# Mac Small Business Thread



## ehMax (Feb 17, 2000)

Pretty soon through ehMac.ca, I'm going to be selling T-Shirts and other ehMac.ca merchandise... as well as selling memberships. 

I've always claimed all ehMac.ca income and expenses on my tax return, but now that I'm going to be actually selling goods, I have registered ehMac as a business and will start to have to collect taxes, do some better book keeping etc.. I like things to always be on the up-and-up. 

So, I thought it would be fun to create this "Mac Small Business" thread, where we can talk about things relating to small business and Macs. If it goes well, maybe it'll get its own forum. 

I've already found some good government web sites on the topic of small business, but it would be nice to chat with some other small business owners who are in the know. (Sometimes it can be a little hard finding info on government web sites)

------

So the first discussion / feedback I'd like is on taxes. 

Basically, this is what I've surmised: For selling T-Shirts and what-not on an online store in Canada to all provinces, being based in Ontario:
- I have to collect PST in Ontario, and submit that tax to Ontario on a schedule
- Its worded a little different for each province, but basically I have to collect the PST for most provinces.
- I don't really have to collect GST, if my sales are under $30,000, but... if I sell to provinces that have HST, a harmonized sales tax, I do have to collect GST and have a business number for that. If I have that, I need to collect GST on all sales, except for provinces where they don't have GST. 
- There may be some tax advantages to me for having a GST business number, to be able to claim some GST on what I have paid on certain products. 

That's what I think I've read so far. 

Questions I have to figure out are:
- Do I have to do some type of retail sales tax registration in each province, or can I just remit taxes to them
- Does selling a "ehMac Sponsorship" service have to be taxed by GST?

I'll continue to do my own reading, but does anybody have some real street experience that can help me out?


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## MaxPower (Jan 30, 2003)

Great thread Mr. Mayor.

As as small business owner myself, and having an online presence, here's what I've learned so far:

1. Yes you do have to collect PST in Ontario and remit on a schedule.
2. You do not have to collect PST in provinces other than Ontario since you are physically located in Ontario. You only have to pay Mr. McGuinty.
3. If you have to pay HST, then you might as well collect and pay GST. It's all on the same form. Besides, GST is a neutral tax for business owners (more or less).

To answer your last questions:

1. See point #2 above
2. Everything is taxed. So yes charge GST. It is after all call Goods and Services Tax

If you are unsure still it is always best to talk to an accountant. They will probably help you and hope to get your year end business.


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## MaxPower (Jan 30, 2003)

BTW can we promote our business in this thread?


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## ehMax (Feb 17, 2000)

MaxPower said:


> BTW can we promote our business in this thread?


Sure! But only if you help out with the theard.. which you have!


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## ehMax (Feb 17, 2000)

Regarding only have to collect PST in Ontario, I found an article which states otherwise:

Charging Provincial sales taxes in online sales



> But what about the others? The consensus seems to be that the various provincial governments want out-of-province vendors (such as those who run Web sites and ship things to customers in their provinces) to register for, collect and remit the applicable provincial sales taxes. Some provinces have enshrined this demand in legislation whereas others are just politely asking, pointing out that it would be a convenience to consumers in their provinces.


Then it goes on to list each province. 

So... is this law, or just being a good Canadian citizen?


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## MaxPower (Jan 30, 2003)

I got that information from an outside source.

I'm going to ask my accountant about this (he used to be an auditor for Revenue Canada back in the day).

Off to Kansas tomorrow to do some business.

See you in a couple of days.


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## AppleAuthority (May 21, 2005)

Well my Dad is a Certified Managment Accountant (CMA) and I asked him. He said that PST does not apply to product that is shipped out of Province, but originate in Ontario. Thus, you don't charge PST.

Also of note, GST does not apply if you ship out of country. However, you must have a proof of shipment that the goods actually shipped to a destination outside of Canada.


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## ehMax (Feb 17, 2000)

AppleAuthority said:


> Well my Dad is a Certified Managment Accountant (CMA) and I asked him. He said that PST does not apply to product that is shipped out of Province, but originate in Ontario. Thus, you don't charge PST.
> 
> Also of note, GST does not apply if you ship out of country. However, you must have a proof of shipment that the goods actually shipped to a destination outside of Canada.


