April Fool! It’s Tax Tip MONDAY! Worst April Fool’s Day joke ever? You bet! But I’m The Funny Accountant so fortunately (and unfortunately) I decide what is funny and I have determined that it is, in fact, funny to pretend that it’s a day earlier than it actually is. Har-dee-har!
Bringing us to today’s tax tip…if you’re thinking about creating a small business (or if you’re already in operation – hooray!) it may not be best to jump right into Incorporation. A registered business is a great alternative to a corporation and will save you a lot of cash on accounting and lawyer’s fees. Plus, all the cool small businesses are doing it!
Small businesses also give you the ability to remain flexible in your family’s financial planning. It’s a tax planning tool we “trendy” accountants (like yours truly) call income-splitting which is really just a fancy way of saying that you’re paying your better half to do a bunch of work for you at home. Which we all know is actually happening and is therefore an entirely justifiable business expense!
I could go on for hours about this topic but it’s April Fool’s Day not Boring-Droning-on-Blog-Post-Day” (that’s coming up in May!). So I will leave you for the week with thoughts of whoopee cushions, hand-buzzer rings and the old “sugar-replaced-by-baby-powder-trick” (warning – the latter may get you fired from either your salaried job and/or your small business job).
Sincerely Yours (April Fool!),
The Funny Accountant.