BUSM19014_Week002.pdf
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The document discusses different business structures such as being a sole proprietor, having a partnership, or incorporating. It outlines the advantages and disadvantages of each structure. It also discusses finding an accountant and doing taxes as a business owner or freelancer. Business expenses that can be deducted from taxes are outlined. The importance of budgeting and tracking expenses is emphasized.
![Business Structure
Partnership
two [or more] are seen as one entity](https://image.slidesharecdn.com/busm19014week002-221220133722-fbd69a9f/85/BUSM19014_Week002-pdf-10-320.jpg)
BUSM19014_Week002.pdf
- 3. REMBRANDT Painted what and how he wanted. Ignored market/clients’needs. Bankrupt at 54. Died poor. Well known NOW.
- 4. RUBENS Painted what his clients wanted. Paid attention to market/clients’needs. Lived well. Died rich. Not as well known NOW
- 5. What kind of career do you want to have?
- 7. Business Structure Sole Proprietor Advantage: You are your own boss You are responsible and accountable to survive Your time in your own control Opportunities in other industries
- 8. Business Structure Disadvantage: No Benefits No regular paycheque No union protection No company pension No paid holiday or vacation Always on the hunt for work Sole Proprietor
- 10. Business Structure Partnership two [or more] are seen as one entity
- 11. Business Structure Advantage: Different Skillsets Shared Responsibilty for Business Shared networks Larger projects Coverage for sickness or vacation Partnership
- 12. Business Structure Disadvantage: Responsible for partners’ decisions Responsible for partners’ debts Management by consensus Partnership
- 13. Business Structure Incorporation (literally 2 bodies) (LLC, Ltd. Corp.)
- 14. Business Structure Incorporation Advantage: Personal Assets protected from creditors More access to government support Tax advantages Structure to hire employees
- 15. Business Structure Incorporation Disadvantages: Two sets of tax filing (personal & Corporate) Increased accounting fees Increased regulation
- 16. EMPLOYEE
- 17. EMPLOYEE Advantage: Defined job and responsibilies Benefits Regular paycheque (Secure) Union Protection Pension Matching Paid holiday/vacation Sometimes pleasant work environment
- 18. EMPLOYEE Disadvantages: 8 AM Classes No control over time No control over projects assigned Administrative meetings Union rules Being pleasant No OT (unless negotitated) Other people
- 20. Register a name Current Account HST # CAVCO# Business Structure Sole Proprietor
- 21. CPA CGA Business Structure Find an accountant ask for recommendations Certified Public accountant Certified General accountant
- 22. https://myportal.cpaontario.ca/ s/member-directory A second alternative is to google the Board of Trade in your city and search accountants. Business Structure Find an accountant
- 23. TAXES
- 24. Pre Pay or save to pay at least 15% TAXES (Employees deducted at source)
- 26. Not really But If you don’t file taxes & CRA catches you, fines, back taxes “garnish your wages”
- 28. Paperwork read tax prep articles listen to the budgets get an accountant TAXES
- 29. Paperwork
- 30. Deductions or Write offs self-employment expenses must be documented TAXES
- 31. Why I bought a CINTIQon December 31 TAXES Deductions BUSINESS EXPENSES
- 32. Not Free Money You have spend it to write a portion off of next year’s taxes TAXES Deductions or Write offs
- 33. Lots of info out there TAXES
- 34. “individuals may deduct all expenses incurred in the conduct of their business, provided they are undertaken to earn income, are reasonable under the circumstances, and limited or prohbited by certain rules or regulations established with respect to specific expenses.” CGA of Ontario TAXES
- 35. Business Expenses 100% Supplies Website creation Business stationary Computer software Convention expenses (2 per year) Travel for work Capital Assets CCA 30% per year (Hardware, monitors, Cintiqs, tablets, scanners, printers, cars, etc.)
- 36. Home Based Business Expenses % Rent. Mortgage. Mortgage interest. Home/Apartment Insurance -Power/Hydro Bills. Gas Bills. Property Tax Assessment. Water/Sewer Bills.
- 38. GROSS
- 42. NET
- 43. GROSS minus Deductions equals NET Terms Defined
- 44. “Why is my paycheque so low?”
- 45. Deductions from gross income CIT CPP EI Union Dues
- 47. BUDGET
- 48. “Burn Rate” How much do you money do you need to make survive and thrive in the month?
- 49. INTERACTIVE PART Demonstrate Excel sheet breakdown
- 50. https://cushionapp.com/ This is something to TRY: (before you buy) There’s lots out there
- 51. Do this for yourself for next week CONTRACTS “The Going Rate” NEXT Week: PRICING your work