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My CPA charges $250 a month and this includes the year end reports .She came to our home to set up quickbooks and taught us the right way to enter all the transactions.In canada gambling is tax free and legal , we report all income as affiliate commisions so we dont have to change GST to the canadian groups.
Oh man im paying about 40% in the US.. Federal Tax, State tax, Local Tax, Self employment tax.. then i work a day job and pay taxes there too including social security (work takes care of the max on that so i get a little relief)
I’ll say this about HR Block…. They hire individuals who are not qualified to do taxes during the ‘rush’ season. I know this because I know someone who worked for them during that time period.
I would get a CPA – it’s not that expensive and well worth it, IMO.
Sorry about the delay in getting back to you all. We are leaving for the vet in a few minutes. My wife’s favorite pet is going to have to be put down. So…things have been somewhat hectic as she is pretty broken up about it.
Quickbooks is great program for keeping your records straight. I am a certified Quickbooks Pro Advisor and use the program the program on a daily basis to prepare accounting records for my clients. I do quite a bit of consulting on it as well, going out to client’s offices, like later today.
As far as places like H&R Block go. I have a unique perspective having taken their training course years and years ago to gain continuing education credits. The course was paid for by my employer at the time as it was the cheapest price per credit earned!
What you need to know is that most of the people going thru that course do not have a financial background. They are english teachers, shoe salesman, truck drivers, etc. looking to make extra money during tax season. But, they are not all bad. Several of them showed real aptitude for preparing tax returns. However, you have to ask yourself if you want someone who does this part-time or someone who has made this their life?
For a lot of people H&R Block will be just fine, if your tax situation is fairly straight forward. Fair warning, being a CPA you know which way my answer will be biased towards.
‘BTW in canada the tax rate is only 18% on incorporated business ,11% if you have under $400,000 in revenue.’
That’s the tax rate if the money stays in the business, but if you cant pay yourself what is the point of all that money?
I resent the lowered rate under $400 000 in revenue that small businesses have as I think its a scam. What the government fails to tell you, is that if you qualify for that lower rate, once you withdrawal that money they charge you a higher dividend tax rate so that you end up paying the same as if you had earned sole proprietorship income. I did the math and a corporation only ends up saving about 20k on half a million if you pay yourself all the money. 20k might sound a lot, but its not when you factor the additional paperwork and accounting.
I have also never deducted a meal, car expenses, etc. If you try to deduct anything they will audit you. A while back I was audited for overture and google advertising expenses and they refused the expenses, I wont go into details but basically I had to pay tax on those expenses,and interest and penalties on those expenses, so now as part of business I cant spend money on advertising, on link buys, etc, because if I get audited again I am basically screwed. I know if I could buy links I would be a lot more successful at SEO, but I have had to work around that limitation. Sure you can take revenue canada to court but the expense and stress would not be worth it.
The revenue agency here is a scam and have god like powers.
I also don’t recommend anyone files taxes at H and R block. The savings are quite insignificant there and since people are doing it part time they can take much longer than normal to get things done, and you could potentially miss out on the filling deadline because of it.
Antoine without going into too much personal stuff , my agenda is make as much money as i can in next 5 years and then retire at age 45.My business pays the 18% tax rate and in 5 years I can draw a paycheck until i die lol which may be at age 46 lol.Also Incorporation is best when you have personal assets,keep in mind that my first 16 years in the work force was not online so I already had my house paid for ,pension plan etc from my work.
I have never paid google adwords but I have paypal expenses in 2006 and wrote them off without an audit ,paypal has excellent records an you get a receipt even for a $1.00 link.It also can be downloaded into the quickbooks.If you plan to write yourself a $400,000 a year paycheck then you may as well skip the incorporation and just eat the 40% personal tax rate.Guess it depends on personal life styles ,this year i paid $33000 income tax on $109,000 paycheck and probably will get hit about $10,000 when i do my filing in april.
