Last updated on April 19th, 2021. Posted in Additional Business Ingredients.
A big question that's very likely on your mind as you're thinking about starting and growing your online business is, what should you do about taxes? How should you handle taxes? Should you incorporate? Should you set up some kind of business license?
Here are links and resources mentioned in today's video. Enjoy!
This stuff can be a big, big hang-up that stops a lot of people. And even though this might seem complicated and overwhelming (after all, the government's involved!) it doesn't need to be. Understand that you aren't the first person to ever set up an online business.
Thousands and thousands have come before you...so this is a well trodden path. Said another way, it's a phone call, not an obstacle. A phone call to whom? To your accountant. When I was starting out, this is exactly what I did. I just phoned and asked my accountant.
I said, "Hey, this is what I have in mind...this is what I'd like to do...What do I need?" She told me what I needed to do, and it was all very, very low cost and simple.
Now I won't tell you what her specific advice was to me, because I'll bet we're in different jurisdictions. Back then, what applied to me here in Ontario is very likely much different for you and where you are. SO find out. Make a phone call and find out.
Now one thing I will say, only because it's such a common mistake, is that if you do start making sales, some of that money isn't yours. A percentage of it actually belongs to the government.
And they have people with guns! And at tax time, they're gonna come looking for what's theirs so you'd better have it! So many people get themselves into trouble with this. They simply don't think about taxes.
So when you start making sales, set a percentage of the revenue you make aside and get talking to an accountant sooner rather than later. Beyond that, do some research. Get the wheels moving here, and don't get stuck on this.