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Hi everyone i am new here and to dropshipping also. My question is about getting a tax id in Canada. I am a little confused about this because i am not sure if i have to have a registered business name before I can get a tax id? Are these two separate things? Does that mean i need to register a business before i can apply for a tax id? Please help

Ok after researching this i think i figured it out. I have to register a sole proprietor business with the government of canada before i can get a tax id. Correct me if i am wrong though. This brings me to another question, Does the name of the ecommerce website i want to make have to be the same name of the business name i registered?

Hi Bm2282,

Welcome to SaleHoo :)

Yes, you are basically on the right track. As for your business name and ecommerce website, there is no requirement that they should be the same but as a sole proprietor it would make things simpler if you used the same name.

There are actually 3 elements that you have to consider when brainstorming for your business name, these are the distinctive element, descriptive element and the legal ending. To learn more about how you can secure the right business name as well as figure out if you will incorporate provincially or federally please refer to our guide -

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Hope this helps :) Should you have any further concerns please let us know right away!

Cheers

Does the name of the ecommerce website i want to make have to be the same name of the business name i registered?

Ideally yes, because if somebody else already owns the rights to the Web domain for the name that you have selected, it will be difficult for customers to find you and you may end up sending your slice of business their way. You also need to check first if the domain is already taken, and that means you need to choose a different business name. :)

Thank you for your help Richelle and Irene i am learning as i go lol

You're welcome Bm2282. Irene and I are always happy to help out our members :) So if you need help with something else, please don't hesitate to ask!

Cheers

9 days later

If you are starting out, you don't need to register for a GST/HST number. If you don't, then you can't charge the end user tax. You will fall under the small supplier category.

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You do not have to register if:

- your only commercial activity is the sale of real property, otherwise than in the course of a business; or

- you are a non-resident who does not carry on business in Canada.

- Small supplier.

If you are a small supplier and do not have to register if you meet one of the following conditions:

- If you are a sole proprietor, your total revenues from taxable supplies (before expenses) from all your businesses are $30,000 or less in the last four consecutive calendar quarters and in any single calendar quarter.

- If you are a partnership or a corporation, the total revenues from taxable supplies (before expenses) of the partnership or corporation are $30,000 or less in the last four consecutive calendar quarters and in any single calendar quarter.

and

Voluntary registration

If you are a small supplier and you are engaged in a commercial activity in Canada, you can choose to register voluntarily, even though you are not legally required to do so. If you register voluntarily, you have to charge and remit GST/HST on your taxable supplies of goods and services, and you can claim ITCs for the GST/HST you paid or owe on purchases related to these supplies. You have to stay registered for at least one year before you can ask to cancel your registration. For more information, see Canceling your registration.

If you choose not to register, you cannot charge your customers GST/HST, and the GST/HST you pay on your business purchases becomes a cost for which you cannot claim ITCs.