๐๐ฆ๐๐ฅ๐ฅ ๐๐ฎ๐ฌ๐ข๐ง๐๐ฌ๐ฌ ๐๐๐ฌ๐ข๐๐ฌ
During these last few months, weโve noticed that some of our clients have been looking into alternative business opportunities or side hustles as we like to call them.
Iโve decided to start a ๐๐ฎ๐ข๐ญ๐ญ ๐ฃ๐ถ๐ด๐ช๐ฏ๐ฆ๐ด๐ด ๐๐ฏ๐ง๐ฐ ๐๐ฆ๐ณ๐ช๐ฆ๐ด to help you with the boring, (hopefully not too boring) but necessary info that you should know if you are starting yours. It will make things a lot easier down the road if you are aware of all the things at the beginning.
Letโs start with some basic knowledge on the types of business you may choose to operate.
๐๐จ๐ฅ๐ ๐ฉ๐ซ๐จ๐ฉ๐ซ๐ข๐๐ญ๐จ๐ซ๐ฌ๐ก๐ข๐ฉ โ a business that you and you alone own, itโs your baby and everything belongs to you. Another word for this is self-employed. You make all the decisions, make all the money and assume all the risk. You pay the income tax on all the profits and include this on your personal tax return. If you have outstanding debts, creditors can come after your personal assets.
Your business can be set up in your name, or you can operate under a business name. If you choose to use a business name, then you should set up a bank account in that name and you may also want to register the name and get a business number. You will need a business number if you have a payroll or need to collect GST/HST.
You will need to pay tax on any income that your business has earned and you may have to make Canada Pension Plan (CPP) on that income.
At tax time you will need to file a T1 tax return and a T2125 form which is a statement of business or professional activities.
Check back next week for part 2 of our ๐๐ฎ๐ข๐ญ๐ญ ๐ฃ๐ถ๐ด๐ช๐ฏ๐ฆ๐ด๐ด ๐๐ฏ๐ง๐ฐ ๐๐ฆ๐ณ๐ช๐ฆ๐ด!
Jodi