ups/downs and questions about a home business
12-30-2007, 10:32 PM
#1
ups/downs and questions about a home business
Hey folks.
Workin on starting up a home business of some sort (fixing computers). I've got a business name, but i'm currenlty unsure whats required to make myself legitimate. I've read online i need to register the name although i don't understand if that means a business license or what.
What is the purpose of a business license vs not having one?
I understand I can make up to $30,000 in a 12mo span without charging GST, but anything over that and I must begin.
Apart from the above questions, which i've been searching online but struggling to find actual answers, what are the advantages of a home business? My parents tell me I can write off all sorts of things, but I don't exactly understand what this means or what type of stuff can be 'written off'.
Any help is appreciated.
Workin on starting up a home business of some sort (fixing computers). I've got a business name, but i'm currenlty unsure whats required to make myself legitimate. I've read online i need to register the name although i don't understand if that means a business license or what.
What is the purpose of a business license vs not having one?
I understand I can make up to $30,000 in a 12mo span without charging GST, but anything over that and I must begin.
Apart from the above questions, which i've been searching online but struggling to find actual answers, what are the advantages of a home business? My parents tell me I can write off all sorts of things, but I don't exactly understand what this means or what type of stuff can be 'written off'.
Any help is appreciated.
12-31-2007, 11:13 AM
#2
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Join Date: Feb 2006
Posts: 16,855
Have you registered the business name and posess a business number? If so, you're legitimate. What getting a municipal business licence will do is legally allow you to conduct business in your city.
I went through this last year and the online information can be bloody confusing - especially if you tie into the Revenue Canada website.
I found this site very helpful and it walks you through and gives you all the links you need. It's BC based but the info is useful: Welcome to the OneStop Business Registry
As for 'writeoffs' it is best to talk to an accountant as everyone's situation is different.
Honestly my two biggest hurdles have and continue to be website design and packaging.
I went through this last year and the online information can be bloody confusing - especially if you tie into the Revenue Canada website.
I found this site very helpful and it walks you through and gives you all the links you need. It's BC based but the info is useful: Welcome to the OneStop Business Registry
As for 'writeoffs' it is best to talk to an accountant as everyone's situation is different.
Honestly my two biggest hurdles have and continue to be website design and packaging.
01-02-2008, 03:25 PM
#3
A city biz license is only if you have a storefront though. Or if you have a biz that requires customers to come into your place of business. You can apply for the GST number (if you figure you will make 30+k of gross income in 1 calendar year) without having to register for a business name or license. That is what an accountant told me anyway.
Best advice though is to talk to a small business accountant and get their recommendations. Write-offs are applicable to whatever you purchase that is required for your business. Some are 100% deductible (like a computer purchase or office furniture if that's what you need for your business) against your business taxes for the year. Some are only partially deductible. Again, the accountant knows best.
Best advice though is to talk to a small business accountant and get their recommendations. Write-offs are applicable to whatever you purchase that is required for your business. Some are 100% deductible (like a computer purchase or office furniture if that's what you need for your business) against your business taxes for the year. Some are only partially deductible. Again, the accountant knows best.
01-02-2008, 04:29 PM
#4
save every and all receipt, doesnt matter if its from business depot or from mcdonals and take them all to your accountant, he will know what u can and cant write off. by write off they simply mean extra expensses that are written AGAINST your revenue.......basically you pay less income tax.
yah u have to register your business, then u will get a business name and thats how you pay your income tax. just like every individual has a SIN number and thats how governmnet tracks everyone and makes sure they all pay personal income tax. u register a business and get a business number for the same purpose.
yah u have to register your business, then u will get a business name and thats how you pay your income tax. just like every individual has a SIN number and thats how governmnet tracks everyone and makes sure they all pay personal income tax. u register a business and get a business number for the same purpose.
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