But this is from the ministry of small business and revenue in British Columbia:



> n British Columbia out-of-province vendors are expected to collect and remit the province’s PST – including vendors selling goods through the Internet, who are specifically mentioned in Do you need to register as a vendor?:
> 
> "Out of province sellers must register if meet all 4 of following criteria:
> solicit sales in British Columbia through advertising or other means,
> ...


source


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## AppleAuthority (May 21, 2005)

Just read through that entire About.com article. My Dad and I were laughing through the whole thing. You have to read very closely...its pure law. Basically, the provinces say that, "Yes, you *should* collect the province's PST, and if you don't, our residents are required to remit the tax to us". You can see why a lot of Americans don't want to sell to Canada.

That article pretty much sums it up. There are a few provinces you can probably get around, as they don't mention the word "must" in their legislation. Saskatchewan for example: 



> "All persons making taxable sales in Saskatchewan should become licensed and collect the tax. Non-resident businesses *should consider* becoming licensed as a convenience to their customers. If non-resident businesses don't collect PST at the time of sale, their customers are required to self assess and remit the tax" (Saskatchewan Finance Provincial Sales Tax Common Questions).


The "should" is very convenient for the province. B.C. seems to be the most striking over the matter. In reality, the taxation really should be only necessary if you have bodies in the destination province, or your advertising (thus creating a "presence") in that province. Obviously, to be on the safe side would be to register. 

Hopefully this helps. I'm not the best person at communicating my Dad's financial advice. PM me, perhaps you could call him tomorrow.


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## SkyHook (Jan 23, 2001)

>


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## duosonic (Jan 7, 2004)

Great thread – I'm sure it will grow into a major forum very quickly. Seems there are a lot of small business people at ehmac (including me). I look forward to seeing how this develops.


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## singingcrow (May 6, 2005)

ehMax said:


> - I don't really have to collect GST, if my sales are under $30,000, but... if I sell to provinces that have HST, a harmonized sales tax, I do have to collect GST and have a business number for that. If I have that, I need to collect GST on all sales, except for provinces where they don't have GST.



Unfortunately, the GST thing is not so straight forward. As far as I understand, yes, overall $30,000 is the key, however there's another stipulation which states that if you make $3500 consecutively for 3 months you must charge the GST.


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## MLeh (Dec 23, 2005)

GST - there is an advantage to being registered - you get to reclaim all the GST you pay out on stuff related to your business. (or 50% on things that are only 50% deductable, like entertainment & meals).

PST - I sell into Saskatchewan (from BC), and just note on my invoices (as advised by my accountant): "We are not registered to collect or remit Saskatchewan Provincial Sales Tax. Any tax payable should be remitted to the appropriate authority." (it's the basic 'CYA' clause). In BC I collect and remit PST. Alberta is easiest though.

HST - NO idea.


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## ehMax (Feb 17, 2000)

SkyHook said:


> I thought I bought my video card from you about ten years ago? ATI Rage Orion.
> 
> So was that simply a closer-than-arm's-length relationship with Carbon? I don't remember Carbon being advertised at the time. I recall being very skeptical, as a matter of fact, being signup #116.
> 
> I wanted to add that I thought the sales limit for GST was creeping upwards to $36,000. Have no idea, now, where to look that up.


ehMac started out as an online store for about 6 months in 1999 and at the time was a registered business. Didn't know Carbon Computing then. When that didn't work out, I let the business registration expire. 

Wow, 7 years ago feels like a really long time now. 

You can read more history here.

[edit] - *Wait a second*.... the above link was a reply to SkyHook exactly a year ago today!!.  

You replied to it here.

???


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## MaxPower (Jan 30, 2003)

So far on my online store, I have only charges PST, GST and HST.

If the other provinces want to come after me for not charging their PST, I say good luck. As far as I'm concerned, my web store is the same as a store physically located in Ontario. My product gets shipped out from Ontario. If my store was physically in Ontario and not in cyberspace, and someone out of province bought my product, I wouldn't have to charge their provincial sales tax.


