Register for home based business Ontario?

[dusangerald]

Hello There,

I am planning on uping my sales, and have already purchased items for sale, however I am stumped by the legality of it all. Ebay allows you to sell things, however they never ask for you to prove you are a registered seller. Now that anyone can simply get the 100 item selling limit, which for one month makes sense if someone is selling things around the home, but month after month...etc, obviously these people are purchasing items for sale.

So here is my question, how do you go abouts registering for a small business/home based business in Ontario, to properly collect taxes....etc. I need advice from someone who has done it. I know there is Service Ontario website, but that only mentions registering a name, not how to legally register as a home based business.

Also has anyone had problems with zoning bylaws in their town, meaning they couldn't do business from their home. I live in a "protected" area; Oak Ridges Moraine, and am worried about these laws, even though I am only selling coins, cards, and stamp. These items are tiny packages, and don't produce garbage to send out; only recycling.

I know this seems like a blub of nonesense, but I actually am very skilled at searching for information online, and have not found ANY CLEAR articles or explanations as to how, I as an Ebay Seller, can register to do around $500 in sales a month(I want to do this while I am at school so it will be around 4 years meaning I should register).

I need information for Ontario, and Peel Region specifically, I live in Caledon.  

What I know so far is:

You register for a search on your desired business name, and to register that name. As well you can register for HST/GST, and WSIB(Don't need that), and Employee information(don't need that). I plan to sell on my own, from my home, and solely on Ebay.

There is also a master business registery.

What I need to know is:

How do I get registered and get the ACTUAL LICENSE to sell. I know how to get my name done, but have found nothing to actually become legal; I assume having a business name doesn't mean you can LEGALLY sell items. I know that coins, cards and stamps have no official licensing system, and that anyone can become a pro grader(though it is better to be registered with businesses that grade, or associations so that you seem legit).

I realize problem with counterfeits...etc, know how to properly identify fake cards, and can decently grade coins. Problem with cards is there is no straight forward way to get a license other than to actually become a grader for one of the major companies that do so.

I have read a lot of information about getting loans, and business plans ready. I did not think you needed any of these to start a home based business, should the costs not only be registery? I do not need a loan, I have tons of products to sell, and have an already payed for space to do it on; everything is online. 

As well, I have been buying and requesting things to buy on Kijiji...etc and sometimes Ebay. If I buy something from the US on Ebay, for resale(I know people say arbitrage is not possible on Ebay, but it is, you just need to be skilled at searching, as well it is possible if you only are looking to make 20-30% profit). Would I have to register for Import/Exports, as well.

THIS INFO IS NEEDED SO ANY IS MUCH APPREACIATED. I though I mind as well Ask on Ebay from actual registered Ontario ebay sellers.

I have the money to do what I think is needed to be done which is around $400, but why do so many articles online mention getting a loan, and having a thorough business plan. Meanwhile Service Ontario website makes it seem unbelievably easy to register. Getting mixed messages.

[femmefan1946 · Accepted solution]

Ontario does not offer a license to sell.

You can register to remit the HST with Service Ontario.
Although this is only required if you are grossing $30,000 or more, many smaller businesses register anyway, for the tax credits from exports.

Business licenses are handled by your city. Phone your City Hall (or your alderman) for advice on this. Note that your city taxes and your garbage pickup (!) may be affected by being registered as a business.

Our business tax runs about $100 a day and we have to arrange for private contractors to pickup our trash. Ottawa does not provide municipal collection for businesses.

And don't forget your insurance company. Your household insurance may be compromised if you are running a business from your home.

While it might be useful to pay for a consultation with an accountant who is familiar with home businesses and online (export) sales, for $500 monthly gross, or even net,  I doubt it is economical.

It's  "de minimus" - the law does not concern itself with trifles.

[femmefan1946 · Accepted solution]

I assume having a business name doesn't mean you can LEGALLY sell items.

If you own it, you can sell it. You don't need a license to sell anything.

Business licenses deal with the "attractive nuisance" part of being a business, like increased traffic and garbage.

A registered business name just confirms your ownership of that name. You can't open a business called Tim Horton's SportsCards" for example, because the name "Tim Horton" is registered. But you probably could open a "Timmie's SportsCards" with or without registering it. If someone else then opened a business called "Timmie's Cards" and registered that name, he could try to have you stop using the Timmie's SportsCards name, even if you had used it for years.

I know that coins, cards and stamps have no official licensing system, and that anyone can become a pro grader 

Yep. Make an official looking website and nice looking certificates and start building your reputation. No previous training needed.

I realize problem with counterfeits...etc, know how to properly identify fake cards, and can decently grade coins. Problem with cards is there is no straight forward way to get a license other than to actually become a grader for one of the major companies that do so.

There is no such license. It's all reputation, smoke and mirrors. And any training is pretty ad hoc. he big companies don't have licenses either.

We've been training (stamp ) graders and describers for a couple of decades. Some earn 6 figure salaries, others just over minimum wage, based on the quality of their work as perceived by the employers.

[dusangerald]

^

Thank you very much for the advice.

I thought it was a lot simpler, but I tend to complicate things. My mother suggested I look up how I should properly file my taxes for the money I make, and then I fell into this whirlwind. I was scared of making more money, because I had done so with stocks during the heart of the recession, actually made quite a bit, but did not file taxes properly, and ended up owing the government $1000s even though I was 19 and new at what I was doing they did not care.

I wanted to make sure I was legally doing what I was doing. I think the licensing to sell products is more when you are getting packaged new products, not opened used merchandise sold for second hand.

I am glad to know I do not need to do anything but file taxes at the moment. I do not produce any garbage from my business, only recycling, and it literally is not even enough to be worthy of a monthly pickup. Since I deal with cards, and coins, and stamps, everything I buy or that is sent to me is recycable, and everything I send out is recycable and does not produce waste. Except for cardboard boxes from envelopes(about 1 a month). That is it, all products I buy to help properly package are used 100%.

I do not want to sell from my home meaning have people come to pick up or buy, I just am going to be taking pictures of my items, posting them online,and storing them here, it honestly is only enough to fill one big plastic bin. 

I do not want to hire a consultant, I have never been one to pay for people to do services that I can do myself, I was raised frugle like that. I represented myself in court for traffic tickets, got them reduced, do my own taxes, family cuts their own lawn.....etc. So I am definately not planning on wasting money on something like that. All the information I need is out there on the web, just a matter of finding it.

Thank you so much for the answers it helped thoroughly.

For now since I don't think I will be grossing $30,000 I am just going to file my income on ebay, as an alternative source of income. Just to make sure I don't fall into the same situation I did when I was playing with stocks.

When would you qualify, or need to be registered as a business. When you actually are producing significant waste? Using power, have employees, reach a margin of income?

[jannie1993]

Thanks for that question. I learned a lot by just reading their replies. Keep posting anyway!

[letsbid4that]

As for your zoning bylaw.If you are not going to have any customers coming to your home your fine as long as you conduct business by mail no one will be concerned but if you start having a flow of traffic to your door then you will run into difficulty.

The tax info given by other poster is correct and they know what they are talking about for very sure good advise.