Canadians: Business Setup and Taxes

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zach606

zach606

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Just wondering what other affiliate marketers in Canada are running as their business structure. Sole Proprietorship, Corporation, etc.

I've talked to a few accountants, but haven't found one that I feel totally confident with so far. So, in the meantime, I thought I'd ask and see how all you guys and girls have your businesses setup!

Any info on Canadian business setup and tax advice would be very appreciated! I'd like to know more so that I can ask some educated questions when I see the next accountant.

Thanks soooooo much!!!! :bowdown:

Oh, and I'm in British Columbia.
 


Sole proprietorship here, will be setting up corp later this year. You can start off this way and you simply report it as a home business when you do your taxes.

You will need to register for and start collecting GST from Canadian companies once you hit over $30k in worldwide "sales" as in total revenue not profits.

Some tips:

Keep all your business expense receipts and write that shit off. (duh)

You can write off a % of your rent/utilities if you are running your business from home (5-15%, don't overdo it). The office must not be a bedroom.

You can collect back the GST on pretty much all business expenses (once you are registered and start collecting.)

You don't tax any companies outside of Canada.

Put away about 25% of your profits for taxes. :repuke:

That's some random shit that I felt was of most importance...also hit up the CRA site: Canada Revenue Agency - Pretty loaded with info.

Get a good accountant and you're set.
 
zach606 said:
Just wondering what other affiliate marketers in Canada are running as their business structure. Sole Proprietorship, Corporation, etc.

I've talked to a few accountants, but haven't found one that I feel totally confident with so far. So, in the meantime, I thought I'd ask and see how all you guys and girls have your businesses setup!

Any info on Canadian business setup and tax advice would be very appreciated! I'd like to know more so that I can ask some educated questions when I see the next accountant.

Thanks soooooo much!!!! :bowdown:

Oh, and I'm in British Columbia.
Click to expand...

Here is a very helpful link full of small business information specifically for BC

Welcome to Small Business BC your business resource in British Columbia and Vancouver

I'm also from BC and that site has helped out a lot with learning how to properly run a business, dealing with your taxes, ect...

Also note that you only need to charge PST in Canada if you are selling tangible items, otherwise you don't have too.

Also mind if I ask which part of BC you are from? You can PM me if you don't feel like posting it.
 
I set up a corporation, keep as much money in the corporation as possible. Take a minimum out for your own income and you'll get solid tax benefits. The best part of the corporation is it's a seperate legal entity.
 
My accountant helped me make the corp jump by asking:

Were you happy with the money you took home last year? As in, do you need to make more money to live happier and better, or can you shelter the excess in your corporation and live the same way you did last year - which for me, was pretty good.

Of course having a corporation will give you lots of other benefits as well. But I think the above reason is why I eventually incorporated.

And in BC we're talking about 15% corp taxes versus 30%+ personal. The savings are huge if you choose to leave it in the corp.
 
Awesome, thanks so much for the great information so far!

Sounds like a corporation is the way to go. That is if you are making a good amount more than your living expenses each year. Don't want to get double taxed too much! Keep as much money in the corp as possible and only pay the lower tax rate.

The only thing that worries me about that, however, is if I decide to make a large purchase down the road (eg. real estate). I've heard you can take a loan out from your corporation in this type of situation. Anyone know anything about this?

m0rtal: So you do have to collect GST on commissions from all Canadian affiliate networks you work with? But not US or internationally based networks? This is something I tried to ask one account and they weren't sure.

Aequitas: I'm in on vancouver island, in Victoria! You?
 
zach606 said:
m0rtal: So you do have to collect GST on commissions from all Canadian affiliate networks you work with? But not US or internationally based networks? This is something I tried to ask one account and they weren't sure.
Click to expand...

Right on. You don't have to worry about it unless they are located in Canada and you've done 30k+ in revenue (though technically you can voluntarily start collecting before you've hit that mark but it is not a requirement). This can be over a year or once you've hit it in a calendar quarter.

But, the revenue is worldwide. So let's say you do $50k. $40k of that is with a US network and 10k with a Canadian. Since you've passed 30k in worldwide revenue you would have to charge GST on the $10k you did with the Canadian network.
 
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