E-commerce in Canada, Online business in Canada

[@businessincanada-doitright1822]

4. Have a proper understanding of how HST works, and how it will apply to various transactions, especially those that are being processed by overseas buyers. Watch my video on HST kzbin.info/www/bejne/pYTPd41vmNl0jZY 5. While operating an online store our responsibilities of privacy and protection of personal information are much more diverse and intrusive than what a regular store has. We collect personal information of our buyers, visitors, subscribers. Almost every country has its own (usually strict) rules for the protection of a personal information collected by websites. Remember that either directly or indirectly you are collecting the payment information of your clients - verify what are the rules relating to the storage and protection of this type of information. 6. Provide proper protection to your Intellectual Property, in particular - trademark, copyright, website domain name. See my video about limitation of various IP protection here: kzbin.info/www/bejne/j3a7iYanicp5lcU

[@deserieoware7055]

This channel is really great. I've been looking for information on how to deal with the legal aspect of running a Canadian e-commerce business and these videos are really helpful especially for someone who doesn't really know where to start and what to ask.

[@KyleJess]

We can't seem to find it in your library, but curious to know if you could break down how things would differ as content creators, creating content all around the world? We are travel vloggers/content creators and are looking to get incorporated and register our business in Canada, being Canadian citizens and residents. However, we can't seem to find any specific information on important factors needed to be considered or if we will need to file taxes in each country we create content, etc. Please let us know if you have any suggestions or additional content covering this specific situation. Thank you! 🙂🙌

[@mjrose3761]

Hello Sir, I want to start my own cosmetic ecommerce/online business here in Prince George BC. However I'm not familiar with the legal aspects of starting a business. One question I have is, can I run my online/e-commerce business on a rental basement that I'm renting with a roommate? Two is if I want to ship products to other countries such as US or UK, what would I need to do for taxes?

[@businessincanada-doitright1822]

Well, where you can operate your business depends on the local municipal rules. That being said, if all you do is manage you website and mail out parcels, I see no reason why you cannot do it from your basement. When shipping parcels overseas, you do not collect HST/GST, and you do not deal with the customs, since this is the responsibility of the customer. All your expenses (shipping etc) are included in cost of business for tax purposes.

[@chrisjust7445]

I'm thinking of starting a part-time e-commerce business on Shopify. I'm working full-time at a job I love, but I'd like to try running a side business in my spare time doing 100% dropshipping of products. I've created a business plan and researched the privacy and commerce laws and taxes for all the countries I'm planning to sell to (just the English speaking countries for now). I was thinking of starting out as a sole proprietor in the beginning and only creating a corporation if I manage to make over a certain amount of sales (lets say $5000 or $10000). Do you have any suggestions about starting small businesses like that, where it's really more of a hobby or experiment than a full-time job?

[@businessincanada-doitright1822]

Chris, to start a small business as a hobby, you can definitely try as a SP. The only consideration that might justify incorporating in your situation is higher liabilities arising from your business - if this is the case, then you might want to incorproate earlier to protect your personal assets from future claims. Once the business starts making money, you indeed should incorporate to enjoy better tax planning opportunities. You have to assess all your potential liabilities - "what can happen and what I could be sued for" and then have a proper agreement covering all or most of these situations.

[@YOYK666]

Awesome...

[@presentowner3198]

Mindbuildingsolutions approved! Excellent video and content.

[@tcyva4845]

i just finished watching all of your videos :) thank you for posting them. im planning on starting my online and would love to know more things about starting an online business please

[@tcyva4845]

im from quebec

[@businessincanada-doitright1822]

Hi Tcy, thank you for your warm response and support for my videos. Are there any specific questions that you might have about online business and the legal side of its operations. Please let me know and I'll do my best to answer and maybe even will prepare a comprehensive video responding to these questions.

