ASK THE EXPERT

Should I incorporate or should I be a sole proprietor?

The answer to this question depends on a number of variables such as:

• What are your long term goals?
• What liability issues are you facing?
• Will money be retained in the company?

Should I be registered for GST?

You must register once you have met the Annual Sales threshold of $30,000, whether you are incorporated or not. You may want to do this earlier in order to capture and capitalize on the GST paid out on your start up costs and ongoing business expenses. In addition, although less tangible in nature, having a GST number adds some credence to your business image and permanence.

Should I buy or lease (vehicle(s), shop or computer equipment)?

These are the things you need to take into consideration:

• Cash flow
• Tax impact
• Overall cost

The best route for you will be determined by how you answer the above.

Am I required to provide vacation pay to my part-time employee(s)?

Yes.

Am I required to pay my part-time employees for statutory holidays?

This depends on whether the employee(s) terms of employment stipulate the "elect to work" option. If so, then you are not required to compensate for statutory holidays. Otherwise, you are required to pay the employee for the 'stat' day, if they work their regular required hours (shift) before and after the holiday.

What is one of the main reasons why small businesses succeed or fail?

Orderly books and financial statements tell you where you are; allowing for effective planning, confident decision-making and ultimately business growth.

How could one possibly think that they could arrive at their destination successfully; without a balance sheet, income statement and cash flow analysis, just for starters.

Financial statements are your professional road map to accomplishing all that is important to you!

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• Would you like more information regarding the above?
• Do you have a question for Melody?
• Would you like to be advised of future courses in your community, regarding personal and business bookkeeping, couples financial consulting, and more?

Should you live in the York Region, Simcoe County or surrounding areas, please feel free to contact Melody by email at melody@accountablesolutions.ca