|
Hi DumpManager,
What you should consider doing is registering a business name. The cost varies depending on the province you are in, but the range is about $25 to $100.
You are "self employed".
You will need to gather up all of your bank statements to show any direct deposits, and all of your receipts. Hire a bookkeeper or ask your accountant to put it all together for you.
If you have been paid by Paypal, you will need to gather these reports up too. You should not try to hide it. You may hide it this year and maybe next year, but sooner or later you will be audited and be forced to produce your Paypal reports. Anyone who tells you that your Paypal account is not taxable in Canada or Quebec is wrong.
Next, ask your accountant to find you ways to save some money. For example, your computer, Internet connection, hosting fees etc, are all expenses.
Some items cannot be claimed as expenses. For example, your car and your gas. If you try to claim it as expenses, you will be asked to produce a log of where you are driving to. If you try to show too many things as expenses that you cannot justify, you will set off a warning light at the Gov'.
Depending on where you live and how much money you made last year, you may have to pay income tax on it. But since you are self employed, you may also have to pay employer/employee taxes and other contributions too. (Normally, when you have a regular job, your employer deducts a certain amount from each pay check to cover this, but since you work for yourself, you will have to. Essentially, you have to pay twice the amount of tax).
You should not have to pay GST, PST or HST because you aren't really re-selling any services. However the government may think otherwise. If they think you are buying and re-selling content or services, you will have to pay GST/PST/HST for all Canadian customers you sold it to. However, if you are paid as a commission for sales, you probably won't have to do this. For this reason, make sure your accountant is clear on this.
Canadian, and especially Quebec Tax laws, are very tough. Before taking anyone else's advice here including my own, hire an accountant. Trust me it will save you alot of money.
One thing you may also want to do is consider creating a corporation. If you are "Dump Manager Inc", there are many more ways to save on taxes.
Good luck!
|