insights into the taxes they examine. Equally important, they shed light on the constraints that a jurisdiction faces when it considers reforms to the system of business taxation.

This paper provides an analysis of the ways in which the interaction between federal and provincial taxes on businesses can create distortions in the levels and types of taxation and identifies ways in which these distortions can be minimized or even eliminated.

Published by University of Toronto Press in cooperation with the Ontario Fair Tax Commission.

Congratulations on picking up this book and taking time to educate yourself about one of the most liberating and rewarding steps you are about to take. My name is Benjamin Lashar. I am a Canadian who moved to the USA 25 years ago to pursue a successful corporate career. But the global economic crisis of 2008 forced my employer to lay me off. I took a nice severance offer and moved back to Canada with my wife and children to be close to our family. After a year relaxing and contemplating next steps, I started a business in Ontario that has grown successfully over the last few years. Since then I have registered more businesses as well as helped others in my family and friends circle do the same. I’ve learned a lot about the business registration process over the last several years, and I have written this book to help you understand the implications of registering a business in Ontario, as well as how to go about doing so. This book also serves as an efficient way to respond to some of the most common questions I received about the process. Rather than respond individually, it is my hope that this book reaches far more than whom I can reach personally and help everyone searching for this information. As an entrepreneur and successful multi business owner, I hope you will find this information helpful and actionable so that you too can take advantage of it immediately. I wish you all the best Ben Lashar Table of Contents Foreword Introduction to Doing Business in Ontario Selecting a Name for Your Business Researching the Potential Name of Your Business Filing for Your Business Name – What Do You Need? Where to File Your Business Name Obtaining Your Business License The Business Registration Process Registering Your Name & License Registering Your Sole Proprietorship Business Registering Your Business Online A Step by Step on How to Incorporate Why Incorporate in Canada? Examine the Reasons and Requirements Business Loss Deduction from Personal Wage Income (Tax Implications) Corporation Tax Advantages Corporate Ownership Structure Legal Entity Existence When You Incorporate in Canada Incentivized Employee Compensation Capability to Raise Funds Professional Assistance and Guidance Disclosure and Disclaimer

Starting a business or becoming self employed opens up a whole new world of tax considerations. This book will guide you through the fundamentals to ensure that you pay the taxes you need to but no more than that. In learning about the different types of tax and the sorts of deductions that businesses are entitled to you can have a better understanding of your small business tax and save time and money. Our tax companion: Makes sure you don’t miss any deductions by providing a comprehensive list of expenses that you as a small business or self employed owner claim, and explains them in detail with easy to follow examples Explains simply the key basic tax concepts that every taxpayer should know Provides details on how to do your accounting and what you need before preparing your tax return Takes you step by step through the process of completing the T2125 business tax return schedule along with examples Explores the more complex sections such as capital cost allowance, motor vehicle/car and home office expenses Takes you through the process of understanding and completing your GST/HST returns plus a special appendix on provincial sales taxes Discusses eligibility of common expenses that are less straightforward