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## MaxPower (Jan 30, 2003)

Shameless Business Plug:

I sell an all natural line of sunscreens under the brand name Mexitan. Currently it is one of two commercially available 100% all natural Sunscreens on the market today.

Why all natural?



> The increasing occurrence of skin cancer in the USA is a major concern of physicians. New research shows that the active ingredients (toxic chemicals) in some sunscreens may contribute to genetic damage and skin cancer (The Scientist, Mar/Apr. 1999, page 7). Current advice on sun and skin care strongly recommends the heavy use of chemical sunscreens on the delicate skin of babies and young children, as well as adults. The consumer falsely believes a sunscreen forms an invisible protective barrier against harmful solar rays. In fact, the sunscreen chemicals can absorb the rays' energy, become energized, and chemically reactivate themselves, which can lead to chemical reaction in the skin that creates free radicals that cause DNA damage.
> 
> Dr. Marianne Berwick, an epidemiologist at Memorial Sloan Kettering Cancer Center reported at a 1998 meeting that her analysis of 16 epidemiology studies suggested that the more sunscreen a person used the higher chance of developing skin cancer. Dr. Frank Garland of the University of California, believes the increased use of chemical sunscreens is the primary cause of the epidemic of skin cancer. Dr. Gordon Ainsleigh in California believes that the use of sunscreens causes more cancer deaths than it prevents. He estimated that the 17% increase in breast cancer observed between 1991 and 1992 may be the result of the pervasive use of sunscreens over the past decade. (Preventive Medicine, Vol. 22, Feb. 1993) Professor John Moan of the Norwegian Cancer Institute found the yearly increase in melanoma in Norway had increased 350% for men and 440% for women during the periods 1957-1984, when sunscreens were introduced.
> 
> ...


If anyone has any questions please feel free to PM me at any time.


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## AppleAuthority (May 21, 2005)

MaxPower said:


> So far on my online store, I have only charges PST, GST and HST.
> 
> If the other provinces want to come after me for not charging their PST, I say good luck. As far as I'm concerned, my web store is the same as a store physically located in Ontario. My product gets shipped out from Ontario. If my store was physically in Ontario and not in cyberspace, and someone out of province bought my product, I wouldn't have to charge their provincial sales tax.


Exactly. The other provinces really can't do all that much against you. I'm sure MOST Ontario companies that have sold to B.C. or other provinces do not have a PST number for those respective provinces. It just doesn't happen. And if these laws apply to everyone, I doubt Americans will collect and remit the PST back to the respective provinces.


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## MacDaddy (Jul 16, 2001)

When I registered my business (Incorporation), I chose to also register a GST number and collect it from all provinces. While this is not required until that $30,000 mark that ehMax mentioned earlier, I was under the impression (From the kind people at Revenue Canada who I spoke with) that if I did not have the GST number and surpassed that $30,000 mark, I would be required to remit all GST payments collected up to that point.


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## MaxPower (Jan 30, 2003)

It really is in your company's best interest to register. So you have to do paperwork every quarter. Big deal. It is pretty simple at that.

What I do is I have two bank accounts. One for my sales and the other for my Taxes. When I get paid, I transfer the taxes into my tax account. This way I don't spend the money that is allocated for taxes.


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## MaxPower (Jan 30, 2003)

BTW,

Does any one have any experience with QuickBooks 6. I have used accounting programs in the past, but maybe this one is too simple for me to get my head around. I am used to using Connected which is an intermediate solution designed for multiple users.

The thing I cant figure out with QuickBooks is how do I enter expenses? I set up a vendor, etc. But when it comes time to enter the details of the expense, let's say I want to expense my gas purchase, and the total is $42, how do I get the GST in there?


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## MaxPower (Jan 30, 2003)

Another thought. Sorry for the multiple postings.

If this thread gets it's own section perhaps we can set up forums such as taxes, software, business practices/strategies etc.


