I'm in Ontario Canada and I'm starting my VA business with a partner, I was just wondering if anyone knew if we should do our business taxes together and separate from doing our personal taxes?

I can't speak to the Canadian tax system, but my husband and I are just now in the process of registering our business as an LLP (limited liability partnership) here in the States so I've recently started researching how we will be handling our taxes - what I've found (and please note I am no expert on this, this is info I've searched for )

There is no double taxation applicable to partnerships. These are pass-through entities, which means that each limited or general partner is taxed at his or her individual tax rate for their share of the profits earned in the business, under his or her individual name and social security number. There is no business entity level tax, but the LP should file an informational federal return and K-1 forms should be sent to each limited and general partner representing their share of profits.

Because we are married, we will then file as 'married filing jointly' to receive the appropriate deductions...
(I'm sure that if I've got any of this wrong our resident tax experts will be kind enough to correct me accordingly! )

To try to help answer your question relative to Canada's laws, I found this article that answers the question 'my business is a partnership [in Canada] which income tax form do I need to fill out?' (and you can also click around that site for even more info) - hope that helps!

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I don't know about Canada taxes, but here in the States you would file a separate Partnership return, from the partnership return you would each receive a statement of your income/expenses based on your percentage of the partnership that you would then carryforward to your personal return. If the partnership was a corporation then it has it's own tax return and the corporation pays the taxes.

I'm sure Canada has something similar, I would suggest seeking some counsel about which method is the best tax-wise for you and set up your partnership accordingly.

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Rebecka Melson ~ Virtual Business Services

Thanks for the link Tess! It did help!