A funded startup needed compliant payroll and stock-option handling. We set it up correctly before the first hire.
A newly funded startup was about to hire but had no payroll account and an informal stock-option plan. We registered payroll, set up compliant source-deduction remittances, and structured the option plan with proper tax treatment and documentation. The company scaled its team without payroll penalties or option missteps.
Technology files centre on SR&ED documentation and place-of-supply rules for digital products sold across borders.
Employers withhold CPP, EI and income tax and remit on a schedule set by their average monthly withholding. Late remittance carries a penalty of 3% to 10%, rising to 20% for a repeat failure with gross negligence in the same year.
Why it bites: Payroll penalties compound quietly. An employer that drifts one cycle late each quarter can owe more in penalties than in the tax it was late paying.
The first fiscal year-end must fall within 53 weeks of incorporation and sets every filing deadline that follows. Share structure decided at incorporation governs who can receive dividends later.
Why it bites: Year-one choices are cheap to make and expensive to undo. Restructuring share classes after value has accrued triggers its own tax consequences.
Source deductions are held in trust for the Crown from the moment they are withheld, which is why directors can be personally liable for unremitted amounts under section 227.1.
Why it bites: Unlike most corporate debts, this one can follow the directors personally after the company is gone.
Every engagement above was priced as a fixed fee agreed before the work started, and paid only once the client had reviewed the result. If any of this looks like your situation, the first step is a free 15-minute call — we will tell you plainly whether there is anything worth doing.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe a real engagement; outcomes depend on your own facts. Client details are omitted for confidentiality.