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## AppleAuthority (May 21, 2005)

MaxPower said:


> BTW,
> 
> Does any one have any experience with QuickBooks 6. I have used accounting programs in the past, but maybe this one is too simple for me to get my head around. I am used to using Connected which is an intermediate solution designed for multiple users.
> 
> The thing I cant figure out with QuickBooks is how do I enter expenses? I set up a vendor, etc. But when it comes time to enter the details of the expense, let's say I want to expense my gas purchase, and the total is $42, how do I get the GST in there?


QuickBooks for Mac or PC? Also, have you tried MultiLedger? It's designed from an accountant's perspective and may be faster to get things done coming from Connected. I always found QuickBooks to be far too bloated to ram in entries quickly.


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## MaxPower (Jan 30, 2003)

Are we on a Mac or PC forum? 

QuickBooks for the Mac of course. But if I were to switch programs, I would go with Connected since I am familiar with it. But I like the exporting functions for QuickBooks when sending my stuff to my Accountants.


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## AppleAuthority (May 21, 2005)

Ok to answer your question, I pulled out this information:

*Tracking GST on bills you receive*
When you receive a bill that includes GST, enter information about the amount of GST on the bill in the detail area.

To track GST on bills:

1. In the Enter Bills detail area, in the Account column (this will be on your Expenses tab if you have the inventory feature active), choose your GST Payable account (or your Sales Tax Payable account if your GST is tracked with a sales tax item).

2. Enter the amount of the GST shown on the bill.

3. Enter your items and other expenses.


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## MaxPower (Jan 30, 2003)

Thanks AA.

That worked great. Hopefully my accounts are right. I guess I'll find out at year end.


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## GratuitousApplesauce (Jan 29, 2004)

*Sales Tax Formula*

I was just about to post a message asking if anyone had a formula for extracting the sales taxes, either PST, GST or whatever, from a receipt one may have where it's been included. I was going through a bunch of gas receipts today where the retailer didn't separate out the GST and I needed that figure for my books.

I used to have a formula written down somewhere that did that for 7% PST, but I couldn't find it today. I started looking around the 'net today looking for it, because I know others use it, but wasn't coming up with anything. 

Then just before I was about to post the message I took one more look at a CRA page and there it was buried in there, using a fractional amount (not very useful with the calculator).

So I thought I would post this useful formula for any ehMac small business people who might need it.

To separate out 6% GST (or other tax amount) from a total that includes it:
Multiply X 100 then divide by 106. (or 107, if 7%, 108 if 8%, etc.)

So $106 X 100 = 10,600
10,600 divided by 106 = $100.
$106 minus $100. = $6. GST

I remember using the formula as a percentage, which makes it one step on the calculator. From the formula above I was able to figure out the percentage.

So to find the 6% GST amount on a total that includes tax multiply it by 5.660377358% (round off depending on how many decimal places you want to enter). You will have to round the resulting figure to the nearest penny, if your calculator isn't set to do that already.

The percentage for 7% is 6.542056075%


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## SkyHook (Jan 23, 2001)

>


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## MaxPower (Jan 30, 2003)

GratuitousApplesauce said:


> ...To separate out 6% GST (or other tax amount) from a total that includes it:
> Multiply X 100 then divide by 106. (or 107, if 7%, 108 if 8%, etc.)
> 
> So $106 X 100 = 10,600
> ...


I've always used the formula:

X / 106 X 6

Where 6 represents 6% GST. You can also apply that using 8 for Ontario PST.

Works for me.


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## SINC (Feb 16, 2001)

My formula is one step shorter with the same result:

$106.00 divided by 106 times 6 = $6.00 GST

Why go the extra step?


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## MaxPower (Jan 30, 2003)

SINC said:


> My formula is one step shorter with the same result:
> 
> $106.00 divided by 106 times 6 = $6.00 GST
> 
> Why go the extra step?


OOPS. that was actually the formula I use.


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## Loafer (Jan 7, 2004)

I've been using Quickbooks Pro 2005 for the last year and being a creative type I never totally got the hang of it completely, I get by but I don't think I use it correctly.

