Surprise! You're In Business!

A. writes, "I breed parrots from my home part time as a hobby but was thinking of registering it as a business since there is a lot of expense that is involved and also some profit. Can I do this? And how do I do this?"
I get a lot of questions similiar to this one, and the basic answer is always the same;
if you are producing something and selling it, you're in business, whether you know it or not. It doesn't matter if you're doing it part-time, or if you're doing it as a hobby or a sideline. The Canada Customs and Revenue Agency is adamant that you declare ALL your income. If you're unsure how to do this, see my "Canadian Income Tax FAQ For Small Businesses" for information on which tax forms to fill out and how to declare your business expenses.
As for registering your business, you may or may not need to do this. In every province, sole proprietors who do business under their own names do NOT need to register their business. However, if you want to call your business something else, or add anything to your name, (such as Susan Ward & Sons), then you need to register your business.
More: Business Registration Library - Information on the registration procedure in every province.