Q.My business made no money this year. Can I still claim business expenses?

Being a sole proprietor or partner if you are using the T1 form to file your income tax, you will be listing different business expenses while filling out the Form T2125 (Statement of Business or Professional Activities). You will record a business loss on the form if your business income is less than your business expenses. Now will you be able to use this loss to claim your expenses depends upon whether you have another source of income or not. If you have another source then you may wish to use the income by taking it from this business (the non-capital business loss) to compensate your other income which will end up claiming the business expenses.

Q.Can I claim business expenses that I no longer have receipts for?

No you can’t because you must have support of original documents for all the claimed expenses of the business on your income tax return, such as receipts. The Canada Revenue Agency may decide to reduce the amount of deducted expenses if you don’t have an “evidence” on receipts for all claimed business expenses. The auditing process would be made more complicated and difficult if your business expenses claimed don’t have the support of receipts.

A certain number of income tax and GST/HST accounts are being regularly audited each year by the Canada Revenue Agency to maintain a quality check on the tax system and to monitor its performance or reliability. You will surely want all your accounts in order if your business is choosen for auditing. Besides for auditing purposes, it is a mandatory requirement for the operation of a successful business to keep all the business records up-to-dated, complete and accurate.

Q.Can I Start a Small Business in Canada When I'm Not Living in Canada?

Yes it is possible for a nonresident to start a business in Canada but there are a few requirements to be fullfiled. Are you a Canadian,firstly? If yes then all you should have is a Canadian address (a real address, not a post office box). If you have one yourself or have established a Canadian address and are a Canadian citizen then you can get registered for your new business in the same province where the address is located in and get started as a sole proprietor. But if you don’t have your personal address then you can form a partnership with a Canadian resident and use his/her address for starting your new business.

Q.How do I find small business start up money?

There are 3 most popular sources of getting the start up money for small business. First is mostly people start looking into your own pockets, even if they have plans to take small business loans, but almost every financial lender expects some personal financial contribution such as interest from the borrower.

But if the persons own pockets are empty then the second most popular option is taken which help from friends and/or family.This sort of financing mostly takes the shape of personal loans.

And the third mostly popular source are the financial institutions such as credit unions,banks etc.to gain finances from this area you will need certain things like a good credit rating, a solid and practical business plan, skills, expertises and collateral.

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