Accounting and Tax Services for Family-Owned Businesses in Ontario and Across Canada
We handle your corporate tax, split income the right way under the TOSI rules, and build the estate freeze and succession plan that moves the business to the next generation without a surprise tax bill. Whether you run a husband-and-wife shop, a multi-generation operating company or a holdco-opco group, we keep the family group’s books clean, share the $500,000 small business deduction correctly across your associated corporations, and multiply the $1.25M capital gains exemption across the family — with AFFORDABLE flat fees.
AFFORDABLE Family Business Tax Accountant
When you run a family business, income has to work across the whole family, not just one owner, and that is where the tax gets complicated. Every dividend to a spouse or adult child is now tested against the TOSI rules, your family corporations must share a single $500,000 small business deduction, and the succession you keep meaning to plan is quietly getting closer while no structure is in place. As a dedicated family business CPA in Ontario, Gondaliya CPA specializes in corporate tax planning and income-splitting and succession for family businesses, giving you AFFORDABLE flat-fee support that keeps the family group CRA-compliant and stops tax leaking out of the business.
As experienced accountants for family-owned businesses, we work with husband-and-wife companies, multi-generational operating businesses, family holdco-opco groups, and families planning the transfer to their children. We keep your books clean year-round, tell you plainly what each family member can be paid and how, and build the estate freeze, family trust and section 84.1 transfer that hands the business down without a needless tax bill.
Let us handle the structure and the numbers so the business you built stays in the family and out of CRA’s crosshairs.
Our Official Partners
Accounting That Understands How a Family Business Actually Works
A family-owned business carries financial pressures a single-owner company never faces. Income has to be shared fairly and legally across spouses and children, the family corporations must divide one small business deduction, and the transfer to the next generation can trigger tax if it is done the wrong way. At Gondaliya CPA, we understand how a family enterprise actually operates and provide practical, family-business-focused solutions across the GTA and all of Ontario.
Stay Compliant and Minimize Your Family Business Tax
For a family corporate group, staying onside with CRA and paying the least legal tax are the same job. We keep every corporation’s filing on schedule while structuring how the family is paid, so nothing is missed and nothing invites a reassessment.
Accounting & Tax Experts for Family-Owned Businesses
- AFFORDABLE + Fully Registered CPA Firm
- Family Business & Corporate Tax Expert
- Income Splitting & TOSI Specialist
- Estate Freeze & Succession Planning
- Family Trust & Holdco-Opco Structuring
- 1300+ 5-star Google reviews
- 30-Day Money-Back Guarantee
- 60-Day Fees Matching Policy
Why Choose Our Accounting Services for Family-Owned Businesses?
Tax Planning — Family Business Expertise
We split income the right way: reasonable salary to family members who actually work, and dividends only where a TOSI exclusion applies. We weigh salary versus dividend for each owner and protect the $1.25M Lifetime Capital Gains Exemption on a future sale.
Consulting — Holdco-Opco Bookkeeping
Our bookkeeping is built for a family group. We reconcile the intercorporate dividends and management fees that flow between your related corporations, run family payroll, and keep every intercompany account clean across the holdco and opco.
CRA Representation — Succession & Estate Planning
We build the estate freeze under section 86, set up the family trust that holds the growth shares, and structure the section 84.1 transfer so the business moves to your children as a capital gain, not a taxable dividend.
Bookkeeping — Growth & Next-Generation Support
We help you bring the children into the business, plan around associated-corporation rules as the group grows, and fund the buy-sell agreement so an exit or a death never forces a fire sale of the company.
Google Reviews
Family Business Clients
Family Business Tax and Accounting Services in Ontario
Corporate Tax Filing for Family-Owned Businesses
A T2 return for every corporation in the family group, with dividends and the small business deduction handled correctly.
Accounting & Bookkeeping for Family-Owned Businesses
Holdco-opco bookkeeping, intercompany accounts, management fees and family payroll kept clean and reconciled monthly.
Corporate Tax Planning for Family-Owned Businesses
Income splitting under TOSI, salary versus dividend, estate freeze and the family trust that multiplies the exemption.
Catch-Up Corporate Tax Filing for Family-Owned Businesses
Unfiled T2s across the family group rebuilt, penalties relieved, and frozen benefits and credits restored.
