Quantcast
Resources to learn about starting a small business - Beyond.ca - Car Forums
Results 1 to 18 of 18

Thread: Resources to learn about starting a small business

  1. #1
    Join Date
    Mar 2010
    Location
    Calgary
    My Ride
    Ioniq 5
    Posts
    1,792
    Rep Power
    46

    Default Resources to learn about starting a small business

    Wondering if anyone can point me to some reading material. I started selling things online through Etsy and want to figure out how to do things properly as its going to be my sole income for the next while. Do I just go to an accountant and start from there or is it better to learn what I can first so I'm better prepared and don't pay for as much of their time?

    I don't have any in person dealings / invoicing or any other employees, its strictly buy material, build things, sell on Etsy.

    I'm assuming so far:
    - Register sole proprietorship
    - Open separate bank account
    - Set up quickbooks to track expenses / deductions
    - Commercial insurance
    - Register gst number

  2. #2
    Join Date
    Jan 2008
    Location
    Upstairs
    My Ride
    Natural Gas.
    Posts
    13,332
    Rep Power
    100

    Default

    You may not need a separate bank account or insurance for a sole proprietary company.

    And Excel or google sheets is more than sufficient for accounting if you didn't want to buy QuickBooks.

    Also not really any need for an accountant to set anything up for a sole prop as far as I know.
    Last edited by ExtraSlow; 03-16-2018 at 06:23 PM.
    Quote Originally Posted by killramos View Post
    This quote is hidden because you are ignoring this member. Show Quote
    You realize you are talking to the guy who made his own furniture out of salad bowls right?

  3. #3
    Thaco's Avatar
    Thaco is offline sucks off little boys (ya, don't fuck with rage2 bitch!!!)
    Join Date
    Oct 2004
    Location
    Calgary
    My Ride
    Rage2
    Posts
    3,868
    Rep Power
    29

    Default

    all you need for sole proprietor is to register your trade name... i just did this, cost me $45 at the registery, all income is just claimed toward your personal income tax for the year, you dont have to register for or collect GST unless you sell more than 30k over 4 consecutive quarters.

    as mentioned above, i just use a spreadsheet for tracking my expenses, then you can likely pull a sales report form your platform every month or quarter or however you want to manage it.
    User title molested by Rage2.

    Quote Originally Posted by rage2 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    It's not the size that matters, it's the taste it leaves in your mouth.

    Quote Originally Posted by JRSC00LUDE
    This quote is hidden because you are ignoring this member. Show Quote
    I say stupid shit all the time.
    ^^ Fact Checked


    Quote Originally Posted by Misterman View Post
    This quote is hidden because you are ignoring this member. Show Quote
    No logic, thought, input, etc from cult member...

  4. #4
    Join Date
    Mar 2010
    Location
    Calgary
    My Ride
    Ioniq 5
    Posts
    1,792
    Rep Power
    46

    Default

    Quote Originally Posted by Thaco View Post
    This quote is hidden because you are ignoring this member. Show Quote
    all you need for sole proprietor is to register your trade name... i just did this, cost me $45 at the registery, all income is just claimed toward your personal income tax for the year, you dont have to register for or collect GST unless you sell more than 30k over 4 consecutive quarters.

    as mentioned above, i just use a spreadsheet for tracking my expenses, then you can likely pull a sales report form your platform every month or quarter or however you want to manage it.
    How do I figure out how to actually do my income taxes though? Because I'll have a lot of deductions (material / marketing / random service fees / blue cross / etc). Also I'm assuming I still have to pay some kind of CPP?

    Unfortunately the GST # is a must, I started selling things in Jan and will pass 30k this quarter alone which is why I need to also figure out how to deduct as much as I legitimately can.

  5. #5
    Thaco's Avatar
    Thaco is offline sucks off little boys (ya, don't fuck with rage2 bitch!!!)
    Join Date
    Oct 2004
    Location
    Calgary
    My Ride
    Rage2
    Posts
    3,868
    Rep Power
    29

    Default

    Quote Originally Posted by pheoxs View Post
    This quote is hidden because you are ignoring this member. Show Quote
    How do I figure out how to actually do my income taxes though? Because I'll have a lot of deductions (material / marketing / random service fees / blue cross / etc). Also I'm assuming I still have to pay some kind of CPP?

