I run "MY_NAME Consulting Ltd." It's a very small business - I'm the sole director and employee. I have 2 unrelated revenue streams there: 1. 30% of my revenue does indeed come from consulting. 2. 70% comes from a gardening website I run. I want to split this into 2 corporations, mostly just because it will be cleaner to have separate bank accounts, bookkeeping, etc. My question is: if I set up "Gardening Yada Yada Ltd." and start running the gardening website under that name, will it raise any red flags with the CRA that, because of the move, my revenue under "MY_NAME Consulting Ltd." will drop by 70% on my taxes? Would it be better to rename "MY_NAME Consulting Ltd." to "Gardening Yada Yada Ltd." and instead set up "MY_NAME Yada Yada Ltd."?
Answer by Shira Kalfa
Not VerifiedOntario lawyer
Posted 8 months ago
Shira Kalfa is a founding partner of Kalfa Law, a business & tax law firm in Toronto. As the lead solicitor at Kalfa Law, Shiras' practice is focused on:
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