Did You Know: The Small Business Exemption
Posted on May 22nd, 2007
Here’s a useful tip for any Canadian small businesses out there. If you’re running a small business on the side, be it selling trinkets online or running a tutoring service, you do not need to register for GST if you take in less than $30,000 per year. Something that you have to bear in mind, though, is that this $30,000 cut off is for all monies received and not net income. So, if you’re in the business of selling something with relatively small margins, the $30,000 can sneak up on you rather easily, even if you only net a few thousand.
This isn’t to say that you shouldn’t register for GST, because there are certain advantages. For example, for any expenses that you accrue as part of running your business, you can receive a portion of the GST paid on this items/services back when you file your own GST. And getting money back from the government is always welcome, right?
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4 Comments
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I think an article should be posted here on how to register as a business and all that. Maybe have a “Getting Your Business Started” series.
I’d be very interested in this as well, getting an online business registered in Canada.
It’s actually a lot easier than most people think. There’s a form to be filled to register your business name and then another that gets you a business number (which is also used for GST)… and that’s about it.
Yes, but, where can you get these forms? Can they be done online? Do they cost money? When do you need to do it?