What taxes do Partnerships pay?Destiny Planners Ltd2025-01-02T20:38:24-04:00
Partnerships Taxes Payable
- Green Fund Levy .3% on income earned.
- Profits are divided as per the partnership act or whatever agreement made by the said partners.
- Each partner is liable to pay:
- Income Tax of 25% on the profit earned in the partnership.
- And Health Surcharge which is $429 per year for 52 weeks and $437.25 per year for 53 weeks. (Only if your employee’s weekly income is more than $109).
- Likewise, Business Levy which is .6% on income earned for the year.
- They are paid every quarter on March 30th, June 30th, September 30th and December 31st.
- NOTE: If you work 8 to 4, you must combine the two incomes earned.
What taxes do Sole Traders pay?Destiny Planners Ltd2025-01-02T20:41:19-04:00
Sole Trader Taxes Payable
- Income Tax which is 25% on profit.
- And Health Surcharge which is $429 per year for 52 weeks and $437.25 per year for 53 weeks. (Only if your employee’s weekly income is more than $109).
- Likewise, Business Levy which is .6% on income earned for the year.
- They are paid every quarter on March 30th, June 30th, September 30th and December 31st.
- NOTE: If you work 8 to 4, you must combine the two incomes earned
What is the Profit First System?Destiny Planners Ltd2025-01-02T20:18:57-04:00
You are taking your PROFIT FIRST before TAXES, PAYING YOURSELF and then pay off all your other business expenses.
Therefore, you need to set up 4 bank accounts:
-
- Profit Account
- Tax Account
- Pay Yourself Account
- Chequing Account
How do I structure my business finances?Destiny Planners Ltd2025-01-02T20:10:08-04:00
You must learn about the Profit First system, which is as follows:
- Income – $0 to $250K
- Profit – 5%
- Pay Yourself – 50%
- Taxes – 15%
- Business Expenses – 30%
How do I structure my personal finances?Destiny Planners Ltd2025-01-02T20:11:42-04:00
You must follow the 80/20 rule which is:
- Investment (shares and stocks) – 20%
- Primary Expenses (groceries, loan payments, utilities, etc.) – 50%
- Secondary Expenses (party, weekend getaway, shopping sprees, etc.) – 30%
What taxes do Limited Liability Companies pay?Destiny Planners Ltd2025-01-02T20:45:42-04:00
Limited Liability Companies Taxes Payable
- Corporation Taxes which are 30% on profit.
- And Health Surcharge which is $429 per year for 52 weeks and $437.25 per year for 53 weeks for themselves and employees. (Only if your employee’s weekly income is more than $109).
- Likewise, Business Levy which is .6% on income earned for the year.
- Green Fund Levy .3% on income earned
- They are paid every quarter on March 30th, June 30th, September 30th and December 31st.
Why is it important to have Accounting Software for your business?Destiny Planners Ltd2025-01-02T19:57:01-04:00
- Save money because you reduce your accountant work load
- Accurate data and proper reporting
- More time to invest into other aspect of your business
- Good financial structure
What accounting software do you recommend?Destiny Planners Ltd2025-01-02T19:56:40-04:00
- WAVE ACCOUNTING is a FREE cloud based accounting software which is great for startup entrepreneurs who are still learning their market. It’s simple and easy to use. If you had it before 2020.
- ZOHO BOOKS is another FREE cloud based accounting. Bear in mind, the FREE option, you can only do up to 1,000 invoices.
- QUICKBOOKS ONLINE, let us mention, we are QuickBooks Pro-Advisor. Generally, QuickBooks has many features which we love coming from an accounting background.
- SIMPLE – basic package with 1 user and accountant;
- ESSENTIAL which has estimates, 3 users and an accountant.
- PLUS which has inventory, estimates, 5 users, accountant and many other lovely features.
