Have you left your job to go solo and create your own business? Do you have a hobby that has grown into a business opportunity that can supplement your income? If you are starting a business, registering it is a small step that can help you reap the rewards.
Below are five smart reasons to register your small business:
1. Establish an identity
Registering your company name helps you start creating a brand identity. When you register your business name you can check whether the name you want to use is unique and not similar to an existing company name or trademark.
2. The tax man (collecting GST/HST)
As a small business in Canada, you may need to charge GST/HST on the products or services you provide.
If you expect your revenue will top $30,000 a year, you will need to register for a GST/HST account, which requires you to have registered your business. The amount of tax charged depends on the province in which your business operates. If you think you are a small provider but your sales exceed expectations, that’s great news! You will need to register for a GST/HST account and charge the tax on the sale that puts you over the $30,000 threshold.
Check out our guide to learn more about GST/HST returns for small businesses.
3. Show me the money!
Your business might need: the right business bank account