Managing tax reporting and incentive claims: Six hot tips for startups
When it comes to preparing your taxes and claiming incentives, Bryan Haralovich and Terry Lavineway from Welch LLP Chartered Accountants have some advice that every entrepreneur should know.
Planning ahead can go a long way when it comes to complying with Canada Revenue Agency and capitalizing on your own advancements for incentive programs. Of course, these tips are only general advice; you should always conduct your own research and consider engaging with a tax professional for details particular to your own situation.
For startups that meet the requirements of incentive programs such as the Scientific Research and Experimental Development Tax Incentive Program (SR&ED) and the Ontario Interactive Digital Media Tax Credit, among others, it’s critical to know whether your project activities qualify and meet specific criteria. Watch Bryan and Terry’s talk “Demystifying SRED and Other Tax Tips for Entrepreneurs” from the MaRS Best Practices series to learn more.
Here are three practical ideas to consider when preparing tax reporting for your startup. To hear all six of Bryan and Terry’s tips, watch the whole presentation below.
- Establish the right corporate structure. It’s important to establish your corporate structure early on, as it will determine the tax treatment of your business, of yourself, the entrepreneur, and of your investors. The decision will impact what rate your business gets taxed at, as well as your access to refundable tax credits.
- Identify key incentive programs. Identifying key incentive programs is also very important for entrepreneurs. However, don’t spend too much time looking at incentives that are not meaningful for your business and that won’t provide much value.
- Stay compliant with tax filings. Make sure to keep up with compliance matters and to deal with them on a timely basis.
- Slides: Demystifying SR&ED and Other Tax Tips for Entrepreneurs
- Article: Financial statements: The four components
- Article: When, how and where to incorporate
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