2017-03-08 00:00:00 Advice English Register your crafts business as a sole proprietorship. Depending on your earnings, registering can help your crafts business to be in... https://d1bkf7psx818ah.cloudfront.net/wp-content/uploads/2017/06/08214134/close-up-of-bag-made-by-artisan-craftsman.jpg Register Your Crafts Business as a Sole Proprietorship

Register Your Crafts Business as a Sole Proprietorship

1 min read

If you’re an artisan, and you’re making enough money from your crafting business to call it a full-time or part-time living, you might consider registering your business as a sole proprietorship. A sole proprietorship is the easiest type of business to set up in Canada. There are several advantages to registering your crafts business as a sole proprietorship. Registering as a business legitimizes your entrepreneurial efforts, so registering as a sole proprietorship is worth doing if only to establish credibility. If you have income from another source, such as a full-time or part-time job, you can deduct your craft business’s losses from that income. The Canada Revenue Agency will require you to have a formal business structure if you make more than $30,000 annually in sales; you’ll have to collect GST/HST or the applicable provincial sales tax from your customers. One of the few things you need to do to establish a sole proprietorship is register your business name in the province where you operate, for which you’ll fill out a form and pay a small fee. If you use your own name only as your business name, say “Clara Jones,” you won’t have to register it. You’ll have to register a business name like “Clara Jones Quilts,” though. You also may need a local permit, depending on the type of materials you handle in your crafts business. Registering your crafts business can help you establish credibility in your target market and can help you be compliant at tax time.

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Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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