How easy is it to setup a buisness ?
Oct 24th 2009 | 8:14 am
#16
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Joined: Feb 2009
Posts: 362
Re: How easy is it to setup a buisness ?
But I give you that. But don't start saying things you know nothing about. Check first. Google can often save you from some embarrassment. 
Oct 24th 2009 | 8:16 am
#17
Joined: Sep 2008
Posts: 12,830
Re: How easy is it to setup a buisness ?
We don't give any personal guarantees, but do have a high level of equity in the company. Any financing we do is asset based. Don't do business with a supplier that wants a personal guarantees either. Has not been an issue for us so far.
Oct 24th 2009 | 8:19 am
#18
Joined: Sep 2008
Posts: 12,830
Re: How easy is it to setup a buisness ?
Would like a link to illustrate your method of handling GST, never heard of it being done that way.
Oct 24th 2009 | 8:35 am
#19
Just Joined
Joined: Oct 2009
Posts: 8
Re: How easy is it to setup a buisness ?
I would love to have & operate my own boutique (in Ontario), but my main problem would be not knowing anything about running a small business, so I will take Aviator's advice & take a course.
Oct 24th 2009 | 8:43 am
#20
Forum Regular
Joined: Feb 2009
Posts: 193
From: Barrie but after the winter !
Oct 24th 2009 | 8:49 am
#21
Lost in BE Cyberspace
Joined: Aug 2005
Posts: 13,402
From: South of Calgary
Re: How easy is it to setup a buisness ?
Oct 24th 2009 | 9:45 am
#22
Joined: Sep 2008
Posts: 12,830
Re: How easy is it to setup a buisness ?
It's never been an issue for us or caused a problem. Many also take Visa so we get lots of points too.
Last edited by Aviator; Oct 24th 2009 at 10:03 am.
Oct 24th 2009 | 10:01 am
#24
Joined: Sep 2008
Posts: 12,830
Re: How easy is it to setup a buisness ?
Yes you are right, I erred in making an assumption based on the provinces we deal in, which was misleading.
I am however waiting for the link to the GST info you mentioned, I am interested in finding out more as it would simplify our GST returns and book keeping no end doing it this way. Google might help!
What's a Yer and a wert?
I am however waiting for the link to the GST info you mentioned, I am interested in finding out more as it would simplify our GST returns and book keeping no end doing it this way. Google might help!
What's a Yer and a wert?
Last edited by Aviator; Oct 24th 2009 at 10:20 am.
Oct 24th 2009 | 10:41 am
#25
Lost in BE Cyberspace
Joined: Aug 2005
Posts: 13,402
From: South of Calgary
Re: How easy is it to setup a buisness ?
Depends on what you call significant, or maybe you shouldn't assume (not good accounting practice to make assumptions), high 6 figures? Maybe they think we're trustworthy and value our business. We buy lots, they are national and international organisations, in Canada, US, Australia and Europe.
Then they have poor business sense. Providing supplies with a value of $100,000+ to a start up corporation without obtaining personal guarantees is a very risky thing to do (particularly one that refuses to provide personal guarantees when asked). I appreciate that you may have had to build up a relationship with them for a period of time before they did so but that iss not relevant to the OP's position.
Oct 24th 2009 | 10:59 am
#26
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Joined: Feb 2009
Posts: 362
Re: How easy is it to setup a buisness ?
Yes you are right, I erred in making an assumption based on the provinces we deal in, which was misleading.
I am however waiting for the link to the GST info you mentioned, I am interested in finding out more as it would simplify our GST returns and book keeping no end doing it this way. Google might help!
What's a Yer and a wert?
I am however waiting for the link to the GST info you mentioned, I am interested in finding out more as it would simplify our GST returns and book keeping no end doing it this way. Google might help!
What's a Yer and a wert?
Yer like i wanna to help you now. 
Oct 24th 2009 | 11:06 am
#27
Joined: Sep 2008
Posts: 12,830
Re: How easy is it to setup a buisness ?
