This is an excerpt from a paper written for York University Faculty of Law. Dividends from a subsidiary corporation to its parent corporation are often though to be tax-free – however this is not a safe assumption. The simple movement…
One intent behind the preparation of a will should be to ease the administration of your estate. Your solicitor should have a clear understanding of your obligations because in addition to creditors for debts of the deceased and the estate,…
The formalities of creating a valid trust and a valid will should not be underestimated. Oftentimes the statute of frauds or wills legislation applies where the formalities are not met. Courts of Equity generally look to a person’s intentions rather…
There are many advantages and disadvantages of incorporating a business owned and operated by a sole proprietor – however a corporation may provide that added layer of protection and tax planning that a successfully run business would be ready for…
Accountants appreciate the importance of good record keeping. After all, accounting is the recording of transactions in a generally accepted presentation based on those records. Well maintained records are the foundation of a well organized entity. And at the centre…
While a sole proprietor is the simplest form of a business structure, there are considerations when selling such a business to minimize tax. As the sale of a sole proprietorship is a taxable event, it would be advantageous to include…
The organizational vehicle of the business you purchase will have tax implications. If you buy a sole proprietorship you normally acquire its assets. This includes its inventory, equipment, leases, customer lists and so on. The purchase price allocated to each…
As a business operating as a sole proprietor finds success – the benefits of a sole proprietorship may be outlived and a conversion to a corporation should be considered. However, the tax impact of this transfer must be planned for…
Sole proprietors do have planning opportunities to minimize their taxes. This includes using start-up losses against other personal income as well as considerations of timing of acquiring business assets and income spitting opportunities. Tax planning is an ongoing process that…
The type of business structure you choose has a significant effect on the way you report your income. From a legal standpoint, a sole proprietor is indistinguishable from its owner. It is an unincorporated business owned by one person and…