    Unfortunately the GST # is a must, I started selling things in Jan and will pass 30k this quarter alone which is why I need to also figure out how to deduct as much as I legitimately can.
    oh wow, nice work, frm the best of my knowledge its just, keep track of everything and claim any profits as income... sounds like you might be deeper in than me though so i am sure a tax pro would be beneficial.
    User title molested by Rage2.

    Quote Originally Posted by rage2 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    It's not the size that matters, it's the taste it leaves in your mouth.

    Quote Originally Posted by JRSC00LUDE
    This quote is hidden because you are ignoring this member. Show Quote
    I say stupid shit all the time.
    ^^ Fact Checked


    Quote Originally Posted by Misterman View Post
    This quote is hidden because you are ignoring this member. Show Quote
    No logic, thought, input, etc from cult member...

  6. #6
    Join Date
    Jan 2008
    Location
    Upstairs
    My Ride
    Natural Gas.
    Posts
    13,332
    Rep Power
    100

    Default

    If you are making real money, and if you have sales of 30k per quarter I'd say you are, then incorporating has a number of benefits. Biggest one is deciding when you as a person get paid. So if you make 100k this year but plan on taking six months off next year, you can hold that money in the corporation until next year and have lower personal tax each year.

    Also, if you have a lot of sales/expenses/receipts, it can be worthwhile to get a bookkeeper to keep it all straight.

    Your business is a lot larger than mine. Congrats.
    Quote Originally Posted by killramos View Post
    This quote is hidden because you are ignoring this member. Show Quote
    You realize you are talking to the guy who made his own furniture out of salad bowls right?

  7. #7
    Join Date
    Oct 2007
    Location
    YEG
    My Ride
    Lotus and a Honda.
    Posts
    359
    Rep Power
    25

    Default

    Find a good accountant. We've been using QuickBooks for the last year, $9.99 a month and couldn't imagine not having it.

    And is it 30k quarterly or per year? Sheesh when you call into CRA they are a bunch of clueless clowns. I've been misinformed on this question so much I still have no idea what the answer is.

  8. #8
    Join Date
    Oct 2009
    Location
    Unknown
    Posts
    1,157
    Rep Power
    0

    Default

    It's quarterly.

  9. #9
    Thaco's Avatar
    Thaco is offline sucks off little boys (ya, don't fuck with rage2 bitch!!!)
    Join Date
    Oct 2004
    Location
    Calgary
    My Ride
    Rage2
    Posts
    3,868
    Rep Power
    29

    Default

    Quote Originally Posted by sikid111 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Find a good accountant. We've been using QuickBooks for the last year, $9.99 a month and couldn't imagine not having it.

    And is it 30k quarterly or per year? Sheesh when you call into CRA they are a bunch of clueless clowns. I've been misinformed on this question so much I still have no idea what the answer is.
    gst requirement is 30k per year, but not calendar year, 4 consecutive quarters.
    User title molested by Rage2.

    Quote Originally Posted by rage2 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    It's not the size that matters, it's the taste it leaves in your mouth.

    Quote Originally Posted by JRSC00LUDE
    This quote is hidden because you are ignoring this member. Show Quote
    I say stupid shit all the time.
    ^^ Fact Checked


    Quote Originally Posted by Misterman View Post
    This quote is hidden because you are ignoring this member. Show Quote
    No logic, thought, input, etc from cult member...

  10. #10
    Join Date
    Oct 2007
    Location
    YEG
    My Ride
    Lotus and a Honda.
    Posts
    359
    Rep Power
    25

    Default

    Quote Originally Posted by Thaco View Post
    This quote is hidden because you are ignoring this member. Show Quote
    gst requirement is 30k per year, but not calendar year, 4 consecutive quarters.
    Mkay what? So 30k or 120k per year?

    We were under the impression it's 30k per year.