GST/HST Filing for Family-Owned Businesses
HST on management fees between related corporations, full input tax credits, and line 101 matched to each T2.
Corporate Tax Cleanup for Family-Owned Businesses
Wrongly sprinkled dividends, mis-shared SBD, and undocumented shareholder loans corrected before CRA finds them.
CRA Audit Resolution Services for Family-Owned Businesses
TOSI reasonableness, family-salary and associated-corporation SBD audits defended, with taxpayer relief where it applies.
CPA Compilation Report (Notice to Reader) for Family-Owned Businesses
CSRS 4200 statements for lenders, business valuations, and buy-sell and succession financing the bank will accept.
Incorporation Services for Family-Owned Businesses
Holdco-opco setup, estate-freeze share classes, family trust, and the section 85 and 84.1 transfers to the children.
Accounting & Tax Services Tailored for Family-Owned Businesses
Real, practitioner-level CPA expertise for husband-and-wife companies, multi-generational operating businesses, family holdco-opco groups, and families planning the transfer to their children — built for how a family enterprise actually runs.
- We file a T2 corporate return for each company in your family group, reconcile intercompany balances, and confirm the $500,000 Small Business Deduction is claimed only once, so CRA cannot reassess a doubled-up deduction and charge back tax with interest.
- We prepare T5 dividend slips for every family shareholder and test each amount against the TOSI rules on Form T1206, so a dividend to your spouse or adult child is not silently taxed at the TOSI highest marginal rate.
- We allocate the single small business deduction across your associated corporations on Schedule 23, because two family companies that each claim the full limit trigger a CRA reassessment that claws back the 12.2% Ontario small business rate on the overlap.
- We calculate Part IV tax and the refundable dividend account when your holding company receives an intercorporate dividend from the opco, filing Schedule 3 so CRA sees the flow-through correctly and your family group avoids a double layer of corporate tax.
- We monitor the $50,000 passive investment income threshold in your holding company each year, because passive earnings above it grind the family group’s business limit and shift active profit to the 26.5% general corporate rate, costing real tax CRA will not refund.
- We build a holdco opco chart of accounts in QuickBooks Online so intercompany loans and advances between your family corporations reconcile monthly, giving CRA a clean audit trail and keeping the family group’s books ready for a fast, lower-cost year-end.
- We set the management fee between related corporations at fair market value and document the services behind it, because an unsupported charge lets CRA deny the deduction under section 67 and reassess both your opco and holdco with interest.
- We run family payroll on Wagepoint and file the T4 slips and source deductions for the spouse and children you actually employ, so the family member salary deduction survives a CRA review instead of being denied as unreasonable.
- We capture every receipt through Hubdoc and attach it to the transaction, giving your family corporation the six-year records section 230 requires and sparing you the penalty CRA imposes when expense support cannot be produced on audit.
- We keep your books in Xero or Sage 50 where the family group prefers it, syncing Dext receipt capture and reconciling retained earnings and shareholder accounts monthly, so statements are ready for the bank and CRA without a costly year-end scramble.
- We split income the right way, paying dividends only where an excluded amount test under the TOSI rules is met and topping up with a reasonable family salary, so the CRA cannot recharacterize the split and tax it at the top marginal rate.
- We compare a T5 dividend against a T4 salary for each owner, weighing RRSP room and CPP cost against corporate deferral, and document the pay mix so CRA cannot challenge how the family business distributes profit to spouses and adult children.
- We design an estate freeze under section 86, exchanging your growth shares for fixed-value preferred shares so future appreciation accrues to the next generation, capping the deemed disposition on your estate and deferring tax CRA would otherwise collect at death.
- We set up a family trust to hold the new common shares and multiply the $1.25M Lifetime Capital Gains Exemption across your spouse and children on a future sale, filing the T3 return each year so CRA accepts the structure.
- We manage your holdco’s passive earnings around the $50,000 threshold using corporate-owned life insurance and the capital dividend account, protecting the family group’s 12.2% small business rate from a grind that would push active profit to 26.5% and hand CRA more tax.
- We rebuild and file every unfiled T2 across your family group, reconstructing intercompany balances and dividends from bank records, so CRA lifts the hold on your corporations and stops the arbitrary assessments it issues for missing returns.
