At what point am I a business and have to pay taxes?

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JackieTheBudgie
Feb 04, 2017 01:42 PM 0 Answers
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JackieTheBudgie
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IMPORTANT INFO: I am a minor and do not have any current sources of sustainable income. I have no job and just want to make a little money from a hobby. I am an Albertan resident in Canada. I noticed the personal tax exemption for 2017 is 4,050$. Does this mean, as a minor and hobbyist, I don’t have to declare income or pay taxes if I make less than 4.050$ a year off of my website?

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If you are selliing a product or service to others for profit you are a business. It doesn’t matter if you sell a few items or provide a fee services. There are different entities as well. If you sell under your personal name you will pay taxes under your name. If you have a business name you need to obtain a fictitious business name such as Jackies Art. It doesn’t matter if the money is earned in a foreign country you still will owe taxes as it’s income from whatever source derived including illegal products or services. We are based in USA and are answering based on US tax Code. Canada most likely has similar provisions. When operating from home you need to check the zoning laws where you live. Being a minor means you are unable to enter into contracts but bring in business requires taxes. You mentioned an Alberta exemption. I would contact an accountant in Canada to confirm that the same laws as US apply. You have a great opportunity to be in business and there are requirements.

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