  11. #11
    Join Date
    Apr 2004
    Location
    Calgary
    Posts
    2,093
    Rep Power
    43

    Default

    30k over 4 consecutive quarters, not 30k in a calendar year (Jan 1-dec 31)

  12. #12
    Join Date
    Sep 2002
    Location
    BoostLand
    My Ride
    something green
    Posts
    1,931
    Rep Power
    28

    Default

    Quote Originally Posted by pheoxs View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Wondering if anyone can point me to some reading material. I started selling things online through Etsy and want to figure out how to do things properly as its going to be my sole income for the next while. Do I just go to an accountant and start from there or is it better to learn what I can first so I'm better prepared and don't pay for as much of their time?

    I don't have any in person dealings / invoicing or any other employees, its strictly buy material, build things, sell on Etsy.

    I'm assuming so far:
    - Register sole proprietorship
    - Open separate bank account
    - Set up quickbooks to track expenses / deductions
    - Commercial insurance
    - Register get number
    What kind of liability could you encounter if something went wrong with the things you plan on building and selling?
    Too loud for Aspen

  13. #13
    Thaco's Avatar
    Thaco is offline sucks off little boys (ya, don't fuck with rage2 bitch!!!)
    Join Date
    Oct 2004
    Location
    Calgary
    My Ride
    Rage2
    Posts
    3,868
    Rep Power
    29

    Default

    Quote Originally Posted by sikid111 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Mkay what? So 30k or 120k per year?

    We were under the impression it's 30k per year.
    30k per rolling year, assessed each quarter if you didntnt make 30k from q1-q4 but then you did make 30k from q3-q2 of the next year, then q2 of the next year you'd have to apply for and start dealing with GST
    User title molested by Rage2.

    Quote Originally Posted by rage2 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    It's not the size that matters, it's the taste it leaves in your mouth.

    Quote Originally Posted by JRSC00LUDE
    This quote is hidden because you are ignoring this member. Show Quote
    I say stupid shit all the time.
    ^^ Fact Checked


    Quote Originally Posted by Misterman View Post
    This quote is hidden because you are ignoring this member. Show Quote
    No logic, thought, input, etc from cult member...

  14. #14
    Join Date
    Jan 2008
    Location
    Upstairs
    My Ride
    Natural Gas.
    Posts
    13,332
    Rep Power
    100

    Default

    Gst isn't that big of a hassle anyway and it allows you to deduct gst from your expenses so there is a benefit.

    My company is getting a big $17 check back from CRA for my gst expenses. Fuck yeah.
    Quote Originally Posted by killramos View Post
    This quote is hidden because you are ignoring this member. Show Quote
    You realize you are talking to the guy who made his own furniture out of salad bowls right?

  15. #15
    Join Date
    Oct 2007
    Location
    YEG
    My Ride
    Lotus and a Honda.
    Posts
    359
    Rep Power
    25

    Default

    Quote Originally Posted by Thaco View Post
    This quote is hidden because you are ignoring this member. Show Quote
    30k per rolling year, assessed each quarter if you didntnt make 30k from q1-q4 but then you did make 30k from q3-q2 of the next year, then q2 of the next year you'd have to apply for and start dealing with GST
    Thanks for the clarification! Like I said we've called I'm numerous times and have gotten different answers!

  16. #16
    Thaco's Avatar
    Thaco is offline sucks off little boys (ya, don't fuck with rage2 bitch!!!)
    Join Date
    Oct 2004
    Location
    Calgary
    My Ride
    Rage2
    Posts
    3,868
    Rep Power
    29

    Default

    Quote Originally Posted by sikid111 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    Thanks for the clarification! Like I said we've called I'm numerous times and have gotten different answers!
    https://www.canada.ca/en/revenue-age...ts.html#H1_108

    thats where i got my info, assuming i am interpreting it correctly. i think they intentionally try to mkae it confusng, i dont know why they need to say
    is $30,000 or less in any single calendar quarter and in the last four consecutive calendar quarters;
    clearly if your revenue is more than 30k in the last quarter its more than 30k in the last 4 consecutive quarters

    Name:  Capture.jpg
Views: 158
Size:  139.5 KB
    Last edited by Thaco; 03-17-2018 at 12:03 PM.
    User title molested by Rage2.

    Quote Originally Posted by rage2 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    It's not the size that matters, it's the taste it leaves in your mouth.