- We apply for penalty and interest relief on Form RC4288 where illness or a prior accountant’s error caused the family group to fall behind, covering the ten preceding years so CRA cancels charges instead of compounding them on each corporation.
- We restore the Canada Child Benefit and credits your family lost when unfiled returns stalled, refiling each T2 with GIFI codes and the T4 wages paid to family members, so CRA releases the payments it froze in the household.
- We reconstruct missing financial statements and Schedule 100 balances for each dormant year, capturing shareholder loan movements on Schedule 50, so the catch-up T2 filing reports the family group accurately and does not overstate the tax CRA will assess.
- We negotiate a payment arrangement with CRA collections once the back T2 returns are filed, spreading the family group’s balance over time so a single corporation’s arrears do not trigger a lien or freeze the operating company’s bank account.
- We register your family corporations for GST/HST once taxable supplies cross the $30,000 threshold, filing returns on time so CRA never assesses the family group for tax it should have collected on intercompany charges but did not.
- We recover input tax credits on the family group’s real costs — the management fee, professional and valuation fees, and shared office and software — filing line 108 accurately so CRA does not deny credits and leave the corporations paying HST they were entitled to claim back.
- We match the revenue on line 101 of each GST/HST return to the sales reported on the family corporation’s T2, because CRA’s matching program compares the two and a mismatch is one of the fastest routes to a family-group audit.
- We claim input tax credits on capital purchases the family business makes — Class 8 equipment, Class 10 vehicles, and leaseholds under Class 13 — so the corporations recover the 13% HST embedded in every asset instead of leaving that cash with CRA.
- We file HST returns for each corporation on the reporting period CRA assigns and reconcile them to the family group’s books in QuickBooks Online, so instalments are right and a single late return does not expose the whole group to penalties.
- We correct dividends a prior preparer sprinkled to family members without a TOSI exclusion, refiling the T5s and Form T1206 so the amounts are reported correctly before CRA reassesses them at the TOSI top rate and adds a gross negligence penalty.
- We fix a small business deduction mis-shared across your associated corporations, refiling Schedule 23 so the $500,000 limit is split once, because CRA reassesses every corporation that over-claimed and charges the tax back at the general rate with interest.
- We clean up shareholder loans the family drew without repaying, applying subsection 15(2) and the one-year rule before CRA adds the full balance to a shareholder’s personal income, and we record the fix on Schedule 50 for the corporation.
- We correct retained earnings and the Schedule 100 balance sheet where intercompany dividends and management fees were misposted across the family group, so the T2 ties out and CRA does not reassess the corporation on an overstated surplus.
- We recalculate the capital dividend account and safe income on hand after cleanup, because paying a tax-free capital dividend from a family holdco with a wrong CDA balance triggers a Part III penalty tax of 60% that CRA does not waive lightly.
- We defend TOSI reasonableness when CRA challenges dividends to your spouse or adult children, assembling the labour, capital, and risk evidence behind the reasonable return test on Form T1206 so the amounts are not reassessed at the top marginal rate.
- We respond to CRA reviews of unreasonable family salaries, documenting the hours and market rate behind the wages paid to a spouse or child under section 67 so the deduction survives instead of being denied and reassessed against the corporation.
- We handle associated-corporation SBD audits, proving to CRA how the $500,000 limit was allocated on Schedule 23 across your family companies so the auditor cannot deny the 12.2% rate and reassess the overlap at the 26.5% general rate.
- We resolve shareholder-loan inclusions when CRA moves to add an undocumented family draw to personal income under subsection 15(2), reconstructing the loan account and repayment timing on Schedule 50 so the assessment is reduced or reversed.
- We file RC4288 taxpayer relief for the family group when penalties came from a prior accountant’s error or a processing delay, giving CRA the ten-year chronology it needs so the interest and penalties on each corporation are cancelled.
- We prepare CSRS 4200 compilation statements for your family corporation that lenders accept, showing consolidated holdco and opco results across two fiscal years so the bank can underwrite the family group without demanding a costly audit or review engagement.
- We produce the business valuation a family needs for an estate freeze or a sale to the children, defending the goodwill and fair market value figure to CRA so the section 86 exchange is not reassessed as a benefit conferred.
