Brenda asked:

My husband and I are the only shareholders in our corporation in Ontario. We operate a small trucking company. I would like to start another small home-based business (medical transcription) under the corporation, but I am not sure if we need to track this second business separately (i.e. set up an RC0002 account). If is separate, how does this impact filing the corporate tax return?

Hari S. Nesathurai answered:

Assuming your corporation has no restrictions on it either by its incorporating documents, you are at liberty to transact any business through it. You can use the same business number for GST, income taxes etc. but it is preferable to have a second account number as it is generally easier and more convenient to maintain separate books for accounting purposes for each business.

This link will take you to the government publication. http://www.cra-arc.gc.ca/E/pub/tg/rc2/rc2-05e.pdf.

About the author

Hari S. Nesathurai is the senior tax counsel at the Toronto law firm of Heydary Hamilton PC where his practice includes domestic and international tax planning and tax litigation for privately held corporations and wealthy individuals. Click here to view Hari's C.V

 
Click here to go back to Ask-an-Expert index page.