Then they have poor business sense. Providing supplies with a value of $100,000+ to a start up corporation without obtaining personal guarantees is a very risky thing to do (particularly one that refuses to provide personal guarantees when asked). I appreciate that you may have had to build up a relationship with them for a period of time before they did so but that iss not relevant to the OP's position.
I agree for a new business the chances of getting credit without personal guarantees are next to impossible. From institutional lenders though, it does depend on what security is offered. For years we used to give credit without guarantees, have not had one bad debt. Alas in the current economic climate we are getting more cautious and have just had to start taking credit aps and guarantees from new customers that we don't know.
Oct 24th 2009 | 11:07 am
#28
Joined: Sep 2008
Posts: 12,830
Re: How easy is it to setup a buisness ?
There are three ways to deal with ITCs, the regular way when filing a return and tracking inputs and outputs and two easy ways, the simplified method (under $500,000 in sales) and the quick method (under $200,000 in sales). There is no allowance for claiming a GST exemption at POS other than for first nations with a status card. You may be well advised to have a chat with your accountant.
Last edited by Aviator; Oct 24th 2009 at 11:26 am.
Oct 25th 2009 | 3:13 am
#29
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Joined: Feb 2009
Posts: 362
Re: How easy is it to setup a buisness ?
There are three ways to deal with ITCs, the regular way when filing a return and tracking inputs and outputs and two easy ways, the simplified method (under $500,000 in sales) and the quick method (under $200,000 in sales). There is no allowance for claiming a GST exemption at POS other than for first nations with a status card. You may be well advised to have a chat with your accountant.
Purchases Not Subject to GST
The Purchasing Department will generally indicate the GST status on purchase orders. When in doubt as to whether GST should apply on an invoice, contact either Purchasing or Accounting Services. The following items may be generally purchased by the University without paying GST:
* salaries, wages and most employee benefit payments;
* interest, insurance premiums and most other financial services;
* most groceries;
* purchases from "small suppliers", being individuals and companies with less than $30,000 of taxable sales in the previous 4 calendar quarters.
* purchases by one University department from another;
* purchases from TRIUMF, or the federal Centres of Excellence;
* most purchases of services from other registered charities, including all Canadian university inter-library loans, consulting fees, etc.
* goods provided by a registered charity including all universities in Canada, at nominal cost being where no markup has been added by the seller;
* Provincial sales and hotel room taxes;
* voluntary tips and gratuities;
* penalties and fines;
* B.C. Ferry and Coquihalla Highway, etc. provincial tolls; and
* airfares from Canada to destinations outside continental U.S.A. and Canada.
* salaries, wages and most employee benefit payments;
* interest, insurance premiums and most other financial services;
* most groceries;
* purchases from "small suppliers", being individuals and companies with less than $30,000 of taxable sales in the previous 4 calendar quarters.
* purchases by one University department from another;
* purchases from TRIUMF, or the federal Centres of Excellence;
* most purchases of services from other registered charities, including all Canadian university inter-library loans, consulting fees, etc.
* goods provided by a registered charity including all universities in Canada, at nominal cost being where no markup has been added by the seller;
* Provincial sales and hotel room taxes;
* voluntary tips and gratuities;
* penalties and fines;
* B.C. Ferry and Coquihalla Highway, etc. provincial tolls; and
* airfares from Canada to destinations outside continental U.S.A. and Canada.
Oct 25th 2009 | 9:22 am
#30
Joined: Sep 2008
Posts: 12,830
Re: How easy is it to setup a buisness ?
http://www.finance.ubc.ca/ap/GSTOverview.cfm
Purchases Not Subject to GST
Purchases Not Subject to GST
But this is not what you said originally, you said by giving your GST number you did not pay GST at the POS, which is entirely different. You may also be better to get your references from the CRA website than a university. CRA make and enforce the rules.
There are some items that are exempt of GST as listed in the link you provided, however the items you listed earlier are not exempt items. If you purchase from a vendor who is below the GST threshold and not registered you don't need to give them any numbers, they should not be charging GST as a separate tax.
Last edited by Aviator; Oct 25th 2009 at 9:32 am.
