The Incorporated Canadian

Most business expenses are deductible, but the rules around home office, car, and professional fees each work a little differently. In this episode, I walk through the expenses every business owner should know, including the one expense you generally can't claim. What we cover: Home office expenses and how to calculate your business-use percentage Vehicle and mileage log requirements, plus the per-kilometer rate option for incorporated owners Subscriptions, software, and professional dues Phone and internet expense allocation Training courses and conferences, and the direct-expense vs. capital-cost distinction Professional fees: accounting, legal, translation, registration The one expense you generally can't claim Want to go deeper? My masterclass, The Small Business Guide to Maximizing Tax Deductions , covers this in more depth: https://learn.montrealfinancial.ca/the-small-business-guide-to-maximizing-tax-deductions-masterclass I also have a collection of posts on deductible expenses on the blog: https://www.montrealfinancial.ca/deductible-expenses Free resources for incorporated Canadians: montrealfinancial.ca/corporations Sign up for the newsletter: montrealfinancial.ca/newsletter

GST/HST for Canadian corporations: when you need to register, how the ITC calculation actually works, and how to file your return, plus some guidance on what to do if you're a Quebec corporation. If you're incorporated and generating revenue, this is one of the tax obligations that is essential to understand. This episode walks through it from registration to filing. What we cover: The common myth that incorporating automatically means you have to register The $30,000 threshold, and why registering earlier sometimes makes sense Where you actually register, CRA versus Revenu Québec How to claim back GST/HST/QST you pay on your own expenses Why the tax you collect isn't your money, and what to do with it until you remit How the filing process and reporting periods work The extra QST boxes if you're in Quebec Check out my episode on the Quick Method, which is a simpler way to calculate what you owe, to see if you qualify: https://youtu.be/R2pmIIud1fQ Free resources for incorporated Canadians: montrealfinancial.ca/corporations Sign up for the newsletter: montrealfinancial.ca/newsletter

Most small business owners are either avoiding AI entirely when it comes to their finances, or throwing questions at ChatGPT or Claude and hoping for the best. In this episode, I walk through 7 specific ways I use AI in my own practice and with my clients for small business finance and tax related tasks. The episode shows you how save time on bookkeeping, understand financial statements, and make better decisions, along with where you still need to bring your own judgment to the table. What we cover: Turning a PDF bank statement into a usable Excel file Getting plain-language explanations of financial terms like shareholder loans and retained earnings Preparing for a meeting with your accountant so you're not going in blind Analyzing your profit and loss statement for trends and changes worth digging into Building a monthly bookkeeping routine and checklist Using AI as a brainstorming partner for financial decisions Decoding a confusing CRA or Revenue Quebec letter Where AI still needs a professional's judgment, and the privacy mistake to avoid when using it with your financial data Masterclass: if you want to go deeper on all 7 of these, real bank statements, real prompts, real numbers, check out Using AI to Simplify Your Small Business Finances https://learn.montrealfinancial.ca/using-ai-to-simplify-your-business-finances Free resources for incorporated Canadians: montrealfinancial.ca/corporations Sign up for the newsletter: montrealfinancial.ca/newsletter

f your corporation looks a lot like a job with a fee attached — CRA might classify it as a Personal Services Business, one of the most expensive classifications a corporation can receive. In this episode, I walk through what a PSB is, the factors CRA actually weighs, and practical ways to reduce your risk. What we cover: What a Personal Services Business (PSB) is and why it matters The consequences of being classified as a PSB The main factors CRA considers: control, clients, independence, financial risk Real examples: a clear PSB case and a clear independent business Grey areas CRA weighs: revenue concentration, on-site work, the option to subcontract What happens if you work through an agency Practical ways to reduce your risk Every PSB situation depends on the specific facts of your case. If you want to work through your own, book a Strategy Session: montrealfinancial.ca/services/details CRA Guide – Employee or Self-Employed: canada.ca/en/revenue-agency/services/forms-publications/publications/rc4110/employee-self-employed.html Free resources for incorporated Canadians: montrealfinancial.ca/corporations Sign up for the newsletter: montrealfinancial.ca/newsletter

Setting up your corporation's accounting properly from day one can save you real time, money, and cleanup at year end — and it's one of the most common things new corporation owners either skip too long or overcomplicate. In this episode I walk you through exactly how to set it up right, so your books are actually working for you instead of catching up to you. What we cover: - Choosing accounting software — QuickBooks Online vs. Xero, and how to decide - DIY bookkeeping vs. outsourcing to an accountant - Setting up your chart of accounts, including the shareholder loan account - Separating personal and corporate finances — and why it matters more than you'd think - Record-keeping and bookkeeping cadence — what CRA actually requires Free resource: grab my Newly Incorporated Guide, which covers this and more: learn.montrealfinancial.ca/newly-incorporated-guide Free resources for incorporated Canadians: montrealfinancial.ca/corporations Sign up for the newsletter: montrealfinancial.ca/newsletter

