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Hi everyone,
I'm an art instructor with more than 7 years of experience teaching art to kids & teens, I just had my first child and I'm thinking of opening an unlicences home based day care in Ontario in April. I red about the regulations in ontario, but I'm not sure if i have to register a business or I can just work under my own name and claim my income in my personal tax return? If I want to register a business name should I register it as a Sole Proprietorship or a corporation?
Thank you
Hi. You can do either one. For me was easy to work under my name and claim it with my personal taxes. If you open as a registered business then my accountant explained that most likely I had to open a separate accounts and get separated receipts (ex. Groceries, etc) but, if you go under your name then the deductions are a percentage of your receipts.
Personally I would recommend to open under your name and make sure to comply with the regulations no more than 5 kids and only two under two including your own. Most unlicensed home daycares aren't registered as a business.
Its up to you if you want to get an Ontario business license (business number)
you can use this business number on your receipts instead of your SIN number as long as you are willing to give your SIN number to CRA if they request it.
I got a Ontario business licensed as I feel that it show I am a professional in the business for the long hull. But its not required.
You can register for a Ontario Business Licensed at Service Ontario
you are not a corporation, you are a Sole Proprietorship since yo are the only owner of your business.
....I got a Ontario business licensed as I feel that it show I am a professional in the business for the long hull. But its not required.*....
I agree it might look professional but lately the ministry of education have also rised awareness about this situation to parents, they found operating home daycares as centres with only licensed businesses (misleading parents thinking that they were legal).
If the intention is to make it look or sound proffesional then most likely you need to make a career of it. Ex. Early Childhood Educator Diploma and you have to be registered with the College of early childhood educators in Ontario, if potential parents need to screen or check it out with a professional regulatory body in Ontario they can do so, the college of early childhood educators (CECE); have a professional Registry, parents and anyone is able to search and pull information of aNY Registered Ece. The registry shows if that proffesional has had faults or offences or if his/her diploma haD been cancelled and also the reasons. Actually, every childhood educator is obligated to become Registered to become part of the proffesional legally regulatef body, if an early childhood educator is using the tittle with out being registered has a fine. The college is also asking the public to be aware of it, only Registered Early Childhood Educators can use the tittle to advertise even in homedaycares.
I have interviewed parents that have visited homes that showed this "bussiness lisence" also with the intention of operating as a Licensed home. I think the ministry of education is also aware of this and I believe it will also change. They are trying hard to centralize information and suspend any miss leading information to new parents.
I hope this information helps.
Thanks for your complete answer.
So if I decide to work under my own name, can I still use a commercial name for my daycare on my Ads? Is that legal?
As I understand from Canada revenue website, if I work as solo without registering a business I'm not entitled to charge HST. CORRECT?