    Quote Originally Posted by JRSC00LUDE
    This quote is hidden because you are ignoring this member. Show Quote
    I say stupid shit all the time.
    ^^ Fact Checked


    Quote Originally Posted by Misterman View Post
    This quote is hidden because you are ignoring this member. Show Quote
    No logic, thought, input, etc from cult member...

  17. #17
    Join Date
    Oct 2005
    Location
    Red Deer, Alberta
    My Ride
    1995 WRX STi
    Posts
    1,560
    Rep Power
    0

    Default

    For accounting, I currently use WaveApps, which is free and online.

    I like it because I also use it to do invoicing. Maybe not a problem since Etsy takes care of that sort of stuff for you. Fuck excel, for the love of christ I know you are all engineers and shit but seriously, just get a proper program.

    I would highly suggest taking your taxes to a professional come tax time, but you really don't need an accountant for what you are doing. At least for the first go around so you can see what they did for you.

    As for sole prop vs corporation... From a financial perfect world standpoint, LLC makes sense once you start making more money.

    However, the expenses of just operating go up drastically when you are just around the threshold. And as the title LLC implies, unless you are worried about liability issues, the hassle may not be worth it.

    My business is still a sole prop. Because of this, it was much easier (and higher risk on my part) to get funding/loans as they are tied to me personally. All things to consider depending on how serious you are. Eventually I will go LLC, but paying out the ass for tax returns, insurance requirements, etc etc isn't worth it right now.

    If the business really takes off, there is nothing stopping you from going LLC from a sole prop. The other way around is not really a thing.

    So in short, if you are testing the waters/getting stuff figured out, I'd suggest sole prop as startup/sunk costs are a lot lower.

    In the long run, if you have a successful business, the extra money wasted won't matter, but in the short term, going sole prop allows you to focus more on dealing with the damn business.

    However, all of this assumes you are doing something with low liability/risk. If you are selling products that have high risk/liability issues surrounding them, go LLC full stop.

  18. #18
    Join Date
    Mar 2010
    Location
    Calgary
    My Ride
    Ioniq 5
    Posts
    1,792
    Rep Power
    46

    Default

    Quote Originally Posted by HiTempguy1 View Post
    This quote is hidden because you are ignoring this member. Show Quote
    For accounting, I currently use WaveApps, which is free and online.

    I like it because I also use it to do invoicing. Maybe not a problem since Etsy takes care of that sort of stuff for you. Fuck excel, for the love of christ I know you are all engineers and shit but seriously, just get a proper program.

    I would highly suggest taking your taxes to a professional come tax time, but you really don't need an accountant for what you are doing. At least for the first go around so you can see what they did for you.

    As for sole prop vs corporation... From a financial perfect world standpoint, LLC makes sense once you start making more money.

    However, the expenses of just operating go up drastically when you are just around the threshold. And as the title LLC implies, unless you are worried about liability issues, the hassle may not be worth it.

    My business is still a sole prop. Because of this, it was much easier (and higher risk on my part) to get funding/loans as they are tied to me personally. All things to consider depending on how serious you are. Eventually I will go LLC, but paying out the ass for tax returns, insurance requirements, etc etc isn't worth it right now.

    If the business really takes off, there is nothing stopping you from going LLC from a sole prop. The other way around is not really a thing.

    So in short, if you are testing the waters/getting stuff figured out, I'd suggest sole prop as startup/sunk costs are a lot lower.

    In the long run, if you have a successful business, the extra money wasted won't matter, but in the short term, going sole prop allows you to focus more on dealing with the damn business.

    However, all of this assumes you are doing something with low liability/risk. If you are selling products that have high risk/liability issues surrounding them, go LLC full stop.
    Thanks, that makes sense. I'll check out that app as well.

Similar Threads

  1. Starting a small side business... HELP!

    By dj_patm in forum Careers
    Replies: 13
    Latest Threads: 06-03-2017, 04:42 PM
  2. Starting a small business...

    By TimG in forum Careers
    Replies: 22
    Latest Threads: 10-16-2013, 10:05 PM
  3. starting small business

    By Deucers in forum Real Estate / Finance
    Replies: 11
    Latest Threads: 10-06-2008, 12:03 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •