Do I Need to Set Up A Business to Sell my Book in Canada?

Here’s a question a client asked. Please don’t consider this as legal advice. It’s recommended you contact your local authorities to find out what it’s like in your city, province/state, and country.

Q.

Do you need a business license or any permits of any kind if you are selling books from your home and online?

A.

I think the answer would really depend on who you ask.

Revenue Canada treats books as a cottage industry meaning you claim your income along with your other income. Most people doing one book don’t need to worry about setting up a business or getting a business license with the city.

If you ask anyone with the city, you selling your book online is a business they can tax, so you’d better register it. I personally can’t see how they monitor every eBay transaction.

If you set up a business, you can claim the expenses of creating the product against the income you receive from the sale of the product. You don’t need to start collecting GST unless you make more than $30,000 in your business in a year.

Please realize you’re getting this advice from someone who hasn’t had time to do his tax return this year. I personally treat the expenses for books as expenses for my business and treat the income as income for my business. I have a city permit for a home-based business. I don’t need to collect GST.

Hope that helps.