What Paperwork do you need when you are Self Employed?
I have worked with hundreds of self-employed buyers and I find that many do not have their financial paperwork handy when they first come to my office. This can create a lot of stress as you go through the process of buying or refinancing a home. If your paperwork has been thrown away or lost, it takes time to replace. To wait for this information in the mail while you a financing conditions deadline is a stress you don’t need! I advise my clients to start a binder and keep 3 years information so that it is ready to grab and go.
Here is what you want to keep in your binder: 3 years Tax returns (including statement of business activities if you are a sole proprietor), 3 years Notice of assessments, and an up to date statement of account to confirm your personal taxes are paid. You will need to confirm that you are self-employed. This can be done with GST returns, business licenses, or articles of incorporation. I would also add 3 years financial statements to the binder if you are incorporated.
Tip: Set up an account with CRA. http://www.cra-arc.gc.ca/myaccount/
This allows you to have up to date access to your Notice of Assessments, tax returns and Statement of account. Your password has to be mailed to you so make sure you set this up today, when you don’t need the information immediately. It is a free service offered by CRA and a great tool and resource.