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Sole Proprietorships questions

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  • Apr 28th, 2006 9:15 am
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[OP]
Deal Addict
Mar 14, 2005
1489 posts
7 upvotes

Sole Proprietorships questions

How do I start start my own business (paper work wise)? What are the costs involved? Are there any tax benifits such as being able to claim a portion of my car payments/insurance/gas for transportation costs and maybe a portion of my mortage as a office expense or something? And are these things LEGAL and actually DO-ABLE?

Any kind of help/advice/links would be appreciated, thanks.
2 replies
Deal Addict
User avatar
Mar 29, 2006
1153 posts
27 upvotes
I don't think there is any specific paperwork unless you decide to incorporate yourself. Expenses relating to the office rent and car may be deductible but technically only the portion that is used for the purpose of work. However I would recommend getting an accountant so they can tell you what is feasible in your case, and how to get the supporting documentation in case there is an audit.
Deal Fanatic
Feb 1, 2006
9543 posts
689 upvotes
Muskoka
If you will, or don't mind, receiving payment for whatever service you're offering in your own name, then you don't need to do anything, just start operations. If you want a name, you'll have to register it, costs $60-70, in Ontario. You may also want to register for the GST if you will be buying goods that you pay tax on, and if you'll make over $30k/year, registering is mandatory. If you sell a product, you'll also need to deal with PST.

You can claim any expenses that you incur for your business, this includes the portion of expenses related to the part of your house used for an office, and the percentage of use of your vehicle. Home office expenses can not be used to create or increase a business loss.

All of this info is readily available in more detail at the CRA website.

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