GST is a tax charged on most goods and services purchased in British Columbia. GST is charged on the gross sale price of the item or service before PST. A Business also gets to claim as input tax credit (“ITC”), the GST it pays out in operating its business. For example, GST paid on rent, computers, business cards, accounting fees, etc. are all refunded back to the business when it calculates its net GST owing to CRA every reporting period.
Many small business owners are aware of the considerable tax benefits afforded to incorporated businesses in terms of very low corporate tax rates, but incorporating too early is a common tax planning blunder these days. Of course, there are many legal considerations to incorporating a business such as limiting liabilities. Even then, it is a legal debate whether incorporation will protect certain professionals from damages suffered due to professional negligence. This blog post is about the ... Read More