One of the most common complaints that many of us have is this: “I don't have enough money!” The good news is that this is a problem that you can remedy. You can always make more money, if you make the effort.
If you wish that you had more money coming in, starting a home business can be a great way to supplement your regular income and provide you with some tax opportunities.
What is a Home Business?
A home business could be almost anything that gives you an expectation of earning income. You work from the comfort of your home, and build up income streams. Many home business ideas revolve around selling a product or service. Your business could be fixing computers or selling items on eBay. Even a blog counts as a home business as the advertisements provide income.
While you can certainly start a home business creating handmade items and selling them, or do odd jobs on the weekends, the reality is that technology makes it easier to do less labor-intensive things in order to earn money on the side. Your home business can be run fairly easily with the help of a computer and the Internet. Almost anything you can think of can be accomplished online.
Getting Started with Your Home Business
The simplest way to register as a business is to start a sole proprietorship. In Alberta, and in some of the other provinces, if you are operating under your own name, you don’t need to register your business name. It's easy to just get started, although you might need to get a business license to operate out of your home. Find out about the local laws so that you don't run into trouble.
If you want to operate under a trade name, you’ll need to have the name approved and registered with the Corporate Registry. Other provinces may have different rules regarding registering a business name. Please check your provincial government’s website to verify what you need to do.
Understanding the Paperwork and Tax Implications
Don't forget that there will be paperwork and tax implications. Sticking with a sole proprietorship can simplify things a great deal, but you might need to change things later on if you hire employees, or if you expand to the point where a new tax situation is something you seek.
Do your research so that you are in compliance with all rules and regulations. If you aren't sure about something, you can consult with a professional who can help you set up your business organization, and help you manage your payroll operations. While this can get costly, if your home business has grown, it's worth it, since you know that you are getting solid advice that will save you in terms of taxes and penalties later on.