If you don’t go down the route of going into the business world by yourself, its possible to go down the partnership route. When you start a business with a friend, colleague, family member, or just another person, then you are starting a partnership business. Normally when people get into these partnerships a lot of planning goes into the business and agreements are made from both parties about the business, about the money coming in, as well as the money going out.
Partnership tax returns have their own unique set of challenges. How much income is to be reported on your tax return, and how much on your partner’s? What if you have more than one partner? Should you include gross income, or should you include net profit and what happens if you are HST registered?
Partnership tax return complicate issues a little further as to what exactly needs to be reported? How is your income reported? Should it include HST or exclude HST? You might be using your personal car for the business, but since that car is not legally bound to the business is it okay to claim expenses on that car? Should you claim, all of the automobile expenses, or should you claim a percentage, what is the allowed percentage for automotive expenses?
You could possibly have equipment which would fall in the same situation. Can you take advantage of your personal assets, and reduce your income tax by claiming those expenses?
There are a lot of other issues that come up in the partnership. But we’re here to take care of that. We’ll figure out all the little questions and sort out all the big issues for you. We have the experience, the know-how, and the knowledge to take care of your specific situation.