Setting up an on-line business

Discussion in 'Growing and Managing a Business' started by Mariana, Sep 29, 2011.

  1. Mariana

    Mariana
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    Hi,

    I am new to the forum and am delighted to be part of the group.

    I would like to set up an online business selling crafts and accessories. I am a Canadian but I do not want to obtain a business registration in Canada because of tax issues. I understand that I still have to pay tax for any profit I make but thought it would be a lot easier without involving the accountants, etc.

    What I intend to do through the website is that, I will advertise my products and get the orders from public and then send the orders to the manufacturers and the manufacturers will send the products directly to customers. Transaction will not take place in Canada and there is no importation and exportation of goods in Canada.

    Under these circumstances, am i obliged to register my business in Canada or is it a must because I am a Canadian.

    If I need more advice, should I contact a lawyer or an accountant?

    Anyone can shed lights on this?

    Thanks
    Mariana
     
  2. BusinessGeek

    BusinessGeek
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    Hello Mariana,

    It's great to meet you as well, I am new to this forum too. There are several people that sell things online without a proper business license. Now while this may not be totally legal in some circumstances, it is a way to get started without investing money into your project before seeing a return. So you should be okay to start up a website to see if you can make sales.

    If I'm correct you should be allowed to do what you're doing and register the business in Canada because that's where your company would be physically located. Although, the drop shipper that is mailing your products will still be kind of an impartial party in these transactions, operating as one of your business connections.

    I am not familiar with Canadian business laws or regulations, but from what I do know you should register the business once you start to see revenue. I would like to see other opinions on the matter though.
     
  3. Mariana

    Mariana
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    Hi BusinessGeek,

    Thanks for your advice. I actually do not have an office location in Canada, but I will be receiving invoices and sales receipts through my email account which is registered with a Canadian address. So, will my home address be considered a business location.

    If it is not illegal, I would prefer simply to report profit on Income Tax Return without going through the trouble of getting a business licence. Someone told me that it is much easier to set up business elsewhere, is that right. If so, I would like to explore this further. I know very little about business but really want to give it a try.

    Thanks again.
     

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