Is My Business Legal?

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The value of a good business tax accountant
Is my business legal

 

 

Is my business legal? It is becoming a major concern
for many existing businesses to come up with answers.

In Canada, all businesses are required to pay taxes to the government, whether they operate online or not. The Canada Revenue Agency (CRA) states that all existing tax laws that apply to businesses also apply to business conducted over the internet.

Legal Business Structure

Here’s a step-by-step guide on how to start an online business.

Step 1: Choose a Business Structure. …
Step 2: Decide Where to Form Your Business. …
Step 3: Choose a Name. …
Step 4: Get a Domain Name. …
Step 5: File Your Business Formation Papers. …
Step 6: Set Up Your Finances. …
Step 7: Understand Sales Tax and Licensing Requirement

Most of those steps are understood by most entrepreneurs except for
the last three steps.

New entrepreneurs have a lot to consider when getting their startup off
the ground. To put the above steps another way, there will be finances,
inventory, marketing and branding, not forgetting daily operations and
customer service

Legal Online Stores

Do you have to have an LLC to sell online?

Simply put, you do not need an LLC to start your business although you
may decide you want one. An LLC, or limited liability company,provides
personal liability protection and a formal business structure.

You may also need to register your business locally, obtaining an EIN
which registers you to collect applicable sales tax and state taxes, as well
as necessary licenses and permits by state or province.

The majority of online starter businesses are usually sole proprietorship
and maybe even partnerships. However, they still need licensing. Just
because business is operating out of your home does not make you
exempt.

Keep in mind that you are required to be properly licensed according to
the jurisdiction where your home is located and the state you live in,
usually renewable on a yearly basis.

The issue of collecting sales tax has become a more prominent State
requirement that most online businesses have ignored. Doing so is to do
so at your own peril. Your local Income Tax company is responsible for
collecting tax revenue. If you owe, plan on paying taxes or fined as well
for not being licensed.

Regardless of where you live or the kind of business you wish to create,
one of the major first steps is to check in with your local town hall to
find out what local licensing is necessary and they can usually refer you
on the next step

As rules will differ from province to province or state to state, even county
in some cases, knowing the legal requirements can save you major legal
hassles later.

Business license Legal Thoughts

As a final thought, to this article, it really does not hurt to get a business
license, even if it is not required. The social benefit of trust is one major
when dealing with online customers making your business seem more
legitimate. Plus it gives you the ability to claim tax deductions for business
expenses.

The above article should not be construed as legal or tax advice. Always
consult an attorney or professional tax person regarding your needs.

My story is not your story nor are friends advice on how they conduct their
business. To play by the rules, you need to know the rules.

Till next time …

Fran Klasinski Editor/Author - frans frantic marketing blogEasy Business Builder tools articleFran Klasinski- warriorlady
Mentoring you with common sense
Marketing with finesse.

© 2019, Fran Klasinski. All rights reserved. on republishing any parts of this post, you must supply a link to the original post

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