business tax deductions canada
Information About Canadian Home Based Internet BusinessesIf you live in the Canada area you can easily find some reall...
business tax deductions canada
Information About Canadian Home Based Internet Businesses
If you live in the Canada area you can easily find some really nice work at home ops. These opportunities are home based businesses, franchises, freelance jobs and much more. I’m also going to include some information about Canadian tax laws as well. When you start working at home there are two really big things you should be concerned about and be ready to take care of. The first thing is taxes.
Thankfully if you do things right you can have a lot of write offs so at the end of tax time you can pay less on those items you bought for your business. Also, make sure you actually pay your taxes! I know this sounds like a dumb thing to bring up but you would be surprised how many people think that just because they work at home, they can stop paying taxes! No, it doesn’t work like this! The second thing you want to look into is different zoning laws about your house.
Since your home will be a large part of your home business, you want to make sure you follow any and all zoning laws. You wouldn’t want to make the mistake of setting up a home business at home, only to find that zoning laws prohibit you from converting your home into a business area!
Now on to the businesses. Here are a few franchises as well as other businesses like network marketing business you can look into. You can also look for sites that have “Canadian Home Based Internet Businesses” online:
Franchises:
Home Doctors Handyman Service – Investment Level $30k
Home Inspection Service – Investment Level $30k
Health Career Agents – Investment Level $30k
Interiors by Decorating Den – Investment Level $40k
Snap On Tools – Investment Level $39,334 – $52,000
Floor Coverings International $70k
Network Marketing:
USANA Health Sciences
MonaVie
The Davis Consulting Group
Amway
Gourmet Coffee Club
Websites to visit:
Yahoo Canada Directory – Business_and_Economy/Business_to_Business/Business_Opportunities/Network_Marketing/
TheNetworkMarketing Magazine
PowerHomeBiz
About: Small Businesses in Canada (tax information)
About: Small Businesses in Canada 6 Home Based Business Tax Deductions You Don’t Want To Miss
You can also search for books on places like Amazon and Ebay, as well as free e-books online. All of this information should get you a little closer to having the home business you want, as well as having some really good information about how to run your business, do’s and don’ts, laws, tax info, etc.
Have fun finding the perfect business! It’s going to take a little patience and determination but, I’m almost positive once you get through the “rough” stuff you will really enjoy this and be happy that you chose to work from your own home office. In my experience it has been one of the BEST choices I have made in life thus far!
What do I need to do for taxes if I’m a webcam girl?
I really need some help with webcamming and doing taxes since most sites don’t do deductions on your pay cheque. I’ve read a couple different sites about being a webcam girl. One said that I need to get a small business license to do my taxes. Is that true? I’m not sure what I may need to claim or how to figure out my own deductions. Also I live in Alta, Canada.
If you have income, you pay income taxes on it. In the USA it’s called “self-employment tax”. Whether you have a license is unrelated to the tax issue.
Mary Kay Secrets | How Top Internet Marketers Are Building Their Mary Kay Business
A sole proprietorship is a registration of a business that is owned by an individual. The proprietor is said to be self-employed. This is the simplest form of a business organization. The proprietor secures the capital, establishes and operates the business, assumes all the risks, accepts all the profits and losses, and pays all the taxes. Any legal responsibilities arising out of the business activities are the proprietor’s. All assets, business or personal, can be legally used to discharge the liability.
If an individual wants to carry on business under his or her own name then he or she does not need to register. However, if you wish to obtain other types of licenses for your business, you may still need to register. If the individual wishes to carry on business under a name other than his or her own then he or she must register that name. An example of a sole proprietorship would be Joe’s Dry Cleaning.
Sole Proprietorships are governed pursuant to the provincial and territorial legislation in Canada. Depending on the province or territory in which you live, there will be a different procedure. However, basically a form will need to be completed and a fee will need to be paid. In some provinces or territories the name of the sole proprietorship will also need to be cleared and reserved. In Ontario it is not necessary to reserve the name in advance.
