Canadian Entrepreneurs Don’t Understand How Company Structure Affects Taxes, New Ownr Survey Finds
- Two-thirds (66%) of Canadian business owners surveyed find the tax filing process confusing, and that number has risen to 72% among millennial business owners.
- The survey also found that two-thirds (66%) of registered business owners surveyed admit that they have not taken advantage of any applicable tax benefits.
TORONTO, April 17, 2019 / CNW / – Many Canadian entrepreneurs and small business owners do not understand how their business structure can affect the tax filing process and many are leaving money on the table, according to a new survey conducted by Owner, an online platform that makes it easy, convenient and affordable for small business owners to register or incorporate their business and build their brand.
Two-thirds (66%) of registered business owners surveyed not only found the corporate tax filing process confusing, but also admitted that they had not taken advantage of any applicable tax benefits, including including the small business tax deduction, tax deferral, or income splitting.
âIt’s no surprise that many small business owners don’t ask for the tax benefits available when so many find the tax filing process complicated at first,â said Shadi McIsaac, co-founder at Ownr. âAs we approach the April 30e Personal income tax filing deadline, it is important for business owners to understand the implications of how their business structure might affect their return. For business owners focused on growing their business, it could mean a lot of extra money in the bank if they know how to use from Canada many tax incentives for small businesses.
According to the survey results, it would also appear that many Canadians do not know how the structure of their business, whether registered as a sole proprietorship or a corporation, affects their taxes, despite the fact that these distinctions may result in a wide variety of annual taxes. savings. About one in four registered business owners (26%) surveyed confirm that they have little or no understanding of how registering or incorporating their business affects their taxes.
âFiling business taxes for the first time can be difficult and even scary, which is why it’s important to educate yourself about how your business structure affects your taxes, well before you even choose to register or register. incorporate you, âsaid Viviane Kaye, user owner and founder of KinkyCurlyYaki. âFrom my perspective, understanding the difference between sole proprietorship and incorporation can make all the difference to your personal finances and your tax savings over time. For example, the sole proprietorship would have put me in a much higher tax bracket. however, kept me in a more manageable range, a range that came with added flexibility when setting my fiscal year, which is always important for a small business. easy.”
Owner went on to find that among those surveyed, Canadians with a business that they have not yet registered as a sole proprietorship or to be incorporated are even more unlikely to understand the tax process than those who do not. registered business owners. Of the unregistered business owners surveyed, 71% expect the tax filing process to be confusing, half (50%) are unaware of the tax benefits available, and two-thirds (66%) are unaware not whether operating a registered business will have an impact on their personal finances.
To learn more about Owner, visit owner.co
Ownr examined responses from 580 entrepreneurs and small business owners, those with less than 99 employees, who are Ownr users, through Ontario, Alberta and British Columbia to an online survey regarding attitudes and knowledge of business structure, in particular, how business structure has the potential to affect taxes. The survey was emailed to Canadians who had chosen to receive communications from Ownr.
About the owner
Owner, owned and operated by RBC Ventures Inc., is an online platform that makes it easy, convenient and affordable for Canadians to register or incorporate their businesses to build their brand. Ownr has provided its business registration and logo design platform to over 6,000 entrepreneurs to date, saving them hundreds of dollars in fees typically charged by lawyers, accountants and designers. for such services. The owner is based in Toronto, and its registration services are currently available in Ontario, British Columbia, and Alberta.
About RBC Ventures Inc.
RBC Ventures Inc., a subsidiary of Royal Bank of Canada, goes beyond banking to create meaningful solutions that affect all Canadians. We build new businesses, acquire growing businesses, make investments and collaborate with organizations that share our vision. For more information visit RBCAventures.ca.
Owner of SOURCE
For further information: Erica Salvalaggio, Eighty-Eight on behalf of RBC Ventures, [emailÂ protected], 416-944-2722; Jean FranÃ§ois Thibault, RBC Ventures, [emailÂ protected], 647-624-1860