Registering a business name in canada

[sauga_source]

Hi Everyone,

I was wondering if anybody knows whether or not I need to register my ebay user (business name) in Canada? Its a little confusing when it comes to taxes.. if Im suppose to claim any profits/losses from ebay. Am I suppose to be charging tax on the things I sell? ahhh.. its so complicated sometimes =(

Anyones help would be appreciated!

[zarzuella]

You can register your ebay name if you wish, while still conducting business as a sole proprietor. Yes, you are supposed to be charging tax - read more here:

http://www.gov.on.ca/ont/portal/!ut/p/.cmd/cs/.ce/7_0_A/.s/7_0_252/_s.7_0_A/7_0_252/_l/en?docid=EC001061

[*stealthtech*]

my user name is my business name and used for all my taxes. Cheers :-D
http://pages.ebay.ca/theme/mystoryarchive/sean.html

[sauga_source]

Thanks, so have you registered your user name as a business with the canadian gov? If so, what site did you use?

I also noticed you have your own domain. I set one up using namecheap.com so I could create my own email but for some reason, the email forwarding doesnt work.

any suggestions?

[ddc*stuff]

I believe you need to register your business name and get a vendor's permit... you have to charge sales tax on goods sold in the province you are in..

[sageleafkids]

Not sure what Province you are in. There are distinct advantages for incorporating, mostly have to do with limited liability, and tax advantages. These may or may not be good for you. The Industry Canada website or the Registry website for your province would be a good place to start.

For an ebay business, I would think that you would not want to incorporate federally, rather may want to do so with your provincial registry. Federal incorporation ensures that your name remains available throughout the country so that if you want to change provinces, you will also not have to change names.

The Revenue Canada website has information on collecting GST. As I am in Alberta, I have no knowledge of PST. If your worldwide revenues exceed $30,000 you are required to collect GST. It is actually good to collect it, because a large majority of your sales may be from outside the country, that you don't collect GST on. If you spend more in GST than you collect, you get a cheque back from the government for the difference.

You should be able to google business registration or incorporation along with your province, and there should be lots of information available to you about your options and the process.

Peter

[vesivus]

Hello Peter.

Yes, you will get money back if you sell more outside of Canada than inside... BUT... you also run the risk of an audit.

I have a registered business in Canada and most of my sales initially were outside of Canada. I was getting between $700 and $1400 back from CCRA every quarter, and eventually a tax auditor was sent to my business to investigate.

All was on the up-and-up and the story had a happy ending on my part, but just a warning to anybody who might consider registering to charge GST without fully contemplating the full requirements (bookkeeping, etc.)

Thanks!

John

[ddc*stuff]

I believe you are supposed to get a vendor permit (in Ontario) anyways.. I don't really know if it matters whether you register your business name.. the only thing is.. it locks it in.. For example if you build it up, become rich and then someone else registers YOUR name , it can affect you down the road.. (we can dream) I registered my name and have a vendor's permit... so far my sales are under 30,000 a year so I dont charge gst.. I pay sales taxes on Ontario sales..

You will need to keep track of your purchases/expenses & sales.. the first year is the hardest.......ughh...

[futuretech_liquidations]

Very good advise John - we too were audit shortly after getting our GST number back in 2004. The auditor who came to the office told us that CCRA is especially interested in eBaY sellers these days and they have gone far as hiring eBaY consultants to teach them the in's and out's of eBay.

So Peter, take John's advise and make sure you have your books in order - remember they can go back 7yrs if they so choose to do so. But usually they limit the audit to when you first got your GST number registered.

Cheers,

TIM @ FTL

[recped]

the only thing is.. it locks it in

Registering your name with Provincial authorities (Consumer & Corporate Affairs in Ontario)does not really protect the name from use by others. Only a trademark registration can do this and that's costly (probably $2000 - $5000).
"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.

[scouttech-outfitters]

Sauga trader...If you'd in Mississauga, you can go to the top floor of the library across from square 1 and they have a Business name and registration machine there that you can do it all with