One of the things I haven't set up properly is the employees payroll. My business partner and I simply split the cheques we receive (we're a creative studio).
I take off 6% for GST and 10% for business re-investment (software and such).
We both work from our respective homes (we have a virtual iChat office to gossip around the cooler on) so our expenses are minimal.

What I did was set ourselves up as vendors so I 'Receive Payments' in the normal way then x 0.84 to take off the necessary deductions and then divide by 2. I then just Enter Bill the exact amount for each of us......hop onto RBC banking and transfer the payments over.

Simple for us, but is there a better way to show it as salary payments baring in mind they are never equal payments, always different depending on the cheque received ?


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## Loafer (Jan 7, 2004)

ooops, nearly missed my shameless plug opportunity.....

www.sapo.ca


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## Oakbridge (Mar 8, 2005)

Loafer said:


> I've been using Quickbooks Pro 2005 for the last year and being a creative type I never totally got the hang of it completely, I get by but I don't think I use it correctly.
> 
> One of the things I haven't set up properly is the employees payroll. My business partner and I simply split the cheques we receive (we're a creative studio).
> I take off 6% for GST and 10% for business re-investment (software and such).
> ...


I'm no expert but I always thought that when it was the owners it wasn't a salary unless you are set up as a corporation. Any other form of business you receive a draw against earnings or something similar. 

Perhaps someone with more accounting experience can provide the correct method.


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## Loafer (Jan 7, 2004)

Oakbridge, 

Yeah I figured it was something like that but I'm just not all that sure how one goes about setting it up in QB.

Also, anyone know how the hell to go back and change the GST, I keep having to change it on each invoice.......stinking Conservative government costs me 2 seconds more work on each invoice now!


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## MasterBlaster (Jan 12, 2003)

.


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## ehMax (Feb 17, 2000)

MasterBlaster said:


> Learn from the King of the Internet


Ah... he is my mentor, and I am but his young grasshopper.


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## MaxPower (Jan 30, 2003)

MasterBlaster said:


> Learn from the King of the Internet


I bow to his greatness.....


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## ArtistSeries (Nov 8, 2004)

Oakbridge said:


> I'm no expert but I always thought that when it was the owners it wasn't a salary unless you are set up as a corporation. Any other form of business you receive a draw against earnings or something similar.


Owners (shareholders) can be paid in salary or dividents (up to a certain point).


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## ArtistSeries (Nov 8, 2004)

Loafer said:


> Also, anyone know how the hell to go back and change the GST, I keep having to change it on each invoice.......stinking Conservative government costs me 2 seconds more work on each invoice now!


http://quickbooksgroup.ca/[email protected]@.eefb79c/0


> To help you prepare for this change, Intuit Canada has created easy-to-follow instructions on how to adjust the tax rates in your QuickBooks program on the QuickBooks Online Community Web site.


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## Loafer (Jan 7, 2004)

ArtistSeries said:


> http://quickbooksgroup.ca/[email protected]@.eefb79c/0


Thanks!


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## Oakbridge (Mar 8, 2005)

*DayLite Productivity Presentation*

If anyone is interested in learning more about  DayLite, the #1 Productivity Application for the Mac, I'll be hosting a Small Business Workshop at the Apple Eaton Centre store on Wednesday August 30th, 2006 and Wednesday September 6th, 2006. Both are at 12:00 noon.

I'll be doing a live demo and answering any questions. Hope to see you there!


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## miguelsanchez (Feb 1, 2005)

OK a question about leasing vs purchasing a computer. I remember reading a while ago on ehmac.ca that you can write off a new computer purchase in the first year of operating your business (in my case, I am a self-employed contractor). Can anyone clarify the rules for claiming computer and other expenses when self-employed? 

I was considering leasing a new computer but I can probably save a bit of money by purchasing one and claiming it all this year.


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## groovetube (Jan 2, 2003)

I have a small business and I did purchase computers before, but leasing gives you the advantage of writing off all of your lease payments you pay out for the year. Buying one you pay out all the dollars but you can't write the whole amount in your year off.

btw one of the best things I ever did was find a really good accountant. Sooooo much easier.


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## ehMax (Feb 17, 2000)

Going to resurrect this thread. 

Question for small business owners who work from home, who have to occasionally accept courier shipments if they are not home. Is there any solution for that?

Is there like a outdoor lockable box you can buy that couriers are used to using, or are there local services that accept shipments? 

I found *this courier drop box* online, but perhaps I might need to occasionally accept larger shipments.


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## SINC (Feb 16, 2001)

I have an arrangement with two neighbours, one each side and If I am away, I leave an envelope addressed to the courier company taped below my doorbell instructing them to take it next door, right or left depending on who is home that day, I issue a letter of permission in that envelope to be kept by the courier with the identity of the neighbour and my full authority to deliver it there, accepting responsibility for the package once the courier does that. It has worked for me on many occasions and I do my neighbours small favours in kind when they need help as well.

I advised the courier company by phone that their driver could expect to find the envelope that day as well.


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## ehMax (Feb 17, 2000)

SINC said:


> I have an arrangement with two neighbours, one each side and If I am away, I leave an envelope addressed to the courier company taped below my doorbell instructing them to take it next door, right or left depending on who is home that day, I issue a letter of permission in that envelope to be kept by the courier with the identity of the neighbour and my full authority to deliver it there, accepting responsibility for the package once the courier does that. It has worked for me on many occasions and I do my neighbours small favours in kind when they need help as well.
> 
> I advised the courier company by phone that their driver could expect to find the envelope that day as well.


Thanks SINC, that's good advice. 

Also looking for a method that's more secure, where shipment could be locked, or delivered to a secure, holding location. Maybe I can talk to some local businesses.


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## John Clay (Jun 25, 2006)

ehMax said:


> Thanks SINC, that's good advice.
> 
> Also looking for a method that's more secure, where shipment could be locked, or delivered to a secure, holding location. Maybe I can talk to some local businesses.


If you're still working at Carbon, I'd get it delivered there.

Pretty common amongst our clients to have personal packages delivered to the office, where someone can sign for it.


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## kps (May 4, 2003)

For around $230 per year you can rent a PO box at the UPS Store (formerly Mailboxes Etc.). They will accept packages for you from any courier co or the postal service. They'll even email you when the shipment arrives. Then, it's only a matter of picking it up at your convenience.

Also protects your privacy...as an example, my domain names are registered to the UPS Store address. 

Only issue may be with some companies who will ship only to the billing address on the credit card. If that's your payment method. I've had orders refused even though I specifically told the credit card issuer to accept that address. 

Another issue could be the employee accepting a damaged package without making a notation with the delivering courier. But then, if you have a courier just drop it in a box at your house, you'll have the same issue.


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## simon (Nov 2, 2002)

ehMax said:


> Thanks SINC, that's good advice.
> 
> Also looking for a method that's more secure, where shipment could be locked, or delivered to a secure, holding location. Maybe I can talk to some local businesses.


Why not PakMail or the UPSstore? Even getting a P.O.Box at your local Shoppers will be a secure way to receive packages, just have a second address you use just for that.


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## javaqueen (Feb 5, 2012)

My FedEx guy and my UPS both tell me to leave them a note signed and they will leave the package in-between my doors......also I do have great neighbours who will accept it if needed


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## macintosh doctor (Mar 23, 2009)

Courier shipments:
I have a vault with one of the big three on the side of the house.. and I copied the key for the other 2.. I have dedicated drivers so that helps.. plus buying them gifts during Christmas help.. [ thats a write off too LOL ]
to receive a vault you must send and receive a least 5 shipments per day - those were the rules when I got mine.


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## smashedbanana (Sep 23, 2006)

macintosh doctor said:


> 2. you own the name across canada - no ifs ands or buts about it.. [last thing I want is a shop with the same name opening up in BC or manitoba - with a bad reputation tainting ours..


I don't think that is quite true. Registering you corporation and owning the trademark are two different things.

If you company is registered as ABC Computing. I can't register ABC computing but I can use my numbered company (i.e. 1234567 Ontario Inc.) and use the O/A (operating as ABC Computing

You will need the trademark/copyright to send me a cease and desist. 

