ARBUS200 Lecture Notes - Lecture 6: Canada Revenue Agency, Sole Proprietorship, Virtuous Circle And Vicious Circle
22 Nov 2018
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Pay applicable federal and provincial taxes quarterly on net income; Deductions for canada/qu bec pension plan (c. p. p. /q. p. p. ) and. If in regulated profession, e. g. real estate, land surveying, food production, proof of accreditation and compliance provided. Advantages: easy and inexpensive, owner maintains control and retains all profits, losses can be deducted against other income, not subject to double-taxation, easy to dissolve. Advantages: easy and inexpensive compared to registering as a corporation or l. l. c, more than one skill set, more than one owner easier to raise funds, losses can be deducted from other income, Disadvantages: unlimited liability on each, reliant on small number, shared decision-making can lead to disagreements, Business ends when one partner leaves or dies, raising large capital difficult, liquidity of investment is low: corporation - separate legal entity from its owners (shareholders) Advantages: shareholders liable only up to amount of investment, no restriction on number of shareholders, stock is liquid if openly traded, raising capital easy, stock option incentive.
