If you are operating a business in Canada, you need to know about the Goods and Services Tax (GST) and the Harmonized Sales Tax (HST) and you MUST charge GST/HST unless your business qualifies as an exception. We summarized general basic rules of GST/HST that each business owners should know. However, type of business and location that you are operating may have different rules and exemptions. 1. GOOD and SERVICES TAX (GST)/ HARMONIZED SALES TAX (HST): GST is a tax that applies to most supplies of good and services which made in Canada. And HST is a combination of federal GST and Provincial Sales Tax (PST) into a single value added sales tax. However, only five Canadian provinces charge HST
If you are in process of starting your business, you need to know which organization structure meets your needs and aligns with your business goals and objectives. Generally, there are three types of business structures: Sole Proprietorship, Partnership and Corporation. SOLE PROPRIETORSHIP: The Sole Proprietorship is the simplest and cheapest method of organizing your business. Some of the features for a Sole Proprietorship as following: Owned by one individual Could be any size of business Simple structure Sole Proprietorship is NOT a legal entity The owner is completely responsible for its debt and tax liability Can operate under the owner’s name or trade name Simple taxation PARTNERSHIP
