Comments on: How To Start a Business http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/ Investing and Personal Finance Mon, 15 Mar 2010 07:31:31 -0400 http://wordpress.org/?v=2.9.2 hourly 1 By: WoolyWoman http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/comment-page-1/#comment-2711 WoolyWoman Thu, 03 Jan 2008 22:00:30 +0000 http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/#comment-2711 Mr Cheap your enthusiasm is the best. I agree completely with your "You CAN do it!" message-it is rather (shockingly) easy at first, it is only as the business grows that you have to start getting in to more complex issues such as GST. I have learned a lot along the way simply by reading government websites, because OF COURSE they want people to start business, and provide them with the resources to do so. Mr Cheap your enthusiasm is the best. I agree completely with your “You CAN do it!” message-it is rather (shockingly) easy at first, it is only as the business grows that you have to start getting in to more complex issues such as GST. I have learned a lot along the way simply by reading government websites, because OF COURSE they want people to start business, and provide them with the resources to do so.

]]> By: moneygardener http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/comment-page-1/#comment-2700 moneygardener Thu, 03 Jan 2008 00:58:12 +0000 http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/#comment-2700 informative post cheap... informative post cheap…

]]> By: MillionDollarJourney http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/comment-page-1/#comment-2699 MillionDollarJourney Wed, 02 Jan 2008 22:38:33 +0000 http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/#comment-2699 TMW and Warren, so if a business collects GST, that means that the business can also claim GST on the business expenses like computers. After claiming the GST, can you depreciate the value of the item as you normally would? TMW and Warren, so if a business collects GST, that means that the business can also claim GST on the business expenses like computers. After claiming the GST, can you depreciate the value of the item as you normally would?

]]> By: Warren http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/comment-page-1/#comment-2698 Warren Wed, 02 Jan 2008 22:29:27 +0000 http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/#comment-2698 Don't forget that if you start collecting GST you also get refunds on GST paid for things you buy to keep your business going (hosting fees, etc.) I am involved in starting up a new business, and there are a few hoops to jump through, but I think it sounds more like a big deal at the beginning and will quickly fade to nothing when I look back on it. Then again, I'm also somebody who wants to do things by the book. I second the comment on making sure you leave some money to actually pay your tax bill. I made sure to do this for my rental income. I think a lot of people out there just collect the rent and don't declare or pay taxes. You don't want to be on CRA's bad side. Don’t forget that if you start collecting GST you also get refunds on GST paid for things you buy to keep your business going (hosting fees, etc.)

I am involved in starting up a new business, and there are a few hoops to jump through, but I think it sounds more like a big deal at the beginning and will quickly fade to nothing when I look back on it.

Then again, I’m also somebody who wants to do things by the book.

I second the comment on making sure you leave some money to actually pay your tax bill. I made sure to do this for my rental income. I think a lot of people out there just collect the rent and don’t declare or pay taxes. You don’t want to be on CRA’s bad side.

]]> By: ThickenMyWallet http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/comment-page-1/#comment-2697 ThickenMyWallet Wed, 02 Jan 2008 19:55:52 +0000 http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/#comment-2697 If your ad provider is not a resident Canadian person, you do NOT charge GST. GST is only applicable if revenues are being derived from Canadian persons (the legal term "persons" includes business, partnerships etc) and the service being provided is not exempt (advertising is not a GST exempt service). If you make over $30K, you must obtain a GST number and remit at least once a year. However, if you collect over $1500 in GST in the previous 4 quarters, you must remit quarterly. I suspect that most ad revenue is from non-Canadian sources but the business of blogging is paying GST on things like computer purchases etc. If this assumption is correct, most blogs would not collect more than $1500 in GST a year. If your ad provider is not a resident Canadian person, you do NOT charge GST. GST is only applicable if revenues are being derived from Canadian persons (the legal term “persons” includes business, partnerships etc) and the service being provided is not exempt (advertising is not a GST exempt service).

If you make over $30K, you must obtain a GST number and remit at least once a year. However, if you collect over $1500 in GST in the previous 4 quarters, you must remit quarterly.