Similarly you will need to the trademark to seize a domain name (i.e. abccomputing.com)


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## Sonal (Oct 2, 2003)

ehMax said:


> Going to resurrect this thread.
> 
> Question for small business owners who work from home, who have to occasionally accept courier shipments if they are not home. Is there any solution for that?
> 
> ...


We rent a PO Box, and use that as a permanent business address. They accept any courier packages for us.


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## WCraig (Jul 28, 2004)

macintosh doctor said:


> I will share my experiences.....


Sorry, but *much of what was written here is flat out wrong*. I'm not going to sift through and correct all the errors and sort out the half-truths. This is a case where uninformed ramblings on the internet could be harmful to one's financial health. Get professional advice. 

Craig


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## macintosh doctor (Mar 23, 2009)

smashedbanana said:


> I don't think that is quite true. Registering you corporation and owning the trademark are two different things.
> 
> If you company is registered as ABC Computing. I can't register ABC computing but I can use my numbered company (i.e. 1234567 Ontario Inc.) and use the O/A (operating as ABC Computing
> 
> ...


as for Domains on the net.. I did not register until I found a domain that was my corporate name and bought .ca/.net/.com (s) then I searched out the Canada Corporations website to see if the same name was available across Canada.. ( some costs were involved but less headaches after ) - took a very long time, to come up with a name on the net and real life corporate world that was not taken.
as for the Fed vs Provincial thing :
[seems the Fed version is protected slightly better ]
1. Corporate Name

Federal incorporation: Federal Name Granting Guidelines are very strict. Your name is tested through the Federal Database against names registered all across Canada. The name decision is made by government examiners. Finding an available name is more difficult.

Ontario incorporation: Your name only needs to be available under Ontario laws. It is less likely being rejected. However, there is a greater chance that you may be approved for a name that is already in use in other provinces in Canada. It is more difficult to expand outside Ontario if your corporate name is already in use elsewhere.

2. Name Protection

Federal incorporation: Your corporate name is protected across Canada. You can enjoy a very strong national protection that is second only to the protection offered by registered trademark. Despite this, you may still need to meet provincial requirements when you conduct business in different provinces.

Ontario incorporation: Your corporate name is only protected in Ontario. It is more difficult to expand into other provinces especially if your corporate name is used by other businesses in other provinces.



WCraig said:


> Sorry, but *much of what was written here is flat out wrong*. I'm not going to sift through and correct all the errors and sort out the half-truths. This is a case where uninformed ramblings on the internet could be harmful to one's financial health. Get professional advice.
> Craig


I have an accountant, plus have been audited by every level of department.. if they did not like the books or how we operate, I am sure they would of shut us down or fined or request money back.. As I mentioned I shared my experiences.. so far - no ones shut us down or fined us.. But as I mentioned : I always recommend you have CA or CGA what ever works for you, keep your books proper; operate properly and you should be fine and when they audit you [ and they will, its not if -its when] - don't look at it as a curse, look at it as a reassurance that your doing things properly.. Plus its a free education in what the different levels of governments expect.. 
I am actually glad we have HST.. because I always hated everyone saying they are PST exempt and I always refused (unless they were reselling our services or products ) and thank God I did.. when I was PST audited they reassured me that I was doing the right thing. Now with HST every one pays, no confusion.


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## ehMax (Feb 17, 2000)

kps said:


> For around $230 per year you can rent a PO box at the UPS Store (formerly Mailboxes Etc.). They will accept packages for you from any courier co or the postal service. They'll even email you when the shipment arrives. Then, it's only a matter of picking it up at your convenience.
> 
> Also protects your privacy...as an example, my domain names are registered to the UPS Store address.
> 
> ...


This is PERFECT and what I've been looking for. There is a *UPS store just a couple of blocks from me* that will do the trick. 



> *When you use the mailbox services at The UPS Store, you can enjoy these benefits:
> 
> 24-hour access – Collect your mail only when it’s convenient to you.
> *
> ...


Thanks for the advice. For some reason, I just though of UPS store like Purolator location, just for dropping off stuff.


