If you’ve landed here, you’ve hopefully registered your business and chosen your structure. Now it’s time for the dollars and cents. Making revenue means you need to know how taxes work. If you’re unsure where to start, you’re not alone. This guide breaks down the basics of GST and HST, so you can stay organized and avoid unexpected costs.
Why Start a Side Hustle in Canada? (Side Hustle Series)
How to Register a Business While Working Full-Time (Side Hustle Series)
Choosing the Right Business Structure for Your Side Hustle (Side Hustle Series)
When Do You Need to Register for a GST/HST Number?
Do you need to pay taxes on your revenue? The answer is yes; once you exceed a certain amount of revenue, you will need to pay for HST in Ontario.
If your side hustle’s profits exceed $30,000 within a calendar year, then congratulations! You’re no longer considered a small supplier. And you will need to register the business to charge GST/HST on profits that exceed $30,000.
How to Register for GST/HST?
Registering for taxes can be done with help from our team at Ontario Business Central. Registering online is simple. You will start by providing the following information:
- Business: Name, service and address information
- Personal: Name, address, date of birth, phone number and Social Insurance Number (via phone or email)
- HST reporting period: Monthly, quarterly, or annually
- Total sales: Throughout Canada or beyond if applicable
- BN number: A 9-digit number that identifies your business with the CRA
- Note: Your Business Identification Number (BIN) is not the same as your BN number. If you can’t locate it, Ontario Business Central can help.
What to Know About Deadlines and Transaction Tracking
Before you reach $30,000 in revenue, applying for HST is voluntary. But once you exceed it, your deadline for applying is no later than the day you’ve exceeded the amount. Otherwise, you’ll have to start charging GST/HST on any product or service that exceeds $30,000.
To ensure you maximize your gains, you’ll want to maintain an organized record of transactions and plan if you will be required to register for HST. These records include:
- Income
- Expenses
- Receipts
If you’re unsure about upcoming deadlines for GST/HST, or if you want to check if a business is already registered for GST/HST and can’t find the account number, we can run a BN Search to confirm any muddy details or missing information.
Keep More of What You Earn
Understanding GST/HST is a key part of managing your side hustle as it grows. Knowing when to register, how to track your business transactions, and how to stay organized can save you time and prevent costly mistakes down the road. Whether you’re just crossing the $30,000 mark or planning ahead, Ontario Business Central is here to help with every aspect of your business journey, including tax registration. Reach out to us today to learn more.
inquiries@ontariobusinesscentral.ca
Toll-Free: 1-800-280-1913
Local: 1-416-599-9009
Fax: 1-866-294-4363
Office Hours: 9:00am – 5:00pm
Monday – Friday E.S.T.
Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended, when you have legal or accounting questions that you speak to a qualified professional.
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