Week 2: Business Structure and Taxes

1. Animation
Business
Practice
Week 2
BUSM 19014
Winter 2020

2. OG Freelancers
(To clarify)

3. REMBRANDT
Painted what and how he wanted.
Ignored market/clients’needs.
Bankrupt at 54.
Died poor.
Well known NOW.

4. RUBENS
Painted what his clients wanted.
Paid attention to market/clients’needs.
Lived well.
Died rich.
Not as well known NOW

5. What kind of career
do you want to have?

6. Business Structure
Sole Proprietor

7. Business Structure
Sole Proprietor
Advantage:
You are your own boss
You are responsible and accountable to survive
Your time in your own control
Opportunities in other industries

8. Business Structure
Disadvantage:
No Benefits
No regular paycheque
No union protection
No company pension
No paid holiday or vacation
Always on the hunt for work
Sole Proprietor

9. Business Structure
Partnership

10. Business Structure
Partnership
two [or more] are seen as one entity

11. Business Structure
Advantage:
Different Skillsets
Shared Responsibilty for Business
Shared networks
Larger projects
Coverage for sickness or vacation
Partnership

12. Business Structure
Disadvantage:
Responsible for partners’ decisions
Responsible for partners’ debts
Management by consensus
Partnership

13. Business Structure
Incorporation
(literally 2 bodies)
(LLC, Ltd. Corp.)

14. Business Structure
Incorporation
Advantage:
Personal Assets protected from creditors
More access to government support
Tax advantages
Structure to hire employees

15. Business Structure
Incorporation
Disadvantages:
Two sets of tax filing (personal & Corporate)
Increased accounting fees
Increased regulation

16. EMPLOYEE

17. EMPLOYEE
Advantage:
Defined job and responsibilies
Benefits
Regular paycheque (Secure)
Union Protection
Pension Matching
Paid holiday/vacation
Sometimes pleasant work environment

18. EMPLOYEE
Disadvantages:
8 AM Classes
No control over time
No control over projects assigned
Administrative meetings
Union rules
Being pleasant
No OT (unless negotitated)
Other people

19. Business Structure
**DISCLAIMER**
Sole Proprietor
(Blendo)

20. Register a name
Current Account
HST #
CAVCO#
Business Structure
Sole Proprietor

21. CPA
CGA
Business Structure
Find an accountant
ask for recommendations
Certified Public accountant
Certified General accountant

22. https://myportal.cpaontario.ca/
s/member-directory
A second alternative is to
google the Board of Trade in
your city and search
accountants.
Business Structure
Find an accountant

23. TAXES

24. Pre Pay
or save to pay at least
15%
TAXES
(Employees deducted at source)

25. "Preferred
Class Penitentiary

26. Not really
But
If you don’t file taxes & CRA catches you,
fines,
back taxes
“garnish your wages”

27. CRA
(Canada Revenue Agency)
Audit
TAXES

28. Paperwork
read tax prep articles
listen to the budgets
get an accountant
TAXES

29. Paperwork

30. Deductions
or Write offs
self-employment expenses
must be documented
TAXES

31. Why I bought a CINTIQon December 31
TAXES
Deductions
BUSINESS EXPENSES

32. Not Free Money
You have spend it
to write a portion off of next year’s taxes
TAXES
Deductions
or Write offs

33. Lots of info
out there
TAXES

34. “individuals may deduct all expenses incurred in
the conduct of their business, provided they are
undertaken to earn income, are reasonable under
the circumstances, and limited or prohbited by
certain rules or regulations established with
respect to specific expenses.”
CGA of Ontario
TAXES

35. Business Expenses
100%
Supplies
Website creation
Business stationary
Computer software
Convention expenses (2 per year)
Travel for work
Capital Assets CCA
30% per year
(Hardware, monitors, Cintiqs, tablets,
scanners, printers, cars, etc.)

36. Home Based Business Expenses
%
Rent.
Mortgage.
Mortgage interest.
Home/Apartment Insurance
-Power/Hydro Bills.
Gas Bills.
Property Tax Assessment.
Water/Sewer Bills.

37. loss
against
income
Terms Defined

38. GROSS

42. NET

43. GROSS
minus Deductions
equals NET
Terms Defined

44. “Why is my paycheque so low?”

45. Deductions from gross income
CIT
CPP
EI
Union Dues

47. BUDGET

48. “Burn Rate”
How much do you money
do you need to make
survive and thrive in the month?

49. INTERACTIVE PART
Demonstrate Excel sheet breakdown

50. https://cushionapp.com/
This is something to TRY:
(before you buy)
There’s lots out there

51. Do this for yourself for next week
CONTRACTS
“The Going Rate”
NEXT Week:
PRICING your work