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Brothers open up mobile DJ business in GTA
Expert: Michael Fromstein
My brother and I have just started a mobile DJ business in the Greater Toronto Area, do we need to register the business as general partnership? Should PST and GST also be collected from customers?
Michael Fromstein answered:
A general partnership is created by carrying on business as a partnership whether or not you register it. However, if you want to invoice in the name of the partnership, you will need to register it to be able to open up a bank account. You will then need a CRA business number to be able to report the income annually on your tax returns.
You need not collect GST until your invoices reach $30,000 a year. You only charge PST when you sell tangible property, such as cd's. In July, the GST rate will increase to 13 per cent (as the HST) and there will not be any more PST.
About the author
Michael Fromstein is a tax specialist with Integrated Professional Specialist Services.