Full-time + freelance

[H.A.N.Y]

Hi everybody!
I´m working full time right now and I´ve got offer to do some freelance graphic stuff for my friend. I guess it´s going to be just few hours per month (maybe not even that). But I pretty much don´t know if I have to start my own company even for this little thing. I also don´t want to mess up with my tax return then.....any suggestions? Thank you Hany

 

[Alabaman]

Nothing wrong with starting your own company. It wont mess up your taxes but note that you will have to file corporate taxes as well and issue yourself a T4 or T5 at the end of the year.

 

[Baloo]

If you talk to your local business / entrepreneurship centre, you might find some useful guidance.

 

[H.A.N.Y]

Thanks guys! Maybe I should see someone like that. I know my friend told me to just fill out invoice, but I don´t think I can do it without any bussines number. She also told me that if you´re earning under 30000 a year you don´t have to have a company. That seams even weirder. But I´m just an artist and this is really another planet for me.....

 

[Jonboy]

Thanks guys! Maybe I should see someone like that. I know my friend told me to just fill out invoice, but I don´t think I can do it without any bussines number. She also told me that if you´re earning under 30000 a year you don´t have to have a company. That seams even weirder. But I´m just an artist and this is really another planet for me.....

If your revenue is less than $30,000 a year you don't need to register for GST/HST. Depending where you are you may have to register for provincial retail sales tax.

Assuming you are in an HST province and revenue is less than $30,000 your friend is right - you can just send an invoice. When you file your T1 tax return you need to complete a schedule T2125 where you report your self-employed income and c,laim a deduction for business expenses.