An entrepreneur calls on us to help him carefully build his business from the ground up
In 2011, Mr. D made a bold leap, and went out on his own as an engineering consultant. He’d attracted two promising contracts, and wanted to try his hand as an entrepreneur.
He had multiple questions about what seemed like an overwhelming process. Meeting regularly, over the period of a month, we handled them all.
Sole proprietorship, or incorporate right off the bat?
If you have your own business, you know this question well. There are many differences between the two, but when it comes to taxes, sole proprietorships include all of your earnings in your year-end tax returns, whereas incorporating allows you to leave any excess earnings in your business, where they’ll be subject to a much lower tax rate (13.5%).
So when does it make sense to incorporate?
Based on Mr. D’s projected earnings, and the fact that we could set up share splitting with his wife and 20-year-old daughter, we advised him to incorporate.
What’s the best banking structure?
Jamie was going to be doing international business and wanted to be careful about setting up his banking accounts.
We connected him to a trusted advisor at and internationally renowned banking organization, and helped him explain his needs for his business.
How does GST work, and how do I get set up to file?
This is where we started to really step in. We set up a GST account with CRA directly, and helped Mr. D to understand how to collect and bill his clients GST.
What do I do about bookkeeping, payroll, and other administrative tasks?
After creating Mr. D's company's initial accounts structure (Chart of Accounts), we offered to either continue his bookkeeping ourselves, or train him and his wife on some easy-to-use accounting software to help them manage it themselves.
He opted to keep us on hand for the first year, so Mr. D could focus on what he does best – engineering.
Today, Mr. D’s wife has stepped back from working full time and is managing much more of the accounting and management of the business.
Mr. D is flourishing, and we remain on hand to support him with whatever he needs.
Our advice to incorporate from the beginning has also paid off – for the past two years Mr. D’s family has paid considerably less tax than in previous years.
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LEARN HOW YOU CAN KEEP MORE OF WHAT'S YOURS, CONTACT US TODAY!
"I've been a client of Louis Picco's for 7 years. I do business with Louis because he is a great mix of integrity, accessibility,professionalism and reliability. Over the course of our association, Louis has always personally made time for me for professional and personal money matters, taken the time to explain his strategy in managing my assets and provided invaluable insight. I trust him and confidently recommend him and his services."
"In my own business, Louis has been an invaluable resource. Not content to simply receive, review and prepare tax returns for CRA, he is a pro-active advisor who I rely on for tax planning. For example, a review of my personal and business goals resulted in recommendations on how I could re-sturcture my company to reduce taxes owing. I have come to expect that level of support form Louis. I cannot recommend Louis highly enough. He really does:help you keep what's yours."
"Sometimes it can be challenging to understand some of the more complex tax issues, but Louis is patient and always takes time to explain things in ways that are easy to understand. I have come to rely on him and his team.I'm happy when we are audited and our auditors are happy with his work."
"I usually do my own taxes, but this year I was not sure about the tax implications of some stocks I had bought. I fully expected to have to pay a lot of tax. I contacted Louis, gave him all the info, and was delighted when he called me back about a week later and gave me the good news! My taxes were all done, and I am getting a refund. I am telling all my friends how great he is!"
"Before we met Louis he got glowing reviews, and we were not disappointed when we met him. It was clear to us from the beginning that he is much more than an accountant. In addition to providing excellent tax advice he has provided us with valuable business advice and connections. We've been working with Louis for more than three years now, and what we like best is the quality of the work and his willingness to go above and beyond to help us succeed."
"The first time I met Louis he gave me an initial assessment on my personal tax situation, and I liked his approach. A year or so later I was happy to ask him to handle the files for five corporations. He's skilled at quickly identifying issues and suggesting solutions. I have worked with a number Louis' staff members, and they are all very good too. I'm happy to recommend Louis and his team, and I do so regularly."
"Over the past ten years I have built a strong business relationship with Louis Picco. Through good times and challenging times he has provided expert support and guidance. Louis and his team look after me with a personal touch. He's honest, interested in paying the right amount of tax, puts his clients first, and does a first class job."
"Louis looks after a number of my companies. He brings a specialized knowledge and considerable experience to the job. His staff is wonderful, and the service I get is always impressive."
"When we first started to work with Louis, he really took the time to get to know us and understand our business needs. Now, years later, I appreciate that he makes himself available to us whenever we need him and always has time to carefully explain complex issues. Last year when we were audited by CRA, he was extremely helpful. He took the time to plan with us before the audit, and support us through the entire process. It's a pleasure to work with Louis."
"Louis and his team are really good at what they do. Louis is professional, personable, and always ready to explain what he is doing and why. He's also accessible: he's one of the rare people who always calls back right away. We've grown to over 40 employees, and Louis has grown with us. We are very happy with his services, whenever I hear anyone mention they need a great accountant, I recommend Louis."