I was going to wait to launch this blog until I had something I thought was valuable enough to post. After waiting and waiting (and waiting), I realized my story about starting this business probably is valuable to some folks. So here I am, writing from the depths of my research on how to register (and successfully launch) a business. I will not sugarcoat this journey, nor will I attempt to disguise my complete ignorance to the business world. I am learning as I go. I hope it amuses, enlightens and endears me to you.
Here we go…
I spoke with a kind, brassy lady at the CRA who told me that as long as I’m not going to make $30,000 or more in 12 months, I don’t need to register for an HST number. While there is a fine if I make more than $30,000 and don’t get a number, all I have to do is keep track of my gross income (before expenses) and let them know if it’s approaching the $30,000 mark before 12 months are up. At that time, they’ll issue me an HST registration number and I’ll have to start charging my clients that 13% (sorry, clients!).
Of course, I still have to pay HST on my expenses, and it’s reconciled with HST owing from my sales at the end of the year. This is a whole other thing I don’t have a very good grasp on yet (in terms of how it all works out based on my not having to charge HST), so please stay tuned for more info if you’re as curious as I am.
I remember reading somewhere that if you’re running the business as your own name (as I am), you don’t have to register the business at all (unless you get to the point where you’re earning more than $30,000 in 12 months – see reasoning above). However, according to ServiceOntario’s BizPal permit and registration search tool, I do require a Master Business Licence. The tool asks you a series of questions to generate a basic idea of the nature of your business, then makes recommendations based on that general profile.
The licence itself seems easy enough to obtain, but I’m curious as to whether or not I really do require it, since the search tool didn’t include a question about whether or not I’d be using my own name as the business name. Looks like I’ll be calling the Business and Personal Property Security Office tomorrow. It’s so sad that the $60 registration fee is my only obstacle at this point. Why did I decide to do this with no safety net of savings? Oh, right – I don’t have any office bureaucracy slowing me down, and I’m accountable only to my awesome clients.
