Hello,
I’m working a full time 40~50 hours a week as an employee, Thinking about starting my own company as a delivery driver (no uber) as a side hustle (self employed).
How will it affect my taxes in general? (tax return, paying taxes etc)
I’m new to this field, any information will be much appreciated.
Thank you!
Better talk with your tax preparer for more details. Obviously the side line profit will be taxed.
Consulting with an accountant before becoming an entrepreneur will allow you to avoid many potential pitfalls on that path. There’s much more than tax returns and taxes to consider.
Vehicle expenses, home office and HST considerations are areas you need to look at. CRA is known to check vehicle and home office expenses. As the others have indicated, getting professional advice is not an expense, but rather a way to avoid expensive problems later on; problems that are not so easy to fix after the fact.
@azulaipark
“starting my own company”
“How will it affect my taxes in general”
“a side hustle (self employed)” income as you put it, is Section 9 income, and comes with things like requirements to comply with many significant things, including Section 230.
Should Section 230 not be complied with, for example, Section 238 provides for “…is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to (a) a fine of not less than $1,000 and not more than $25,000; or (b) both the fine described in paragraph 238(1)(a) and imprisonment for a term not exceeding 12 months.”
So yes, an early discussion with your CPA is extremely helpful, and usually essential.
You should definitely meet with an accountant, whether a CPA or PBA. Those are both designations here in Canada, and either one has the education and training to help you and answer your questions.