Registering a business question?

[410440]

I have done some contracting for various people in the past and they just paid "cash".

I have an offer from a company right now for some contracting but they need invoices and receipts and what not, how would i go about starting or licensing a small business type deal? just to be registered with the govt. (Tax, etc.)


Im also not sure if i would need independent insurance or if they company im contracting will have that.

And when it comes to having a registered small business, what happens when it comes to writing off cell phones/vehicles, etc.?


any input would be great.

Thanks in advance

[dannie]

First thing you need to do is find out if you need to be an incorporation or a sole proprietor. If you need WCB, you will have to incorporate. Both types of registrations for businesses are done at the Registry. Once you get that done, then you can go to the government and register for your GST number etc.

[lint]

What type of contracting will you be doing? If IT, most companies don't have insurance for contractors, so you go through a company like SI as a flow through for insurance coverage. For deductions, mileage, pay structure, fiscal year etc, get yourself a good accountant. There are lots of options for how your first year is set up, so you want some good advice to take advantage of that.

[410440]

All it is would be mobile installation of things like GPS, and OBC (on board trip computers) on semi trucks.

so im not sure what exactly i need, would i need WCB?

[dannie]

In my opinion, I would be registering an incorporation. If you register a corporation and something happens with a GPS that you have installed and the person sues you; he can only go after what the company owns and not your personal stuff. An incorporation is a fair bit more work than a trade name, but for the liability aspect, I wouldn't register anything but an incorporation.

[The_Rural_Juror]

Originally posted by dannie
In my opinion, I would be registering an incorporation. If you register a corporation and something happens with a GPS that you have installed and the person sues you; he can only go after what the company owns and not your personal stuff. An incorporation is a fair bit more work than a trade name, but for the liability aspect, I wouldn't register anything but an incorporation.

"Registering an incorporation"? :confused:

[dannie]

Yeah.... you can register three types of businesses in Alberta. Trade name, partnership or incorporation. :dunno:

[lint]

You mean partnership or corporation. Incorporation is the act of creating a corporation. Incorporation isn't a noun.

[The_Rural_Juror]

Trade name is a type of business?


To the OP: Make sure you include "engineering" somewhere in your name. ;)

[410440]

whichever way it ends up going for the purpose of simply being able to issue an invoice and receipt, what would be the easiest/cheapest.

as i said in the original post, essentially im trying to just get a step ahead of "under the table".

[snoop101]

Incorporating cost me 190 bucks. Well worth it and it takes one day for them to do it.

[Rat Fink]

.

[410440]

Being that this is going to be a part time thing, ie: 1 day a week, maybe 3-600/ mnth. The company is offering to just cut a cheque and not worry about billing invoices, etc.


But then it would rest on myself when it came tax time, being that the income is going to be so little and there will be months that there is none, is it even worth registering a business?

[Rat Fink]

.

[mikestang]

as long as your cash flow is under 30,000- you dont need a GST number or charge gst.

WCB you'll need, every employer has WCB-there are few that don't have coverage, and no you don't need a corporation to have it. there are a few diff types of corprations aswell, its good to learn what they all are, I have a named llc (ltd.) company. instead of going for the numbered company and registering the trade name or DBA I went for the named llc that way I dont have to worry about infringement down the road since I love my company's name.

you can get a DBA at ama for $40. "Doing Business As" so Joe Smith doing business as "Contracts R Us" and you're legally entitled to represent yourself on paper as that-but you're liable if something hits the fan.

EDIT: i wrote a few paragraphs too much. didnt see rat finks post :D

I pay myself a minimal wage, take dividends past that and purchase whatever I can through the company. computer, vehicle shit, etc... If I buy a turbo setup for my truck - it's a write off. :D

for me... fuel, truck, tires, etc.. all writeoffs. I try to tie in shit like grocery shoppig into my work km. since its on the way im technially not using more than 1 KM to go out of my way to shop. keep a fuel log. sirusly.

DATE | REASON/DESTINATIONS | KM START | KM END

last year I wrote off 22,000 for my truck

[VWbloke]

Talk to an accountant. They'll steer you in the right direction. But from the sounds of it you don't really need to register as a business. Like someone previously mentioned, unless your sales exceed $30K / year you don't charge GST.

Just create a simple invoice template in Word and use that. And make sure to set aside money for income tax.