Freelancing full time & taxes?

[coupesx]

I've recently launched an online business that is purely freelance based work. Well, I do actually have one company that gives me steady work, but that's the exception.

Anyways, I am not expecting to make much this year since I started quite late. However, next year I plan to make a full time income off of this and I would like to get some information regarding tax laws for people who work from home freelancing.

I mean, I know the tax brackets are the same no matter what you do. But do I need to get a GST number? It's for website design if that makes a difference.

Also, in terms of keeping records, is it best just to keep the invoice/estimate and the receipt of payment for each client? Or do I need something more than this?

Thanks.

[busdepot]

If you make more than $30,000 off it, you need to register for GST. Makes no difference what industry you're in.

You should keep track of all your income and expenses for this as it is essentially a business, no different than if you were an incorporated company. When you prepare your tax return, you prepare you income statement on the T2125 form and you record all your income and all your related expenses on there.

Keep your records any way you feel appropriate, but a good rule of thumb is keep enough documentation so that you would be able to prove all your income and all your expenses if questioned on it. Keep all your invoices, receipts and copies of cheques received. Set up a separate bank account for your business so that it's easier to keep track of your revenues and expenses and they aren't mixed in with personal stuff.

Might also be worth while if you're going to making a full time income to invest in a copy of Quickbooks or Simply Accounting to help you out with the bookkeeping part of your business.