Entrepreneurship & Small Business

How do I register a small business? Do I even need to?

  • Last Updated:
  • Feb 8th, 2020 5:05 am
[OP]
Deal Guru
Aug 14, 2007
10301 posts
1555 upvotes
Toronto

How do I register a small business? Do I even need to?

So I started doing video game console repairs (and will repair other electronics upon request) and have a website (.com for now) going. Most if not all business at the moment comes via FB marketplace and Kijiji ads but the site is just more for SEO and whatnot.

Since it's just myself and no one else and also done out of my home, do I need to register this as a business? I have an HST number already from doing uber on the side of working full time but have decided not to do it anymore as its really not worth it even with all the write offs I can do.

CRA said I can use this same number for my own at home business.

As for writing off equipment, I bought it all in December 2019, so I'm guessing I can't write the equipment off partially? Total price for everything was about $1000

Thanks for any advice.
8 replies
Deal Addict
Feb 22, 2007
1953 posts
256 upvotes
Toronto
You can register your business through this link.

https://www.ontario.ca/page/register-bu ... artnership

I believe the fee is $60. You'll get the business master license emailed to you. You can also use that license to open a business bank account

From what I've read. You only start charging HST if you hit 30K in sales in Canada and above per year. You also can claim taxes that you paid

I don't have much information regarding writing off stuff.

https://www.canada.ca/en/revenue-agency ... esses.html
https://www.canada.ca/en/revenue-agency ... rants.html
[OP]
Deal Guru
Aug 14, 2007
10301 posts
1555 upvotes
Toronto
realg123 wrote: You can register your business through this link.

https://www.ontario.ca/page/register-bu ... artnership

I believe the fee is $60. You'll get the business master license emailed to you. You can also use that license to open a business bank account

From what I've read. You only start charging HST if you hit 30K in sales in Canada and above per year. You also can claim taxes that you paid

I don't have much information regarding writing off stuff.

https://www.canada.ca/en/revenue-agency ... esses.html
https://www.canada.ca/en/revenue-agency ... rants.html
Thanks, will look into doing this very soon.
Sr. Member
Nov 6, 2015
745 posts
352 upvotes
Guelph, ON
You don't have to register a business if you are just working under your own name.
[OP]
Deal Guru
Aug 14, 2007
10301 posts
1555 upvotes
Toronto
JoeBlack23 wrote: You don't have to register a business if you are just working under your own name.
So if I have no employees, just me I don't need to register? I'm guessing I'll still have to claim taxes since I work full time as well?
Deal Addict
User avatar
Aug 12, 2007
4339 posts
701 upvotes
Waterloo
XtremeModder wrote: So if I have no employees, just me I don't need to register? I'm guessing I'll still have to claim taxes since I work full time as well?
you would claim additional income as "self employed" and then you can also claim deductions and expenses for the business such as the equipment.

What he is referring to is the HST you pay on parts and other expenses. You can claim those back( If you hit the 30K and start charging HST ).
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Pay it forward.
Sr. Member
Nov 6, 2015
745 posts
352 upvotes
Guelph, ON
XtremeModder wrote: So if I have no employees, just me I don't need to register? I'm guessing I'll still have to claim taxes since I work full time as well?
You have to pay tax on income, whether it's "full time" work or as a sole proprietor.
Member
Nov 20, 2010
268 posts
145 upvotes
Halifax
If you're making money, the CRA wants to know and you'll add the income from your side gig to your regular daytime job income ; to offset that, register a business name and claim expenses such as:
business name registration fees, domain name registration, hosting, advertising, tools, supplies, internet connection, your phone and phone bill, home office space, heat, electricity, etc. The expenses are deducted from the business income - so it's not 100% profit margins.

Also, if you register a business name, you can advertise with the business name rather than just your name - it adds legitimacy and you never know what'll happen!
Deal Addict
User avatar
Aug 15, 2015
1568 posts
194 upvotes
Markham, ON
Register when you think is a good time to register.

Keep good records of your number so you can evaluate your business properly.

You might want another hst number for this new venture. Might keep things more clear...

Again, the more business you enter into, the more have to gain or lose.

There is only so much time in a day to idle, rest, work, eat and look around.

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