Is it best to run as a sole proprietorship or start a company when selling domains? what works best for tax purposes in Canada? or do you make a change once you reach a certain revenue amount?
Taxes and domain business? (1.Viewing)
- Topic Starter domains
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- Replies: Replies 18
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How you register your business is a personal decision, I like sole proprietorship because it is easy for beginners but remember to charge sales tax. Revenue Canada will eventually come calling if you sell domains in Canada and do not charge sales tax.
I think it is around 20-25k per year until in sales until you have to charge sales tax. If you do not then you have to pay all that tax back to revenue canada and it will eat into your profits big time.
I like collecting sales tax because it allows me to claim back the sales tax I paid on renewals.
I think it is around 20-25k per year until in sales until you have to charge sales tax. If you do not then you have to pay all that tax back to revenue canada and it will eat into your profits big time.
I like collecting sales tax because it allows me to claim back the sales tax I paid on renewals.
MapleDots said:
The threshold is 30,000. More details here.
Incorporating can potentially also protect you more in case of any potential liabilities, but I mostly did this due to the consulting I offer rather than the domain trading.
rlm
Bonfire.ca
Bennett G.
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theinvestor
DNC.ca
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