The sole proprietor has control over all decisions related to the business. All profits of the business revert to the sole proprietor unless he chooses to share some of the profits with his employees. Minimal legal assistance is required and therefore the startup costs are less. Less government filings are required as well. The freedom to make decisions and plan without consultation enables the sole proprietor to react to change and new opportunities more quickly.
On the downside, the sole proprietor is personally responsible for the debts and actions of the sole proprietorship. A creditor with a claim against a sole proprietor would normally have a right against his or her personal assets. If the claim was large then this could cause financial difficulties. Insurance should be considered for such risks. Since there is only one person if that person does not have the proper expertise then the business could fail. As well, obtaining financing can be difficult because banks may be reluctant to lend to a sole proprietor with a business idea. It can be more difficult to sell a sole proprietorship and the person may be restricted to selling the assets alone rather than the business itself.
Business income is taxed in the hands of the owner as personal income. All business losses, except for some, can be deducted from the owner’s personal income tax. At lower levels of income it may be more advantageous to be a sole proprietor because the corporate tax rate is greater than the lowest personal income tax rates. At higher levels the corporate rate may be less. You should discuss this with your accountant before making a decision on the best form of business to start.
Can you register your own sole proprietorship? In most jurisdictions in Canada you can. There are a number of online services available with the use of a credit card or you can attend your local provincial or territorial government to register in person paying cash or by cheque. Some provinces have Kiosks available where you can register online.
The registration of a sole proprietorship lasts from three to five years depending on where it is registered in Canada. You must renew it just prior to or on the expiry date. Some jurisdictions may provide for a grace period. It is suggested, however, that you renew just prior to the expiry date to ensure that you obtain the same registration number. There will be a fee payable upon renewal of your sole proprietorship. The onus is on the sole proprietor to know when his or her registration is going to lapse and to ensure it is renewed. The government will not let you know when it is about to expiry.
If you do not renew your sole proprietorship registration on time you will need to register your sole proprietorship as a new registration. It will be given a new registration number. If this occurs you should let Canada Revenue Agency know about the new registration number so they can connect it to your federal Business Number.
If any of the information on the form that you initial registered changes an amendment must be filed.
The name of the sole proprietorship cannot be amended. If you wish to change the name of your sole proprietorship you will need to register a new sole proprietorship and cancel the existing one.
In order to cancel a sole proprietorship you must file a cancellation notice. There is no fee for this.
If you decide to carry on business under a name other than your own and you do not register pursuant to the legal requirements you could be levied a fine. One of the purposes of registration is to allow individuals and corporations who contract your services to be able to include your contact information on court documents if they wish to sue your sole proprietorship. If at any time a client or customer determines that you are not registered, a complaint can be filed with the Ministry of Government Services and a fine could be levied.
On the other hand, if you wish to sue a customer for non-payment or otherwise, if you are not registered as required by law, you will not be able to pursue a lawsuit in any court.
The internet has enabled potential customers to look into businesses prior to dealing with them. In order to ensure these individuals decide to use your services or buy your products over others, a legal business is the first step in gaining their confidence.
On the other side, you can contact a search house to find out about a business you are considering working with. There are a number of reasonably priced searches available that might give you an idea what type of organization you are dealing with. I have come across companies in the past who are not registered and have refrained from doing business with them because of this since I knew I needed a service I could trust for future relations.
You can register your sole proprietorship in any or all of the provinces and territories in Canada. You will need to ensure you are registered in your home jurisdiction. Secondly, you will need to register “extra-provincially” in any other jurisdiction.
A sole proprietorship registration will stay in effect for a period of three to five years depending on the province or territory. The onus is on the sole proprietor to ensure his or her registration is renewed. The government will not remind you that your registration is going to expire. It is up to the sole proprietor to keep track of the expiry date and to renew the registration just before that date. In order to renew a registration you can follow the same procedure as you did for registering the sole proprietorship in the first place.
It is important that the government knows your current address. The government occasionally changes policies and sends out information to the address on file. If they do not have your correct address you may miss out on valuable information that could affect your business.
(Disclaimer: Some posts are user derived / user submitted / views found around the web. So some views expressed on this website do not necessarily reflect the views of the owners of BusinessTaxDeductions.net Copyright 2010,2011)