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Internet Marketers from Canada

Discussion in 'Making Money' started by stunna, Nov 6, 2008.

  1. stunna

    stunna Jr. VIP Jr. VIP Premium Member

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    There may be a couple people on this forum who can answer this for me.

    I have only been making money online for about 4 months now, so I have yet to experience the taxing process that comes every April for Canadians.

    Should I be keeping track of every last paypal payment, CPA company payment, etc.?

    Or will I just report it all as one lump sum depending on what I actually ended up depositing into my bank account?
     
  2. Jagged55

    Jagged55 Power Member

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    You can lump it all together if you want. All they care about is that you pay double your CPP contribution because you are running a business. If you are making "good" money, you may want to actually set up a small business (get a license etc) and then take advantage of the tax breaks.
     
  3. stunna

    stunna Jr. VIP Jr. VIP Premium Member

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    So they consider what I'm doing to be a business even though I don't have a business title or license?
     
  4. Jagged55

    Jagged55 Power Member

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    If you make money cutting lawns, it is a business as far as they are concerned. If people are only making a couple hundred dollars a year, they don't claim the money because it is a bit of a hassle considering the income is so low. The CPP contribution adds up though...trust me.
     
  5. stunna

    stunna Jr. VIP Jr. VIP Premium Member

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    Ahh, thanks for the heads up.

    Gotta start being more careful with the money management.
     
  6. antsaoo

    antsaoo Supreme Member

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    Hehe when i start making that much i need to report my taxes ill just put there from betting and casino from europe and see if i can fake it ;P

    only bad problem is might be +3 years in jail (this mofo coutry sucks soo hard) higher punishment for money crimes than for child rapists =/

    as here came into my mind ;P one model earned bit less than 400k this year ;P she had to pay 211k taxes

    wonder shes bit angry ;D
     
  7. stunna

    stunna Jr. VIP Jr. VIP Premium Member

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    What country are you from? I can't tell if you are referring to Canada.
     
  8. lonny41

    lonny41 Jr. VIP Jr. VIP Premium Member

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    Yeah, I don't know, I'm from Canada and wondering the same thing. I made some money from AFF this past year and I'm pretty sure I have to claim it.
     
  9. Jagged55

    Jagged55 Power Member

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    The tax issue is something personal so you have to do what's best for you. Many people who make tips at their jobs don't claim them even though their job description on the tax forms imply that they make tips. Now if you are making a fortune, driving a Benz and are "unemployed" people are going to see that your lifestyle doesn't match your income and might place a call about you to tax officials.
     
  10. dadhere

    dadhere Newbie

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    Hello fellow Canuk,

    I claim my taxes and use most of my money to build my business. Not a lot, 1-3k a month but I work too, so get a tax person who is in business for themselves, not a tax business. No accountability there that you can count on. If they're good the'll advise what to claim and when to claim it. I claimed my second computer the year AFTER I bought it.

    Hope that helps
     
  11. chachinga

    chachinga Guest

    Getting a numbered company is the best way to do things. I scan to folder all my checks, and deposit them in a business bank account that is both US and CAD. By doing this, you only pay corporate income tax, that sits at about 11%, but any money you withdraw becomes personal income. From this point forward, you can withdraw money from your business to personal, and either claim it as salary or dividend. An accountant (CGA) is the best person to make that decision for you.

    Unfortunately, I only incorporated 3 months ago, and I am sitting at the 40% tax bracket. Sucks, but live and learn.

    BTW, you don't need a business license to do internet marketing, just a certificate of incorporation.
     
  12. mrpatel786

    mrpatel786 BANNED BANNED

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    I thought corporate tax rate was 20% in Canada? What taxes do you pay on dividends, and what restrictions are there to doing this?
     
  13. chachinga

    chachinga Guest

    I just read online 19.5 % but from past discussions with my brother (he owns a physical business) i remember 11%. I just fired off an email to my accountant regarding dividend and corporate tax. Will post back when I find out.
     
  14. stunna

    stunna Jr. VIP Jr. VIP Premium Member

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    Would it better to open a US corporation and have a US bank account?

    Have you looked into this?
     
  15. chachinga

    chachinga Guest

    Don't know. But I suspect there would be some form of double taxation once you start drawing income.