[@tcyva4845]

Thank you so much for replying! I’m planning on starting an online business and sell handmade jewelries. Should i only do federal incorporation if I’m planning on selling internationally too ? Also do we need a minute book for an online business if I’m the only owner? is it obligated to open a business bank account when i'm just starting? I would love to see more online business related video please, thank you 😊

[@krishchauhan235]

Thank you so much for this, it helps a lot. What liabilities do you think a online company which sells digital products like software or games, may have?

[@businessincanada-doitright1822]

Well, it always depends on the type of software, right? But overall, in my opinion it's one of the last legally sensitive areas of business operations. I would pay my attention to copyright, parents and Beach of software licenses of other developers. Additionally, always ask yourself, what people will be using your software for and what would be the worst case scenario...

[@bomkim2737]

Thank you for your valuable info. I am working on opening an e-commerce business to sell crafts in Canada. My big concern is the supplies I need for my work. If I fail to find the ones I am looking for, I have to import them from my country. Can I still claim a tax deduction on overseas supply expenses? Don;t want to against the government law, but really hard to get proper info before starting a business.

[@chouichaadel5731]

Hello, what is the best legal form to choose for an online store ?

[@Pushpinder.Singh.369]

Amazingly informative! Thanks for such an advise.

[@crossgaming8933]

Hi , how is time calculated while doing online business? Im an international student... i have my own website , i can work 20 hrs per week ..but how will the 20 hrs be calculated ??

[@businessincanada-doitright1822]

Well, I guess this is the right question to ask. Since it;s your company - there is no way to calculate hours. I also do not think that someone actually comes and tries to verify the hours. It's not that you pay yourself hourly and keep the logs...

[@raphaelyvens3974]

How its going so far. I have my Own store too

[@ElektrasLove]

Excellent

[@italmau]

Hello, I have a specific question, hopefully you could help me. Most people recommend LLCs to operate a business in US as a non resident, however, I am a Canadian citizen would that be the same case or would I be better off with a Corporation, tax wise. Appreciate the help

[@benshuttleworth4051]

Hi Eugene, great video, very informative. Quick question, currently operate a few different small online stores on Ebay, poshmark and Etsy and sell to various provinces across Canada. After i incorporate federally do i need to register in each province that i sell to? even if its a small number of sales? Also a video explaining the process of incorporating business and annual responsibilities of running a corporation would be great. Thanks for all the help, great channel!

[@businessincanada-doitright1822]

Ben, no you do not have to register your fed. corporation in every province where you sell. You will have to register in those provinces where you have actual business presence - warehouse, plant, office etc. You might want to include in the terms of use of your website a provision indicating that the sale is performed in the province of your location, and not at the point of delivery.

[@benshuttleworth4051]

@@businessincanada-doitright1822 Thank you so much for taking the time to reply. Very helpful.

[@arabesquecompany3179]

Hi , I want to register my ecommerce business in Canada. I used to live in Canada (a year ago) and for some work reasons, we left Canada after COVID and i was in the prelaunch stage of my business. so now, how i can i register my business while not have physical presence in Canada?

[@businessincanada-doitright1822]

Hi, your personal presence in Canada is not really required to register a corporation. In ON, BC and AB you can do so without being a resident at all. I can definitely assist with ON registration. We also provide a physical address for the corporation's registration as a part of our services.

[@nancybaker2559]

@@businessincanada-doitright1822 plz send me your email

[@businessincanada-doitright1822]

@@nancybaker2559 [e-mail]

[@paomarinas7124]

Would be also be able to sell your products online if you had a incorporated business?

[@businessincanada-doitright1822]

Yes, absolutely. Selling products online is just another form of doing your business, and very common nowadays...

[@paomarinas7124]

@@businessincanada-doitright1822 Thank you so much

[@EngrAhmed00]

Do I have to get a master business license as a sole proprietor or has to be incorporation?

[@businessincanada-doitright1822]

Both SP and corpoation can have a MBL. You need it in case you want to operate a business under a name different from your own.

