Starting a business

[thw_goalie]

So I want to start a business out of my house. I've read pretty much everything I can find and I'm still not sure if I need a Business License and a Home Occupation permit, or just a Home Occupation permit, or just a Business License.

The business will be based solely over the internet. My garage won't be used, I'll be using less than 30 metres of space in my house. I classify for the Home Occupation: Class 1 Permit, I just don't know what I need!

Could anyone maybe clarify which I would need?

[snowboard]

business registrations with the province. Gst number, workers comp number.

[adam c]

u only need gst if u make over 30k per year

[Kritafo]

you can still get a GST number if you wish, but it's not necessary until you reach the magic 30,000 number.

I am in the same boat, internet business. But you can get great deals on things and open a lot of door with a city business license.

[thw_goalie]

Do I need a home occupation permit? Or just a business license?

[thw_goalie]

Bump.

[Evolize]

I'm starting my business the same way, all you need is your business liscense and gst number. I'll be selling performance aftermarket and oem car parts this january and its all you need.

[Whitetiger]

:thumbsup: good luck with ur biz

[thw_goalie]

I got the business license... expensive stuff. Now I need to get a GST number. Unfortunately it won't let me sign up online.

[l8braker]

Originally posted by thw_goalie
I got the business license... expensive stuff. Now I need to get a GST number. Unfortunately it won't let me sign up online.

What was the cost the license?

I'm in the same position as you are, business starting the new year over the internet.... This could be an interesting thread :thumbsup:

[Lo)2enz0]

I was thinking about doing the same thing. looks to be a good thread in store for everyone

[tulit]

I recommend you still get a GST # (BN#). Even if you're making less then $50k (the limit is 50 not 30), if you have a GST number you can claim back GST on the things you buy for your business. This can add up to a lot. I beleive you can still signup by just calling the CCRA.

Techinically speaking you need your occupational permit, especially if you will be having regular deliveries to your place. It may only become a problem if your neighbours complain and you don't have one.

Another thing the occupational permit doesn't allow you to do is use your home address as your public operating address. You'll need to get yourself a PO box from the post office or from a place like Mail Boxes Etc for your customers to send you mail (if you need them to).

Business license is ~105/yr.

[thw_goalie]

The total cost for me was $148. The business license was $114 and the home occupation permit was $34.

[Z_Fan]

Originally posted by tulit
I recommend you still get a GST # (BN#). Even if you're making less then $50k (the limit is 50 not 30)

No. That's wrong. Well, not entirely - but let's clarify. This applies to Small Suppliers, which these ventures would be classified as.

The limit for what these folks are talking about is $30k in any quarter, or any four quarters in succession at which point GST registration becomes mandatory.

The $50k limit applies only to Public Service bodies, which these are not. These which we are speaking of will be Sole Proprietor's, Partnerships or Corporations. The $50k limit applies only to Charity, non-profits, municipalities, universities, college, school authorizes and hospital authorities)

If you need more information about the GST and all that it entails, go to this link.

http://www.cra-arc.gc.ca/E/pub/gp/rc4022/rc4022-06e.pdf

But the rest of your post is solid. I highly recommend getting a GST number even if it is not mandatory for your venture. Ultimately, it will be if your business takes-off, and there are many advantages of having a GST number which you would be missing out on if you don't get one.

[Lex350]

I also suggest you get a GST# because many other businesses will not do business with you unless you have one.

[thw_goalie]

I agree. To get accounts with manufacturer's they usually ask for a GST number.

[barbarian]

Originally posted by Kritafo
you can still get a GST number if you wish, but it's not necessary until you reach the magic 30,000 number.

I am in the same boat, internet business. But you can get great deals on things and open a lot of door with a city business license.
So how do you collect the GST if you are under $30000? Are you required to? If not, and you go over, do you suddenly owe GST on all $30000?

[izzoblitzo]

City Licencing... 268-5311. You can set it up over the phone if you're paying by Visa/MC.

You'll need a Home Occ if you're running a business, and plus a business licence only if you're in a catagory that's licensible.. such as if you're importing/exporting/selling stuff.. which could be a Distribution Manager...

But you could be operating a business, but all you do is offer consulatation.. but the City doesnt licence consultants, so a Home Occupation Permit is all you need.. as long as you follow by the rules of the Home Occupation, assuming it's the Class 1 (pretty much telephone and desk operation), it'll be something like $34, and lasts for the lifetime that you live at that home.

Annual renewals of licenses are something like $92 a year... A lot of people get the automotive dealer licences so they could get into car auctions and things.

[Chim]

Question about the GST number

I'll be pulling in over 30 from my biz this year, some people have just told me to wait until the gov't issues the number. If I don't get the number, what happens?

[thw_goalie]

Originally posted by Chim
Question about the GST number

I'll be pulling in over 30 from my biz this year, some people have just told me to wait until the gov't issues the number. If I don't get the number, what happens?
If your reporting period is monthly or quarterly, you have to file your GST/HST return and remit any amount owing no later than one month after the end of your reporting period.

If your reporting period is annual, you usually have to file your return and remit any amount owing no later than three months after the end of the fiscal year. If you have to pay quarterly instalments, they are due no later than one month after the last day of each fiscal quarter. See the next section for more information on instalment payments.

If you are an individual with business income for income tax purposes who is also an annual filer with a December 31 fiscal year-end, you have to file your return by June 15. However, any GST/HST remittance is due on April 30 and must be remitted by that date to avoid penalties and interest.

Taken from the Government website.