Do I need to form a business?

[kulza]

I have two machines and I'm looking to get them located.

I know that licenses are $15 per year.

Now, do I need to form a business to do this? Do I need a business name, insurance etc?

Or is there a certain number of machines you must own or a level of income you have to make before you're required to form a business?

If this has already been discussed, please point me to the thread.

Thanks,

Michael

[lurker]

Hi Michael,

Someone may come along with more experience than me, until then let me suggest this.

You should probably check with your tax commission, and local city chamber of commerce, or whatever you call them up there in Canada.

They can be a big help and are there to serve you.

I doubt many people here will know about the formalities of starting up a vending business in Canada. Maybe somebody will, but until then, this is all the help I can offer.

Good luck,

Dave

[T BIRD]

Wheres Grumpy been everyone.  He can help Michael. Grumpy lives in Canada.  Send him a PM Michael.

[West Coast Vend LLC]

The main reason to form any kind of company, LLC, INC. etc. is it will protect your personal assets from being taken from you if anyone gets sick or hurt with products that came from your vending machines. It's insurance, but like any insurance, you may never need it, but if you are planning on turning this in to a real business you should start thinking on these lines, before you grow too large. Johnny has the right idea, you should contact Grumpy first and see what he is doing. The laws in Canada may be different than here in the States.

Gary

[grumpy]

Grumpy is HERE!

It does not matter what type of business you start, when it comes to incorporating an accountant and a lawyer are great sources of information. That being said, I own an incorporated business (other) but have not incorporated bulk vending as of yet.

Reasons for incorporating today will mostly be based on tax advatages as all of the other typres of insurance that a corporation used to offer are all but gone. The directors of corporations have been held personaly liable, all finacial institutes in Canada will ask for a personal gurantee. The only real benifits are tax advatages and some protection from suppliers.

I know this is really simplified but the real asdvice comes from an accountant or lawyer.

Grumpy

PS

I do have liabilty and business insurance.

Check my tag line for how many machines and locations I have and I'm a sole proprietor.

[grumpy]

Oh one more thing, check with RST in Manitoba and see if you need to submit provincial sales tax. GST is not required as long as you stay below $0.27 I think (I know a quarter vend is safe just not sure on the breaking point)

The business can be ran under your personal name for tax puposes, call it anything you like without trademark infrigements.

Grumpy

[kulza]

Allright, so I called the city licensing branch, and to start a business you need:

-Home-based business license

-Home occupation permit

-vending permits (per machine)

Did anyone else have to go through this kind of stuff?

Damn the government bureaucracy!