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## ehMax (Feb 17, 2000)

javaqueen said:


> My FedEx guy and my UPS both tell me to leave them a note signed and they will leave the package in-between my doors......also I do have great neighbours who will accept it if needed


Would work good for personal stuff, but I need more security.


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## Macfury (Feb 3, 2006)

macintosh doctor said:


> 1. cheaper to do


It is more expensive to create a federal corporation.



macintosh doctor said:


> - you pay less income taxes .. business tax is a flat rate i think in the 30-35%.
> vs non corp is based on your total personal income and scaled..





macintosh doctor said:


> 2. you own the name across canada - no ifs ands or buts about it.. [last thing I want is a shop with the same name opening up in BC or manitoba - with a bad reputation tainting ours..


You don't own the name. Trademark trumps corporate registry every time. Other businesses can't register their corporation under the name you have chosen. However, they can operate under that name if the name is not trademarked.



macintosh doctor said:


> - you pay less income taxes .. business tax is a flat rate i think in the 30-35%.
> vs non corp is based on your total personal income and scaled..=


You can pay less income tax by deciding whether to be paid in salary, or in dividends. You cannot reasonably take all of the money out in dividends.




macintosh doctor said:


> you can't write off as much - hardly any. the more you make the more you pay..
> - with corporations: you can write off a portion of your house, cars and other living expenses.
> - not to mention take out clients and part of it is a write off.
> you don't have to make $30Gs as you expressed.. being a corporation is far more beneficial than not.
> - buying a computer is depreciated over years or leasing equipment is a 100% write off, including the taxes on it.


All of these deductions are available to an unincorporated business.




macintosh doctor said:


> - af for out of provincial sales that you should refer to your accountant - because I think you have to collect based on the area sold. ( quebec and pei - double tax - tax on tax)
> - as for out of country sales. you have two options charge them the taxes HST or don't - take an immediate loss then when you file, write off the un collected taxes..
> - I honestly recommend a good account for any major advise, its a write off too plus they know the black and grey areas.


These rules apply whether incorporated or not.



macintosh doctor said:


> don't forget you can lease your cars and expenses are write off depending how much of it is used for work.. [ value can be up to $800 per month for a car lease and you can have multiple cars.


The same, whether corporate or not.



macintosh doctor said:


> One thing I did learn - never ever do it at your place.. do it at the accountants.. because they do judge a book by its cover.. and if you have a nice place - bias is set and your done.. LOL ]


Never thought of this one. Might be something in that.


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## kps (May 4, 2003)

ehMax said:


> This is PERFECT and what I've been looking for. There is a *UPS store just a couple of blocks from me* that will do the trick.
> 
> Thanks for the advice. For some reason, I just though of UPS store like Purolator location, just for dropping off stuff.


They used to be Mailboxes Etc. then UPS bought them out and rebranded. Most are independent franchises so services and customer service may vary a little. 

A small, but important tip: don't use P.O. Box nnn, instead use "Suite", Ste., Unit, in any of your orders or if you're printing stationary or business cards. Most couriers will not deliver to and many companies will not ship to a P.O.Box address.


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## smashedbanana (Sep 23, 2006)

Macfury said:


> You don't own the name. Trademark trumps corporate registry every time. Other businesses can't register their corporation under the name you have chosen. However, they can operate under that name if the name is not trademarked.


Macfury I believe that is what I said. 

I am sorry but you will not be paid for this submission.


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## Macfury (Feb 3, 2006)

smashedbanana said:


> Macfury I believe that is what I said.
> 
> I am sorry but you will not be paid for this submission.



Yes, you not only said it, you said it better. I worked too long on crafting my response.

Smashedbanana for the win!


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## macintosh doctor (Mar 23, 2009)

Macfury said:


> It is more expensive to create a federal corporation.
> .


It cost less than $300 do it online, vs Ontario It will run from $150 to $300 more.
Do the research.


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## Macfury (Feb 3, 2006)

macintosh doctor said:


> It cost less than $300 do it online, vs Ontario It will run from $150 to $300 more.
> Do the research.


Only in Ontario--all other provinces charge an Extra-provincial Registration Fee that makes federal incorporation more costly.


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