Before you start the incorporation process, there are five key decisions you need to make — and getting them right from the start will save you time, money, and headaches down the road. In this episode I walk you through each decision so you can go into the incorporation process informed and set your corporation up properly from day one. What we cover: Federal vs. provincial incorporation — which is right for you Named vs. numbered corporation — does it matter? How to choose a corporate name Share structure and ownership — why you need to think about this carefully at the start Choosing your fiscal year end — and why December 31 isn't always the best choice Free resources for incorporated Canadians: montrealfinancial.ca/corporations Sign up for the newsletter: montrealfinancial.ca/newsletter

One of the biggest advantages of incorporating as a solo business owner is the ability to invest within your corporation. But the tax rules are different, the planning considerations are different, and there are key concepts you need to understand before you get started. In this episode I give you a clear high-level overview of how corporate investing works in Canada — including why it matters, how investment income is taxed inside a corporation, and the key concepts every incorporated Canadian should know about. What we cover: Why corporate investing matters and who it's for How investing through a corporation actually works Types of investment income and how they're taxed differently RDTOH (Refundable Dividend Tax on Hand) The Capital Dividend Account (CDA) Passive income rules and the Small Business Deduction RRSP and TFSA considerations Are you ready to invest inside your corporation? Want to go deeper? I've put together a masterclass with worked examples, planning considerations, and a full breakdown of the key concepts: learn.montrealfinancial.ca/investing-through-your-corporation-what-every-incorporated-canadian-needs-to-know Free resources for incorporated Canadians: montrealfinancial.ca/corporations Sign up for the newsletter: montrealfinancial.ca/newsletter

The Shareholder Loan — What It Is and How Not to Get Burned If you're an incorporated Canadian business owner, chances are you have a shareholder loan account — even if you've never looked at it. It's one of the most important accounts on your balance sheet, and if it's not managed correctly, it can result in a significant and unexpected tax bill. In this episode I explain exactly how shareholder loans work and how to stay on the right side of the rules. In this episode: What a shareholder loan account is and how it works The two directions — lending to the corporation vs borrowing from it Why borrowing from your corporation can trigger tax consequences The one fiscal year repayment rule — with a real numbers example The series of loans trap CRA watches for How dividends and salary interact with your shareholder loan balance Quebec — two sets of eyes on your books How to check your balance right now and what to do about it Why picking a withdrawal strategy is essential Resources: More resources for incorporated Canadians: montrealfinancial.ca/corporations Subscribe to my newsletter: montrealfinancial.ca/newsletter

The 4 Tax Obligations Every Corporation Must Know When you incorporate your business in Canada, your tax obligations change significantly. In this episode I walk through the four primary tax obligations that apply to all Canadian corporations — so you know what's coming and can plan accordingly. In this episode: Corporate income tax — filing deadlines, year end selection, and why earlier is better Dividends — T5 and RL-3 filing requirements and deadlines Sales taxes — GST, HST, and QST registration rules and when to register early Payroll — hiring yourself as an employee and why it might make sense CPP/QPP contributions and RRSP room implications Quebec-specific deadlines and rules throughout Resources: More resources for incorporated Canadians: montrealfinancial.ca/corporations Subscribe to my newsletter: montrealfinancial.ca/newsletter

Salary or Dividends? It's Not Just About Tax One of the most common questions I get from incorporated business owners is whether to take a salary or dividends. But that's not quite the right question. The right question is: what's the best compensation strategy for your business and your circumstances? In this episode I walk through all the factors you need to consider to make that decision well. In this episode: Why the salary vs dividends question is more nuanced than most people think Cash flow and stability — salary vs dividend differences Tax installments and timing RRSP contribution room and why it matters CPP and QPP — the forced retirement savings argument How your corporate strategy affects your compensation choice Personal financial goals — FHSA, RRSP, and mixed strategies Why Quebec incorporated professionals should pay close attention The tax concept of integration and what it means for your decision Resources: More resources for incorporated Canadians: montrealfinancial.ca/corporations Subscribe to my newsletter: montrealfinancial.ca/newsletter

Just Incorporated? 7 Things to Do in Your First 90 Days You've taken the leap and incorporated your business — congratulations. But incorporation is just the beginning. In this episode I walk through the seven essential things you need to put in place within your first 90 days to make sure everything runs smoothly and you don't end up paying more than you should down the road. In this episode: Why incorporation requires a mindset shift Setting up your corporate bank account and credit card Choosing and setting up accounting software Registering for sales taxes (GST, HST, QST) How to pay yourself — salary vs dividends overview Tracking expenses and keeping records Understanding your tax filing obligations Finding the right accountant Resources: More resources for incorporated Canadians: montrealfinancial.ca/corporations Subscribe to my newsletter: montrealfinancial.ca/newsletter

Should You Incorporate? The Pros, Cons and Tax Reality One of the most common questions I get as a CPA and financial consultant is whether to incorporate. In this episode I walk through the key considerations so you can make an informed decision. In this episode: What a corporation is and how it differs from a sole proprietorship Limited liability and when it matters Credibility, professionalism and access to capital How corporate tax deferral actually works — with a real numbers example The lifetime capital gains exemption The cons: administration, costs, complexity and losses Resources: More resources for incorporated Canadians: montrealfinancial.ca/corporations Subscribe to my newsletter: montrealfinancial.ca/newsletter