[@unclesquirrel6951]

Where do I get my resale tax permit for Canada so I'm not paying tax when I buy from suppliers

[@raiyanahmed4504]

Hello Sir, I am British Columbia resident i want to incorporate for selling on amazon, have a question if i incorporate federally do i also have to register in my home province(BC)

[@businessincanada-doitright1822]

Yes, every corporation must be registered in at least one province. With BC, what you should keep in mind is the cost - federal incorporation is $200 and BC registration is $350. So together you will end up paying close to $550...

[@syedammar2509]

Hey sir I am a international student in canada and I want to do shopify dropshipping, I wanted to ask that is it legal to sell products online cause I am an international student and I have 20 hours per week to work and if it's legal would it be considered in my 20 hours of work hope you'll answer my question. Thank you.

[@businessincanada-doitright1822]

Syed, I think that I've answered this question on a couple of opportunities (I will also post a video with this topic soon)... You should distinguish between operating a business under sole proprietorship, which could be contrary to your student permit; or as a corporation, which in my opinion your student visa does not prevent. Once you incorporate, your corporation will become your employer, and since you are allowed to work 20 hours per week - this should be OK. I still would suggest you to discuss it with your immigration consultant to make sure they do not see any issues and problems that your business ownership can pose in the future when you apply for a PR status.

[@daljindersingh365]

I've kinda similar question, can we start an online business while on an open work permit, I see similar nothing on Canada.ca regarding this topic( that can we start an online business, affiliate marketing etc). Please guide.

[@KA1122L]

@@businessincanada-doitright1822 ​ Can you make a video on how once we incorporate our corporation becomes our employer how we pay our self?

[@hisokazbungeegun5876]

Can I do online business as an international student with no green card?

[@businessincanada-doitright1822]

Hisokaz, I've answered it in many questions below. Overall, yes you can, but you need to incorporate for this purpose. As a student you are allowed to be employed as a part time employee for up to 20 hours (if I'm not mistaken). This implies that you will have an employer, and not work for yourself as a sole proprietorship. In my opinion, incorporating will solve the problem since you essentially will be employed by your corporation. That all being said - please make sure you discuss it with your immigration agent before you start your process.

[@khanhdao1932]

Hey, does anyone know how to get a resellers permit/wholesellers permit in canada and can we sell in america?

[@glitteringtothemoon6385]

Hi, I am a student studying in Vancouver so I am wondering if it is possible for me to own an online business on holding a student visa? Thank youuuuuu

[@businessincanada-doitright1822]

Well, it's not as simple. As a student visa holder you definitely can incorporate a business and own shares in it. On the other hand, your work permit is limited to 20 hours and is good for employment only, which means that you must be employed by a company. I also heard that some immigraiton consultants consider you being the director and officer of your own corporation might negatively affect your future PR application. So you should discuss it with your consultant as well.

[@MegaRepairs]

The best channel on KZbin Canada about legal things, please sir I have been following your videos to run my business please can you please update a video on how to file Anniversary Federal Annual Return for one person Federal incorporation regarding the annual meeting please I have to file it before end of June, please please and thank you

[@businessincanada-doitright1822]

Annual return is a simple process, where you "notify" the govt that the corporation is still operating and there were not changes in its status. The date of the meeting of directors in a corporation of one person is essentially any day of your choice. That's it, very simple and at the end you pay 13 dollars.

[@MegaRepairs]

@@businessincanada-doitright1822 Thank you for your reply you mean I just need to put any random date and that's it? No other things are required? Thank you

[@businessincanada-doitright1822]

@@MegaRepairs Yep. Essentially, you are not putting a random number, but the date of the meeting of directors. The point is that with you being the only shareholder and director of the corporation, you can choose any date to meet with yourself. Unless of course you need to schedule such meeting with yourself ;-)

[@zalenemail]

Do you need to register in local municipal when operating an online business?

[@businessincanada-doitright1822]

It depends on the type of busienss and local municipal rules. In most places, you do not need to register online operations. THe best way about it is to call your local municipal licensing or building department and ask them.