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By Betty Penny Starting a business from your home can be a very attractive idea. It can be a good starting point for some, as overhead expens- es can be minimized. How- ever, in starting a home business, there are some things to consider that re- quire careful financial planning, knowledge of government compliances and other administrative tasks. Here are some planning points that you should consider. 1. Business Registration Make sure that your business is registered and the business name is searched, so that you are not using an existing busi- ness name. (note: you do not need to register the business, if you operate under your own name). 2. Bank Account Open a separate bank account for your business. This will help separate your personal transac- tions from your business . transactions. 3.GST You are not required to file returns if your income is below $30,000. Howev- er, it may be to your ad- vantage to register if you make inventory or large equipment purchases, as you will be able to claim the GST that you paid on your purchases. If regis- To | Advertise in this feature please call The Roti Pere Shay at 985-7383 NOC The steps St tered, you are required to keep track of the GST col- lected and paid separate- ly. 4. PST Determine whether or not your business should be charging PST. If so re- member that you are ex- empt from paying PST arting x ~ erp WEG eImen Su 3 2 deduction based on the percentage used on the overall square footage. For example, if the space you are using for your busi- ness 1s one of 10 rooms, you can write off one-tenth of rent or mortgage inter- est, utilities and property tax. your oO re J 8. Insurance If you are meeting cli- ents or customers at your place of residence, you should contact your insu- rance company to see whether or not your home insurance has business li- ability coverage. PORT PERRY STAR - Tuesday, January 16, 1996 - 11 9. Professional Advice Make sure you get pro- fessional advice when set- ting up a business. A pro- fessional will help in structuring your compa- ny, help you with govern- <3 ment compliance, future planning and could save you a lot of money and griefin the long run. Betty Penny is chairper- son of the Durham Home Business Association. when making purchases for resale. PENNY ¢*ASSOC. ACCOUNTING - Computerized Accounting Training, (Accpac Plus, Simply SERVICES Business Visions, Quickbooks & Lotus) Management Consulting 180 Mary St., Port Perry - Part-time Controllership Personal 8 Corporate Taxes Ontario LIL 1C4 Temporary Bookkeepers Phone (905) 985-0712 - New Business Set-Ups 5. Bookkeeping ep your records cur- rent and in an orderly fashion. Invest in a book- keeping system that works for both you and your accountant. This en; sures that you are able to obtain the information you need when you need it. Siksay & Fraser J A TUR 00 i i Ol SCENE CIC Ol] oll F-10 & Commercial Law, Municipal & Development Law, Wills & Estates Main Office - Whitby Betty Penny, Principal Accountant Patrick Fortune, Assoc. Accountant Branch Office - Port Perry hg ; Toll Free 18006996190 - Mobile Service 6. Local Bvl 204 Casimir Street, Port Perry 618 Athol Street, Whitby Fax (905) 985-9461 - Competitive Rates A summary of Durham's Phone: (905) 985-4141 Phone: (905) 666-4772 | bylaws indicates that Fax: (905) 985-4598 Fax: (905) 666-3233 home occupations should not exceed 25 per cent of the floor area and that it should be secondary to the residence. You can gét a copy of the bylaws for home occupations at your local municipality to de- termine what bylaws are in place. Buy 50 photocopies & receive KORR Wall-Pocket Set 15017 - Three pockets per . Great Price! set. Letter size. Smoke 7 i a Color. Sale ends 7. Home Business De- i rr : /9 ductions : > or | 8 INE=b--e One of the advantages of Co RQ (of the having a home based busi- iy ness, is the expenses that you are allowed to write off. You can calculate your set 188 Mary St., Port Perry ee ee ee et Le ee ee a tt a a eee ee eo SO AR AAA A AAR A AS AAA LSA AAAS ALAS AAAS AASAAARSAASALANRALLA SALAS A SAAR ARAA SAAS AAAA ALARA ALAA ANA RC Dea a SS RE +o aaa Fa aaa Tota Tate oon e tata ate tate feat a a a ata ta a a ett tee a a a a Tat a a a a a eta a a Ta a a a ae aa a Ta a a ea a a ea a a sta Sa a a a tas Sa oats A Come out and see how you can Save an extra 40% in taxes on your RRSP contribution this year Marilyn Goodhand and Working Ventures Canadian Fund Inc., Marilyn Goodhand, CIM Rates subject to change without notice | | | E . | | | LE | | : invite you to attend a seminar: Independent Investment Advisor ; AN Cl AL SE RVI C ES str Janna 2d {| |ISCUGOG FIN Brim ; es on to pm y The Power Of I A DIVISION OF CRESSBROOK FINANCIAL PLANNING LTD. Investment in Working, Ventures 5,000 . | i Tax Savings | $2,500 | Harmony Creek Golf Centre, Working Ventures E 250 QUE EN STREET PO RT PERRY RISD x deduction | Bloor Street, Oshawa Canadian Fund [ Serving Scugog for Quer 15 Years ri Tax Credit ny $2,000 Jp efits about this malo Working Ventures Canadian Fund in : i» H O N = 085-3832 0d 14 ' s cont ts prospecters. urn-sized Canady = Provincial Tax Cred copy om sie dk ly qu & | 7 nd edi zed Gad 3 (20% where applicable) SLOOO | licenced to distribute these secuntics and read businesses with the objeaiive of achieving 7 Re it carefully before investing. Share value and long term capital appreciation. At least 20% E 5 | Your Net Cost $500 | mvestment return will fluctuate. The of the fund's assets will be kept in high E: . 3 es : an . : & ° [omens sa | Dans |e dee [HL Will your business be affected i : 5 || by the fiscal year-end change? : WORKING VENTURES Find out about the income tax consequences from For more information or to reserve your seat, call: ||| H&R Block. We can help you. a 3 E : iE 3 500 Brock St. S., Whitby I \ FORTUNE 1-800-252-8565 ( Because it's your money. HsR BLOCK FINANCIAL 2 Se Whitby: 665-1651 | THE INCOME TAX SPECIALISTS \ Bt a St ER Ne an