Entrepreneurship & Small Business

Is there any institution that offers free counselling and financial advice to small businesses ?

  • Last Updated:
  • May 16th, 2018 5:16 pm
[OP]
Deal Addict
Jun 27, 2015
1120 posts
84 upvotes
East York, ON

Is there any institution that offers free counselling and financial advice to small businesses ?

I have a question regarding the shareholder's loan, I need to be 100% sure that what I am doing is legal and it won't be challenged
I need to borrow money from my company, I will set an interest rate for that loan as prescribed by CRA and plan to return money not by the end of the year when I borrowed the money but by the next year

I just can't find anything on the CRA site that explains this clear
Instead I am seeing this everywhere else but some sites contradict the others and I am not clear on how this works so I need to call somewhere for this quick question

Is there such a place where I can call ?
4 replies
Deal Fanatic
Feb 9, 2006
9038 posts
2933 upvotes
Brampton
Each Municipality has some time of small business program.
In East York I'd call up 311 to see what the City of Toronto has to offer.

I know in York Region you call up Access York and they'll connect to you to the Small business Consultant team.

If you still don't get the answer you're asking for, as this seems very specific you should talk to an accountant or tax lawyer.
Deal Addict
Jul 3, 2017
2676 posts
1787 upvotes
This sounds more like a specific legal/tax issue rather than general business advice. Any agencies that provide general business advice are likely to tell you to consult a lawyer or tax accountant.
Jr. Member
Jun 23, 2010
197 posts
50 upvotes
Feel free to pm me with a little more detail, I'm a cpa with a practice and I'd be happy to give you a general idea.
[OP]
Deal Addict
Jun 27, 2015
1120 posts
84 upvotes
East York, ON
The CRA site (canada.ca now) clearly says that you have to pay your debt by the end of the next year after the year when you borrowed the money
In some cases this will result in a taxable benefit in the hands of the shareholder and that is described here:

https://www.canada.ca/en/revenue-agency ... dings.html

Practically that means that:
-if you paid your loan in 2 years you will also have to have paid the interest corresponding to each personal taxation year in each of the two years otherwise that will be considered a benefit in your hands as shareholder

Now what I am not clear on after reading what is qualified as loan to a shareholder, is to what degree the purpose of the loan matters in case you are a shareholder
If you get the money as employee and shareholder you need to prove that you offered that option to your other employees (does not apply in my case)
If you get the money as shareholder does it really matter how you use the money ??? I don't see why. in my case it is to pay of the low balance of my mortgage whose anniversary date is closing. Will that change anything ?

I need to read that Tax act again and again till I clearly understand and see beyond the formal language used in the document. I am falling asleep every time I go through it :-))

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