MapleDots said: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.
Bennett G. said:Old topic, but how do you guys do the Tax calculations as a Sole Propreiter? This would be very different for Incorporated biz.
Tax on "Total Revenue - Expenses (including new acquisitions/renewals, marketing cost if any, other misc. expenses)" = Profit?
theinvestor said:Incorporation is relatively cheap. A few hundred dollars. It’s the yearly accounting fees. Depending on the cost of your accountant it could range from $1,000-$3,000 yearly for their bookkeeping and year end taxes. The more complex the more you pay. That’s generally how it works.