A number of non-essential service workplaces, from libraries to casinos, have been mandated to shut down in Ontario in an attempt to curb the spread of COVID-19.
Parties are a great way to celebrate the holidays and give your employees an opportunity to relax and mingle outside of the regular day-to-day activities in the office. As a business, the cost of these parties may be fully deductible on your business’s tax return.
There are, however, two important rules to remember when hosting a holiday party, or any employer-organized social event. These rules will ensure you can take advantage of these deductions.
If you own an incorporated business, you likely know that you can withdraw funds from your corporation in one of three ways - a salary, a dividend, or a shareholder loan.
Of these, shareholder loans are the most often misunderstood and misused form of withdrawal. A fact that can result in negative tax implications for the withdrawer, if not used correctly.
It is not uncommon for a business to be audited by the Canada Revenue Agency (CRA) and for most taxpayers, the idea of being audited is something that is dreaded by most small to medium-sized business owners.
But, having a better understanding of the process and knowing where to get help can be an effective way to help make the process easier and less stressful.
As a business, you have the legal right to your ideas, innovations, and designs, not to mention the elements that represent you as a brand - names, images, models and symbols. While intangible, these intellectual assets have value and give you a competitive edge. That is why you need to protect it.
But to protect your intellectual property you must ensure it has been properly registered.
In our last blog, titled ‘4 Common Legal Mistakes Made by Small Businesses: Legal Mistake #2 Not Receiving Key Agreements in Writing’, we discussed the importance of drafting written agreements when it comes to protecting you and your business.
While verbal agreements may have been sufficient in past business dealings, we are increasingly seeing deal breaking and lawsuits happening as a result of verbal agreements or contracts that are poorly drafted.
Unfortunately, small business owners, especially those just starting up, continue to enter into verbal agreements without even realizing the risk they are putting themselves in.
Whether your business is large or small, you will face a number of legal issues when first starting up. The difference is, that as a small business owner, you likely don’t have the same access to legal counsel that your larger counterparts would have.
That is why, before going into business, you should be fully aware of the costly legal mistakes small business owners can make. This will allow you to get the necessary support where you are sure to need it.
