What are the personal tax deadlines?

The filing filing dates for the 2022 tax year are as follows:

March 1, 2023: Deadline to contribute to RRSP, a PRPP, or an SPP
May 1, 2023: Deadline to file your taxes
June 15, 2023: Deadline to file your taxes if you or your spouse or common-law partner are self-employed

The payment due date for the 2022 tax year is:

May 1, 2023: Deadline to pay your taxes

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What are the corporate income tax deadlines?

File your return no later than six months after the end of each tax year. The tax year of a corporation is its fiscal period.

When the corporation's tax year ends on the last day of a month, file the return by the last day of the sixth month after the end of the tax year.

When the last day of the tax year is not the last day of a month, file the return by the same day of the sixth month after the end of the tax year.

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What are the corporate GST/HST deadlines?

The total amount of your annual revenue will determine when you have to report and remit GST and HST.

If your revenues are $1,500,000 or less, you are only required to report annually. If you have an annual reporting period, you usually have to file your return and remit any amount owing no later than three months after the end of your fiscal year.

If your revenues are between $1,500,000 and $6,000,000 you are required to report quarterly. If you have a quarterly reporting period, you have to file your GST/HST return and remit any amount owing no later than one month after the end of your reporting period.

If your revenues are more than $6,000,000 you are required to report monthly. If you have a monthly reporting period, you also have to file your GST/HST return and remit any amount owing no later than one month after the end of your reporting period.

What business structure is right for you?

Corporation

A corporation is the most common structure for businesses of any size. It's a separate legal entity from its owners, so they're not responsible for the company's debts. This also means the owners, or shareholders, can sell their shares without impacting the business' operations. To enjoy this protection, corporations typically have more regulations and taxes.

Partnership

A partnership is similar to a sole proprietorship, but it involves two people instead of just one. Both partners share control of the business and are responsible for its debts and liabilities. For a partnership to be effective, it's important to have an agreement that outlines each partner's roles and the division of profits to avoid conflict. The main benefits of a partnership are that you have a reduced risk from debts and liabilities and you can share resources and expertise. The drawbacks are that it can be difficult to find a partner you're compatible with and there's a potential for conflict, even with a partnership agreement.

Limited Liability Corporation

A limited liability corporation is a formal business structure that combines elements from a corporation and sole proprietorship. The owners, also known as members, have protection from the company's debts and liabilities but enjoy all the benefits of a corporation, such as tax breaks that sole proprietors don't receive. An individual, partners, or a group can start a limited liability corporation. The main benefits of this structure are the protection from a company's debts and liabilities and the tax efficiency. The drawbacks are the costs and stricter regulations limited liability corporations face compared with other structures.

Sole proprietorship

Sole proprietorships are the most common option among small business owners as it involves a single person owning and operating the company. This means the sole proprietor has complete control over their business, but it also means they're liable for any debts or lawsuits against the business. Another drawback of this business structure is that it can be difficult to raise money as a sole proprietor, as you can't sell business shares.

There are plenty of benefits as well. Sole proprietorships are easy to set up and they're more inexpensive to operate as you won't be responsible for corporate taxes or the costs associated with maintaining a separate legal entity.

Looking to start a business and confused about which business type is right for you? Contact us for a free consultation.