I just incorporated my real estate business, what is next?
Now that you have incorporated, you as a director of the corporation are responsible for ensuring that the following requirements have been met:
- Filing a year-end corporate tax return (T2)
- Preparing year-end financial statements (Balance Sheet & Income Statement)
- Remitting source deductions to CRA (CPP, EI,Income Tax) for salary draws
- Filing T4/T5 information returns
Why do I need a set of financial statements prepared?
Every corporation filing a year-end tax return (T2) in Canada is required to produce a set of financial statements for the fiscal period that includes a Balance Sheet and Income Statement. Failure to do so can result in penalties, interest charges, and CRA tax assessments based on their estimate of your corporation’s income.
How can a CPA help my real estate business?
Now that your business can take advantage of the tax deferral benefits of incorporating, it is important to leverage the expertise of a CPA to help create a payout structure and tax plan that will minimize your annual tax expense, satisfy personal spending requirements, and help you build your desired financial future.