Business tax help
Not sure if this is really the best place to ask this but I’m not sure where else.
Essentially the problem we are facing is my gf quit her job and changed over to contract work. This has been great, and when she was making enough we looked into sole proprietor vs incorporating. The advice we were given was incorporating (to avoid liability) and so we went with that. Registered a federal corporation, all cool. Taxes though have been a nightmare, and after struggling on her own she hired an accountant. This doesn’t seem to be helping however, and we just have no idea what to do.
The federal GST is paid, but supposedly the corporation also needed to register in Alberta. We were not aware of this. So the accountant is asking for a corporation number we don’t have. Now going to the registry the registration is put through, but… it can’t be backdated. So now we just don’t know how to pay last years taxes and the accountant is extremely unhelpful. They are just constantly rude about how we don’t know how to do this, but that’s why we got help from them.
We just need to know how to resolve this situation? Next year taxes will have federal and provincial setup and should be fine. But for this year we just can’t figure out how to get it done, the accountant is unhelpful, and my gf is breaking down. If anyone has advice on how to resolve this we would be extremely grateful.
5 comments · 50% upvoted · other discussions
If you're incorporated at the federal level, I don't understand the need for provincial incorporation. It is normally one or the other.
abear247 [OP] 1 points · May 2024
That’s what we thought, but the accountant is insistent that we have an Alberta corporation number. She said you need this number to file the tax return, it’s an “Alberta company” we need this for the return. Which doesn’t make sense, because it’s incorporated federally.
momothereal 2 points · May 2024
At least in Ontario you register what is called an Extra-Provincial Corporation, meaning your do business in the province but the corporation is headquartered in another jurisdiction (e.g. Federal). So that gets you a corporation number in Ontario.
Quick Google shows Alberta has the same
https://ised-isde.canada.ca/site/corporations-canada/en/register-federal-corporation-province-or-territory
gamefixated 2 points · May 2024
I see this is new, and my Federal Corp information would have been migrated automatically to the Ontario system (OBR) when they created it.