Surprise! You're Running a Small Business!

You may be running a small business and not even know it.

Basically, in Canada, 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.

Now you may say, "but I haven't registered as a business." But 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.

For more on the different legal forms of business in Canada (sole proprietorship and other legal structures) see Choosing a Form of Business Ownership.

For more on business registration, visit the Business Registration section of this website where you'll find information on how to register your business in each province.

As a "new" small business owner, what else do you have to do?

• See if you need to register for the GST/HST.

• See if you need to register for PST/RST.

• Check and see if there are any other licenses that are required to do what you are doing. Contact your municipality, the appropriate federal agencies, or use BizPaL to find out.

• Keep all your receipts! They will matter when you're trying to claim business expenses on your income tax. 7 Ways to Make Record Management Easy gives tips for getting your record keeping off to a good start and simplifying tax time.
  

If you want to look ahead, Your First Business Income Tax Return explains how you'll declare your business income on your personal income tax form.

• Prepare a business plan. It's always good to know where you're going.

Image (c) Ratti Maribo