I need some help please. I am going to be working from home at my own business. I essently work for another company and they pay me a percentage of the revenue that i get for them. They do not with hold taxes so I am liable for the taxes and stuff. I have no idea what i am doing except i will follow this venture. Any ideas ?
Small business help ???
- Thread starter buckwheat
- Start date
85 percent of all small business's fail within the first 5 years.Most people going into business have an idea.This sounds like someone is making you an independant contractor for their benefit,fishy comes to mind?buckwheat said:
imop
Get an accountant you can trust. Ask him if having a .INC is the way to go. In other words a numbered company. Or you can name it if you like.
Do your books monthly. Don't fall behind. It's just a pain in the ass to fix later.
If you do a numbered company ( .INC ), you'll be subject to GST, PST, personal etc... Stay on top of your taxes owing. They murder you with late payment and interest fee's.
Guy
Do your books monthly. Don't fall behind. It's just a pain in the ass to fix later.
If you do a numbered company ( .INC ), you'll be subject to GST, PST, personal etc... Stay on top of your taxes owing. They murder you with late payment and interest fee's.
Guy
books
Pick up some business guides or download some summaries online... there are tons of resourses out there..
Incorporation is not hard.. get an accountant.. get him/her to do it for you.. should run around a grand.. and all you have to do is sign the paperwork..
If not.. go down to city hall and register for $60.. then watch how much you bring in.. the second you pass 30K you must get a gst.. or you are in some trouble.. again.. get your accountant to do it or call them up..
don't forget to pay yourself a salary and take deductions.. you don't want to get caught in the end..
good luck.. it sounds exciting.. ohh.. and don't forget to get out of your house.. take walks.. visit with friends.. it is really easy to work from home and forget that you actually have a life..
Pick up some business guides or download some summaries online... there are tons of resourses out there..
Incorporation is not hard.. get an accountant.. get him/her to do it for you.. should run around a grand.. and all you have to do is sign the paperwork..
If not.. go down to city hall and register for $60.. then watch how much you bring in.. the second you pass 30K you must get a gst.. or you are in some trouble.. again.. get your accountant to do it or call them up..
don't forget to pay yourself a salary and take deductions.. you don't want to get caught in the end..
good luck.. it sounds exciting.. ohh.. and don't forget to get out of your house.. take walks.. visit with friends.. it is really easy to work from home and forget that you actually have a life..
If you are in Canada
Consider becoming a member of the Canadian Federation of Independent Business.
Info at www.cfib.ca
Consider becoming a member of the Canadian Federation of Independent Business.
Info at www.cfib.ca
Buckwheat
Because many large corporations have downsized and laid off their workers only to have them return as subcontractors, you have fallen into a predicament that is now quite common. There are a number of accounting firms that have new small business kits that have all the details inside about getting business numbers, PST and WSIB numbers. These kits also indicate when one should incorporate and answer most, if not all of the questions that one would have about opening up a new small business. Take a look at the 2020Canada.com website for one of these firms.
Because many large corporations have downsized and laid off their workers only to have them return as subcontractors, you have fallen into a predicament that is now quite common. There are a number of accounting firms that have new small business kits that have all the details inside about getting business numbers, PST and WSIB numbers. These kits also indicate when one should incorporate and answer most, if not all of the questions that one would have about opening up a new small business. Take a look at the 2020Canada.com website for one of these firms.
Besides getting an accountant and setting an initial meeting, get a good bookkeeper to come every month. He or she will be able to keep track of expenses, including gas. If you are working from home you will be able to deduct a certain portion of your computer, power, mortgage interest (or rent), phone, internet, etc... as business expenses.
As another poster said, if you make over $30,000 a year in revenue, you must register for GST - that is, you must collect GST on all your sales. However, you are also able to get a GST refund on virtually all of your business expenses as well. So if as another poster said, you pay $300/hr +$21 GST to meet with an accountant, if you are registered for GST, you will get your $21 back from the federal government. An accountant and bookkeeper can help with this.
Finally, check-out Canada Revenue Agency's website. It has lots of info for small business owners at www.cra.gc.ca
Oh, you may want to consult with a lawyer as well. I don't know what arrangement you have, or what contracts you have, but speaking with a lawyer is always a good thing. You may wish, for example to enter into a contract with the person you are working for, or for that matter, the person you are working for may enter into a contract with you. Get it checked-out.
As another poster said, if you make over $30,000 a year in revenue, you must register for GST - that is, you must collect GST on all your sales. However, you are also able to get a GST refund on virtually all of your business expenses as well. So if as another poster said, you pay $300/hr +$21 GST to meet with an accountant, if you are registered for GST, you will get your $21 back from the federal government. An accountant and bookkeeper can help with this.
Finally, check-out Canada Revenue Agency's website. It has lots of info for small business owners at www.cra.gc.ca
Oh, you may want to consult with a lawyer as well. I don't know what arrangement you have, or what contracts you have, but speaking with a lawyer is always a good thing. You may wish, for example to enter into a contract with the person you are working for, or for that matter, the person you are working for may enter into a contract with you. Get it checked-out.
It's always a good idea to have terms (contract) of your own. Make sure you clearly spell out the responsibilities of both parties (i.e. your customer and you). Look into liability insurance, especially if you are in a professional business, in which case you may want to consider Errors & Ommissions insurance.
Don't forget about Worker's Compensation Insurance. As a sole proprietor, you don't need it but can get optional insurance to be covered anyway. In some circumstances, your customer may require you have it regardless if you're a sole proprietor or not. www.wsib.com
I agree with a previous post, if you don't need to incorporate, don't bother. Just because you're incorporated doesn't mean you will be safe from all lawsuits and financial liabilities. For example, a new company will have trouble borrowing money so you will probably have to guarantee it with your personal finances (possibly sign your assets such as a house).
A good contract (terms) and appropriate insurance will go along way to offering some protection. Don't even bother "thinking" about GST, just get a number and be done with it. It's easy and not very time consuming. Depending on what you're doing, you may also need a RST (Retail Sale Tax i.e. PST) number as well. If you are reselling this number exempts you from paying the PST.
If your good with numbers and computers, a software package like QuickBooks will help keep your books in order. Good luck! And don't forget to enjoy the freedom.
Don't forget about Worker's Compensation Insurance. As a sole proprietor, you don't need it but can get optional insurance to be covered anyway. In some circumstances, your customer may require you have it regardless if you're a sole proprietor or not. www.wsib.com
I agree with a previous post, if you don't need to incorporate, don't bother. Just because you're incorporated doesn't mean you will be safe from all lawsuits and financial liabilities. For example, a new company will have trouble borrowing money so you will probably have to guarantee it with your personal finances (possibly sign your assets such as a house).
A good contract (terms) and appropriate insurance will go along way to offering some protection. Don't even bother "thinking" about GST, just get a number and be done with it. It's easy and not very time consuming. Depending on what you're doing, you may also need a RST (Retail Sale Tax i.e. PST) number as well. If you are reselling this number exempts you from paying the PST.
If your good with numbers and computers, a software package like QuickBooks will help keep your books in order. Good luck! And don't forget to enjoy the freedom.
