Location: God's own country
Posted on: 24-11-06 11:26:36
CD's,
My office has told me to open a buisiness account with a company name. Our Auditor told me that it need not be registered. He however told me that the banks will ask if i did a name search as to if my new company name was not one that was existing.
Can CD's advise me the concept of this business account banking and how much do the banks usually charge for this type of account. Also how do i calculate the tax to be paid to the govt. for this account.
Experienced CD's can please help me.
Thanks
TK A
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I am a Gents and not a Ladies.
Tk,
I'm very new to this game and very inexperienced in this game. I'm paying $6 per month for the bank account and I got a visa card with 15K limit on it paying $12 per month on it. They have not given me a OD or a LOC on this account.
It cost me around $70 bucks for registration along with the GST number, name search for the business name. It is very simple and you could do it over the internet.
Sorry if I have not answered your \"Q\", as you have addressed it to experienced CD's on this issue.
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Quote:
Originally posted by tamilkuravan
Also how do i calculate the tax to be paid to the govt. for this account.
The govt does not tax the account. It taxes your income. It helps to have a separate account for business income and expenditure for clarity purposes for yourself(tax,bookeeping etc) and also the bank if you intend to ask them for more loans/credit etc....It will show the financial operations(in time) of your business to the creditor.
Fees and features of the accounts vary depending on the bank. A basic account without the bells and whistles will fall between 5-10$.
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Location: God's own country
Posted on: 24-11-06 16:13:06
Thanks for the feedback.
As per Sank's advise, registered the company online with the name "TK Design Consultant" (My boss warned me that my company name should not have my real name). I have my BIN number and i paid $60 online.
I am wondering if i should register for my GST number but i could not find a suitable link to register it online and also wondering if registering for theGTS number could lead to some complications. Anyway ,y remuneration is below 30K and hence wondering if i should do it.?
More inputs welcome.
TK A
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I am a Gents and not a Ladies.
Location: God's own country
Posted on: 25-11-06 15:49:44
CD's,
This is to inform you that i have opened a Business account with TD bank. I just walked in and asked to speak with someone to open a Business account.
I choose the least monthly fee one. This came with a $10 monthly charge and 10 free transactions per month. It has no min. fee.
The agent did not give me any LOC nor a Business credit card.
I am still waiting for some one to update me on the need / requirement for a GST number.
TK A
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I am a Gents and not a Ladies.
Is your total sales before expenses going to be more than 30k/12 months? If not you do not have to.
Advantages:
You can claim back gst/pst(qst in quebec) from the govt on your business purchases. In the case of GST its tax credits. In the case of qst(quebec)...you have to send a report monthly/quarterly/semi-anually/anually(depending on your sales) and the govt sends you a cheque or you send the govt a cheque depending on if you owe them or they owe you. not sure if it works that way in Ontario too.
Disadvantage:
Additional bookkeeping hassles. It can be a pain to fill in those reports monthly and quarterly by yourself.
If this affair is limited in scope and going to be below 30k for a reasonable amount of time, and if the business expenses are not major...you dont have to. If the business grows, you can always and register for it later and hire an accountant.
http://sbinfocanada.about.com/od/startup/f/registerGST.htm
Talk to an accountant OR revenue canada to be totally sure if its for you or not.
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