- We prepare compiled statements to support buy-sell agreement funding between family shareholders, valuing the corporate-owned life insurance and the share redemption under the section 112 stop-loss rules so CRA respects the plan and the bank finances the exiting owner without dispute.
- We compile the two-year statement of financial position and operations a lender requires for succession financing, tying the numbers to each T2 filed with CRA so the next generation can borrow against the family business without a verification gap.
- We deliver the CSRS 4200 communication disclosing that no audit or review was performed, with notes on the basis of accounting, owner withdrawals, and shareholder loans across the two most recent years, so banks accept the family group’s file the first time.
- We incorporate your holdco and opco under the OBCA through ServiceOntario, setting up the family group with a NUANS name search and minute book so creditor protection and tax-free intercorporate dividends are available from day one.
- We build estate-freeze share classes right into the incorporation — voting control shares for the parents and non-voting common shares for growth — so a later section 86 freeze does not require a costly reorganization the CRA scrutinizes.
- We establish a family trust at incorporation to hold the growth shares, so capital gains can later be sprinkled to the children and each beneficiary’s $1.25M exemption used, while we diarize the 21-year deemed disposition so CRA never catches the trust unplanned.
- We complete the section 85 rollover on incorporation to move an existing family proprietorship’s assets and goodwill into the opco at elected amounts, deferring the capital gain and recapture CRA would otherwise assess on a straight transfer.
- We structure the section 84.1 intergenerational transfer under the amended Bill C-208 rules so you sell shares to your children’s corporation and claim the capital gains exemption, rather than having CRA recharacterize the proceeds as a taxable dividend.
Family Business Tax & Succession Check
Six quick questions on how you pay the family, your structure and whether the succession is planned. No fee shown.
1. Are you paying dividends to your spouse or adult children?
2. Have you completed an estate freeze on your shares?
3. Do you have a family trust holding the growth shares?
4. Do you have associated corporations sharing one small business deduction?
5. Do you have a plan to pass the business to your children?
6. Do you have a family shareholder agreement in place?
Free CPA Consultation for Family-Owned Businesses
Case Studies: Family Business Accounting & Tax
Vaughan Family Manufacturing Corp — Income Splitting Fixed Under TOSI
The problem: A husband-and-wife manufacturing company had been paying flat dividends to the wife and two adult children for years, on the advice of a prior preparer who never looked at the TOSI rules that came in for 2018. None of the family shareholders met an excluded-amount test, so every dollar was exposed to the TOSI highest marginal rate, and CRA had opened a review of the family dividends.
What we did: We tested each shareholder on Form T1206, moved the wife onto a reasonable T4 salary for the operations work she genuinely did under section 67, kept dividends only where a reasonable-return exclusion applied, and refiled the affected T5s so the split was defensible.
The result:
- Saved $27,600 per year in family tax
- Closed the CRA TOSI review with no reassessment
- Documented split that holds up year after year
Markham Family Holdco-Opco — Estate Freeze & Family Trust
The problem: A second-generation operating company held inside a holdco had grown to roughly $4.2M in value, all of it accruing to the founder’s common shares. There was no estate freeze and no family trust, so the entire future gain would land on one person’s terminal return, and only a single $1.25M Lifetime Capital Gains Exemption was available to the family.
What we did: We carried out a section 86 estate freeze, exchanging the founder’s growth shares for fixed-value preferred shares and issuing new common shares to a newly settled family trust with the spouse and three children as beneficiaries, then purified the opco so the shares qualified for the exemption.
The result:
- Multiplied the exemption across four beneficiaries
- Roughly $310,000 of future tax deferred and saved
- 21-year trust deadline diarized and monitored
Mississauga Second-Generation Transfer — Succession Under Section 84.1
The problem: A founder wanted to sell the family business to his daughter, who already ran day-to-day operations, and retire. A direct share sale to her personally left the price unfunded, and an earlier plan risked section 84.1 recharacterizing his proceeds as a taxable dividend instead of a capital gain, wiping out his exemption.
What we did: We structured the sale to a corporation owned by the daughter under the amended Bill C-208 immediate-transfer rules, met the control and involvement tests, arranged the succession financing with the bank against CPA-compiled statements, and filed the transfer so it qualified for capital gains treatment.
