Setting up as a freelancer in Canada
Thread poster: Ahmed Ismail

Ahmed Ismail  Identity Verified
Egypt
Local time: 01:04
English to Arabic
+ ...
Aug 24, 2004

I am planning to go as a full time freelancer in Canada.
- I wonder if I need to register for a business number or no need now?
- Would the "Sole Proprietor" entity be the most suitable as a start?
- Do I have to do any paperwork with Revenue Canada before starting? or this would be when I file the tax in April?

Many thanks,
Ahmed
English>Arabic
Toronto, Canada


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Erika Pavelka  Identity Verified
Local time: 19:04
French to English
Freelancing in Canada Aug 24, 2004

Hi Ahmed,

You can obtain a business number once you earn $30,000 per year from your translation activities. It took me a few years after starting to get to this level.

I'm not sure about "Sole proprietor" as a status. I think we're just known as "self-employed".

As for paperwork, you don't have to contact Revenue Canada. Just keep track of your income and your expenses in detail, which will be required when doing your income tax return (and I would suggest having an accountant do your return because they are familiar with the kinds of deductions that can be made, etc.).

Good luck,

Erika


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Tina Vonhof  Identity Verified
Canada
Local time: 17:04
Member (2006)
Dutch to English
+ ...
Sole proprietorship Aug 24, 2004

Hello Ahmed,

Yes, you can set up your business as a sole proprietorship. You can register it under your own name or under a business name - that way the name is protected and cannot be used by others.

Check the following website for some details:
http://sbinfocanada.about.com/cs/startup/a/formsbusiness.htm

As Erika mentioned, the most important thing is to keep good records of your business income and expenses and to make sure you keep receipts and copies of your invoices.

What works well for me is to have a separate bank account and credit card for my business - that way I can never get my business and personal finances mixed up. If I want to use any of the money I have earned, I write myself a cheque.

I hope this is helpful. Good luck,

Tina


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Julie Roy  Identity Verified
Canada
Local time: 19:04
French
+ ...
It's quite easy Aug 24, 2004

If you decide to operate under your own given name, you don't need to register as a sole proprietor to freelance in Canada. On the other hgand, if you decide to operate under any other name (a name of your creation), you will need to register with the provice where your business (you) will be located. It costs about $60 for business registration. For tax purposes, you will still be considered self-employed.

You should check out Revenue Canada's FREE information seminars (http://www.cra-arc.gc.ca/events/menu-e.html). After attending the Small Business Information Seminar, I learned quite a bit about deductibles and other things.

Best of luck!

Julie


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Ahmed Ismail  Identity Verified
Egypt
Local time: 01:04
English to Arabic
+ ...
TOPIC STARTER
Tax time! Need some advice Apr 18, 2005

Dear All

Thanks for all your input. It was really helpful.

Now, I am preparing to file the tax these days as a self-employed.

I would appreciate to help me out with these queries.
- This is my first time to file the tax as "self-employed" working from home. DO I need to send my tax forms via post and enclose a copy of ALL the receipts, invoices, check slips,..etc or I donot have to do that?

- If the answer to the above questions is no, can I do it electronically then?

- I am subcontracting some translators overseas to help my with the translation. Would this be under salaries and wages line? or would be considered under other expsenses line?


Thanks in advance.







[Edited at 2005-04-18 21:26]


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xxxAinoaM
English
Should I start a business or what do I need to freelance without doing so? Dec 21, 2007

I have some projects set for january and I was wondering if I can do them without registering a business because I wont have an income of 30,000$ or even close to that amount. What is required to give invoices to companies when being self employed?, I would rather not register a company at this moment, is it possible?

Thank you


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Ahmed Ismail  Identity Verified
Egypt
Local time: 01:04
English to Arabic
+ ...
TOPIC STARTER
You do not need to do that Dec 22, 2007

You donot need to register a company if your income is less than $30,000 a year and you donot have to charge for a GST tax as well, however, you have to report this income accurately when you file your tax. You are considered as self employed and will use the same tax papers for individuals plus extra application or two to report this income + your expenses spent to generate this income.

Remember to keep the receipts for each and everything you buy to help you with your business. Everything should be well documented!
Try QuickTax software, it is pretty good program to prepare your taxes.


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Melisa Sottile
Local time: 20:04
English to Spanish
+ ...
Foreigner wants to live in Canada while freelancing...is this possible? May 17, 2012

Hi group,

I was reading this thread and just had some complicated questions about freelancing.

Suppose the following case, that may apply to me in the future:

If
I am from Argentina,
I am a translator,
I want to work solely as a freelancer,
I want to live in Vancouver, BC (and not in Argentina)
I have clients from different countries, not just Canada

Can I somehow become a resident by paying my taxes within Canada?

How would I do that?

I know it's a hard one, but I do not know where to find such an answer! I have a temporary work and study permit, no residence yet.

Any thoughts will be much appreciated

Melisa


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Sarah McDowell  Identity Verified
Canada
Local time: 18:04
Russian to English
+ ...
very expensive to live in Vancouver May 30, 2012

To Melisa,

I just saw your post about freelancing in Canada in Vancouver. I will help answer some of your questions since I am Canadian.

Melisa Sottile wrote:

Hi group,

I was reading this thread and just had some complicated questions about freelancing.

Suppose the following case, that may apply to me in the future:

If
I am from Argentina,
I am a translator,
I want to work solely as a freelancer,
I want to live in Vancouver, BC (and not in Argentina)

I have clients from different countries, not just Canada

Can I somehow become a resident by paying my taxes within Canada?

How would I do that?

I know it's a hard one, but I do not know where to find such an answer! I have a temporary work and study permit, no residence yet.

Any thoughts will be much appreciated

Melisa


Vancouver is the most expensive city in Canada to live in. Even Canadians find it hard enough to pay for an apartment/house, pay bills, food etc. You need to have a very high income to be able to stay in Vancouver for any great length of time. Are you sure that your income from freelancing will be enough to support yourself there?

You do not become a resident by paying taxes. You need to apply for permanent residence through the regular immigration process. If you have a temporary work and study permit you could possibly do your freelance translation business part time while you do your other work and study but once your permit runs out you will have to either leave the country or re-apply for a different type of permit.

In order to obtain a permanent residence permit you will need to find an employer to sponsor you so finding a job with a translation company based in Canada would be your best option.

Hope this helps!

Sarah


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Rahi Moosavi  Identity Verified
Canada
Local time: 19:04
Member (2004)
Farsi (Persian) to English
+ ...
Sole Proprietorship vs. small business structures in Canada Apr 28, 2013

Hi

I am about to move to Canada as a permanent resident in the next few months and was wondering if anyone could shed some light on the tax advantages of sole Proprietorship vs. small business structures in Canada. I'm a freelance translator and at the very least I would like to register as a sole proprietor with a certain name I have in mind but as I've heard this structure would place you in a higher tax bracket. Any ideas or comments?


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