American Immigrant - Open Work Permit - Freelancing Questions

[BrassDragon]

Hello!

After finally getting my work visa last month (After more than a year of waiting...) I landed a job at the gas station next door to my appartment.

Lasted about two weeks.

Now, I'm trying to turn my writing into a business-- but that comes with it's own bag of worries, some of which I'm asking about here. For example:

I know I'm a sole-proprietorship, but I have two paypal accounts - one business, one personal. The 'Business Name' on my paypal is 'Ashton Writes'. Do I need to register this anywhere? Where would I put this on my personal tax form?

My work visa is open, barring educational pursuits or sexual (as if I'm attractive enough for that...) work. Is there anything extra I need to fill out when I file my taxes? Would it be easier for me to make an American business paypal and use that instead?

 

[NetMecca]

I know I'm a sole-proprietorship, but I have two paypal accounts - one business, one personal. The 'Business Name' on my paypal is 'Ashton Writes'. Do I need to register this anywhere? Where would I put this on my personal tax form?

As a sole proprietor you technically need to get a business number (as a sole proprietor) which will also give you the opportunity to register you name. Having a business number will be helpful for getting insurance, bank accounts and several other things. Name registration is mostly just if you care about protecting your business name (preventing others from using it). As a sole proprietor all income is treated as personal income as well, so as long as you declare the income properly not sure it matters. Also if your income reaches a certain threshold, you will have to register for HST / GST. That is where your business number will be important.

My work visa is open, barring educational pursuits or sexual (as if I'm attractive enough for that...) work. Is there anything extra I need to fill out when I file my taxes? Would it be easier for me to make an American business paypal and use that instead?

No matter where your paypal account is held, you will still be required to declare your income. To get a definitive answer I would spend a $100 or $200 with an accountant to make sure you have all your bases covered. With Paypal, despite agreements between Canada and US if you are fussy about which currency you trade in US$ vs CDN$ you may need to spend some time on finding a way to minimize currency conversion costs. Paypal will not pay in US dollars for Canadian accounts, and they then use their conversion when they pay into your bank account (you receive CDN$ no matter which currency you trade in). They are somewhat expenses. If you are paying money from your business paypal account into your own account you will also have to have bank account name that matches your paypal account. So registration of your name will likely become important for at least that reason. You cannot open a bank account in a name that is not registered (even as a sole proprietor).

Hope this helps. Good luck