The result:
- Capital gains treatment preserved, not a dividend
- Founder’s $1.25M exemption claimed in full
- Ownership transferred to the next generation cleanly
Our clear, efficient process ensures every step is transparent, building trust and long-term relationships with the whole family.
Kickoff (Document Request)
Collect corporate returns, the minute book, shareholder register, family shareholder agreement, and prior T2s for every corporation.
First 30 Days (Structure & Setup)
Build the holdco-opco chart of accounts, set up QuickBooks Online or Xero with Wagepoint, and map the associated corporations.
Monthly Close
Reconcile intercompany accounts, management fees, family payroll, and receipts through Hubdoc for each corporation.
Quarterly Planning Review
TOSI check on family dividends, salary-versus-dividend mix, and an estate-freeze and succession review.
Year-End Close & T2 Filing
Trial balance, financial statements, Schedule 23 allocation, and T2 filing for the whole family group.
Get Your Family Business Taxes and Succession Done Right Today
Affordable Pricing for Family-Owned Businesses
We believe in clear, upfront pricing so you know exactly what to expect. All fees include HST.
- Tax Preparation (Corporation) — From $400
- Tax Return Filing (Corporation) — From $400
- Tax Compliance Audit — FREE CRA audit support for our clients
- Tax Strategy — FREE for our clients
- Accounting Base Plan — From $100 per month
- Bookkeeping Management — Free for our Accounting clients
- Financial Reporting — Free for our Accounting clients
- Business Formation — Flat $35
- Incorporation Process — Flat $35
- Entity Setup Assistance — Flat $35
- Full-Service Payroll — From $125 per month
Payment is by Interac e-Transfer to info@gondaliyacpa.ca only. Security question: Not Applicable, as auto-deposit is enabled.
Meet Your Lead Family Business Accountant
Meet your lead family business accountant. As your family enterprise and succession tax adviser, you deal with the same two people every year.
What Our Clients Say
1300+ five-star reviews from family-owned businesses across Ontario and Canada.
Serving Family-Owned Businesses Across Ontario
Our CPA team provides specialized accounting, tax and succession solutions for family-owned businesses throughout Ontario. We understand how a family enterprise actually operates, how CRA looks at dividends and salaries paid to the family, and how to move the business to the next generation without a surprise tax bill.
Toronto (ON)
55 Queen St E Ste 1205, Toronto, ON M5C 1R6, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Mississauga (ON)
2100 Camilla Rd #716, Mississauga, ON L5A 2J8
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Brampton (ON)
4 Starhill Crescent, Brampton, ON L6R 2P9, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Scarborough (ON)
24 Clementine Square, Scarborough, ON M1G 2V7, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Vaughan (ON)
19 Cabinet Crescent, Woodbridge, ON L4L 6H9, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Oshawa (ON)
210 Durham St, Oshawa, ON L1J 5R3, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Ottawa (ON)
2090 Neepawa Ave a314, Ottawa, ON K2A 3L6, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Etobicoke (ON)
60 Stevenson Rd #1601, Etobicoke, ON M9V 2B4, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Hamilton (ON)
70 Starling Dr, Hamilton, ON L9A 0C5, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Guelph (ON)
1155 Gordon St, Guelph, ON N1L 1S8, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Windsor (ON)
4387 Guppy Ct, Windsor, ON N9G 2N8, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
North York (ON)
150 Graydon Hall Dr #912, North York, ON M3A 3B2, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Family Business Accounting & Tax FAQs
Related Industries We Serve
Accounting for Small Businesses
- Corporate tax planning for small businesses
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Accountant for Investment Companies
- Passive income and RDTOH planning
- Intercorporate dividends and section 112
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Accountant for Sole Proprietors
- T2125 filing and CRA compliance
- HST and self-employed CPP planning
- Incorporation break-even analysis
Accounting for Startups
- Corporate tax planning for startups
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- Bookkeeping and compliance from day one
Family Business Accounting, Tax & Succession Done Right.
Corporate tax for the whole family group, income splitting under the TOSI rules, estate freezes, family trusts, associated-corporation SBD sharing, and the section 84.1 transfer to your children under one roof. AFFORDABLE flat fees, no hourly billing. Registered CPA Ontario. 1300+ five-star reviews. 30-Day Money-Back Guarantee.