QUESTION:
Hi,
I live in Windsor as Canadian Permanent Resident and I recently explored a
business opportunity.
There is a US Company who sells its services as products to its US and
Canadian customers. This company needs the telemarketing of its products so
the company can have better sales. I can become the Canadian Associate of
this company and I will ask my cousin’s call center in India to do the
telemarketing for this company. US company will pay me the commission in
Canada for the sales made by me, and I will keep my cut (some percentage)
and the rest of the money will go to my cousin’s company in India as his
call center in India will do the most of the work. How do I make sure that
my cut covers the tax and legal liabilities in Canada?
I recently registered my company as Sole Proprietorship online and got its
Business Number. I want to know what other legal formalities are involved,
before I start the business with the US and Indian Company.
Do I have to resister for GST/HST or any other federal / provincial number?
What kind of agreements should I sign before even I start any transaction?
What is advisable for me?
And please also let me know your yearly charges for the book-keeping and tax
filing related consulting.
Thanks,
=========================
david ingram replies:
If your company expects to gross over $30,000 in any calendar year, it must
be registered for GST. If the sales are from out of the country, you do not
need to collect GST but you must be registered. If you do make a sale
within Canada, you must charge GST% on that sale and unless you are in
Alberta and selling to Alberta, you will have to charge a provincial sales
tax as well.
In general, your question is too involved with too many what-ifs to deal
with in this venue.
I charge $400 CDN an hour for this type of consulting.
Unless you are in BC, I would not be interested in any involvement in the
bookkeeping part.
Answers to this and other similar questions can be obtained free on Air
every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram am a
permanent guest on Fred Snyder of Dundee Wealth Managers' LIVE talk show
called "ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the internet
at
www.600AM.com <http://www.600am.com/>
Call (604) 280-0600 to have your question answered. BC listeners can also
call 1-866-778-0600.
Callers to the show and questioners on this board can also attend the
Thursday Night seminars on finance and making your Canadian Mortgage
Interest deductible.
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
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Home office at:
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