I suspect that most ad revenue is from non-Canadian sources but the business of blogging is paying GST on things like computer purchases etc. If this assumption is correct, most blogs would not collect more than $1500 in GST a year.

]]> By: MillionDollarJourney http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/comment-page-1/#comment-2695 MillionDollarJourney Wed, 02 Jan 2008 19:43:09 +0000 http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/#comment-2695 Adding GST to ad sales really complicates things. Especially when it comes time to file. :) I'll have to double check with my accountant on the correct procedures. Thanks for the info! Adding GST to ad sales really complicates things. Especially when it comes time to file. :) I’ll have to double check with my accountant on the correct procedures.

Thanks for the info!

]]> By: Mr. Cheap http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/comment-page-1/#comment-2694 Mr. Cheap Wed, 02 Jan 2008 18:38:02 +0000 http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/#comment-2694 MDJ: I think you would. Providing advertising space is a service, so you'd have to charge taxes for it. there would be special rules if you were selling internationally (I don't think you'd have to charge foreign customers GST). You'd just invoice people you sold advertising space to and add the GST to their bill. Plonkee: Interesting that the UK complicates things. I think that's a mistake. MDJ: I think you would. Providing advertising space is a service, so you’d have to charge taxes for it. there would be special rules if you were selling internationally (I don’t think you’d have to charge foreign customers GST).

You’d just invoice people you sold advertising space to and add the GST to their bill.

Plonkee: Interesting that the UK complicates things. I think that’s a mistake.

]]> By: The Dividend Guy http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/comment-page-1/#comment-2692 The Dividend Guy Wed, 02 Jan 2008 16:33:23 +0000 http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/#comment-2692 It is that easy - I think most bloggers just find themselves in business once they start earning money fron Adsense etc. I think one thing that is important to do is set aside 10 - 20% of your earnings just to make sure you have enough to cover any tax liability you may have with the income from a Small business come tax time. The Dividend Guy It is that easy – I think most bloggers just find themselves in business once they start earning money fron Adsense etc.

I think one thing that is important to do is set aside 10 – 20% of your earnings just to make sure you have enough to cover any tax liability you may have with the income from a Small business come tax time.

The Dividend Guy

]]> By: FourPillars http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/comment-page-1/#comment-2691 FourPillars Wed, 02 Jan 2008 16:03:38 +0000 http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/#comment-2691 MDJ - <i>What about a blog that makes over $30k/yr?</i> Why do you want to know? :) Plonkee - sounds like the process in the UK is pretty simple. MDJ – What about a blog that makes over $30k/yr?

Why do you want to know? :)

Plonkee – sounds like the process in the UK is pretty simple.

]]> By: plonkee http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/comment-page-1/#comment-2688 plonkee Wed, 02 Jan 2008 12:33:50 +0000 http://www.four-pillars.ca/2008/01/02/how-to-start-a-business/#comment-2688 In the UK, you have to register as self-employed with HMRC. I think this is because if you don't have to pay tax, or your a medium or less earning employee, you don't need to fill in a tax return. So if you didn't declare self-employed they wouldn't send you a tax return and then you wouldn't be paying tax. According to HMRC, that would be a bad thing. Anyway, it took me about 5 minutes to register on the phone, and then I filled in a small earnings exemption form so that I don't have to pay National Insurance. Because I earn so little, filling in the self-employment part of the tax return looks to be a matter of stating my business income, expenses and net profit. In the UK, you have to register as self-employed with HMRC. I think this is because if you don’t have to pay tax, or your a medium or less earning employee, you don’t need to fill in a tax return.
So if you didn’t declare self-employed they wouldn’t send you a tax return and then you wouldn’t be paying tax. According to HMRC, that would be a bad thing.
Anyway, it took me about 5 minutes to register on the phone, and then I filled in a small earnings exemption form so that I don’t have to pay National Insurance. Because I earn so little, filling in the self-employment part of the tax return looks to be a matter of stating my business income, expenses and net profit.

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