Canadian Doulas~ How does business work?

AmyD · 08-08-2007, 09:17 AM

Just wondering how you handle the business aspects of your doula business. How does it work for taxes, registering business name, etc?

TIA!
Amy

doula Michele · 08-08-2007, 09:24 AM

I have never worried about it, because I have never made enough to even call it a business.
This year is a different story though.
I don't have a business name, so I have not registered it.
I just keep track of income and expenses, and Quick Tax does the rest. My husband is also self employed and so I do the books for that. We just pay our taxes at the end of the year. But you can contact revenue canada about setting up to pay monthly if you like.

OntarioDoula · 08-27-2007, 06:46 PM

Hm. Please don't quote me on this as I am not 100% certain but I think a person is allowed to earn $3000 a year before needing to pay taxes on that income. This is something I'm looking into myself so I'd be interested in finding out the definitive answer. Can you check with your local small business resource centre? They'd likely know how to go about all these steps.

familyway · 09-01-2007, 12:37 AM

Hey Amy! How are things in NB? I'm starting the whole 'registration' thing in the next few weeks so if you e-mail me (or even drop me a line here or on facebook), I can keep you posted on my progress as I wade through the red tape. I'm willing to bet the NB and NS are set up pretty much the same way

Caroline · 09-05-2007, 02:55 PM

I do believe that OntarioDoula is correct. I believe that you do not have to pay taxes until you earn over $30,000 per year.

Definitely your Small Business office will be able to help you out. Good luck!

birthhands · 12-02-2007, 01:41 PM

I think the "$30,000" amount may apply to when you have to start charging and paying GST, not income tax. But I'm not certain either. I started out as a sole proprietorship and I'm definitely going to change to a Ltd.liability company in January. That will make things even more interesting!

doula Michele · 12-02-2007, 02:32 PM

Yes, the 30,000 is for GST. I am not sure what the basic excemption is. Maybe 5 or 7000$.

Carla M. · 03-09-2008, 09:34 PM

I'll ask my husband, who's a Chartered Accountant, what the basic rules are and post when I get some feedback from him. I'm just starting out, as well, so I have to decide how (and if) I want to incorporate etc.

Carla M. · 03-10-2008, 09:36 PM

I spoke to my Dh and he says that if you aren't incorporated, or a limited liability company, then you would include your income and deduct your business expenses from your personal income tax. You have the same basic personal deductions before you have to pay taxes on your income. If you have one of the income tax software programs it will walk you through the steps.

If, however, you have incorporated in some fashion, then you have to file a business return every year by the end of June, but taxes are due at the end of February. Even if after expenses you have only made a profit of $1 you have to pay taxes on that dollar. Again, if you have one of the income tax software programs designed for business it will walk you through it, but my DH suggests you spend the money to work with an accountant for at least the first year to make sure everything is set up properly.

The benefit, he says, to forming a proper company and having it's name on your contracts is that if somebody should decide to sue you they are more likely to sue your company. You would need to talk to a lawyer or do some more research about the various forms of incorporation and what the benefits and drawbacks to each type are. Insurance is also a whole different issue that you would need to look into and get professional advice on.

You might want to check with CAPPA CANADA and see if they have any information, as well.

Hope some of this helps.

Supermomma · 04-07-2008, 10:23 PM

Ohh, thanks Amy for this post! I'm just starting out this year and am keeping eceipts for everything, but because I am not certified yet I wasn't even sure if I will be having it as business or whatever.
What is the diference between a limited liability and a proper company. In laymens terms?

mirandamary · 04-27-2008, 06:47 PM

Any updates on this thread? I'm very interested to see what other Canadian Doulas are doing

scarborogal · 04-28-2008, 09:53 AM

Quote:

Originally Posted by Carla M.

I spoke to my Dh and he says that if you aren't incorporated, or a limited liability company, then you would include your income and deduct your business expenses from your personal income tax. You have the same basic personal deductions before you have to pay taxes on your income. If you have one of the income tax software programs it will walk you through the steps.

If, however, you have incorporated in some fashion, then you have to file a business return every year by the end of June, but taxes are due at the end of February. Even if after expenses you have only made a profit of $1 you have to pay taxes on that dollar. Again, if you have one of the income tax software programs designed for business it will walk you through it, but my DH suggests you spend the money to work with an accountant for at least the first year to make sure everything is set up properly.

The benefit, he says, to forming a proper company and having it's name on your contracts is that if somebody should decide to sue you they are more likely to sue your company. You would need to talk to a lawyer or do some more research about the various forms of incorporation and what the benefits and drawbacks to each type are. Insurance is also a whole different issue that you would need to look into and get professional advice on.

You might want to check with CAPPA CANADA and see if they have any information, as well.

Hope some of this helps.

Carla, does it matter what type of company you set up for the suing part. I don't want to be incorporated but would like to register my business as a limited, sole proprietorship. I think. If you hubby has any advice on that it would be appreciated.

Breathe Easy Doula · 04-28-2008, 01:36 PM

Do you know if my certification from the States would be good in Canada?

scarborogal · 04-28-2008, 04:52 PM

Quote:

Originally Posted by Breathe Easy Doula

Do you know if my certification from the States would be good in Canada?

Sure why not? I think for many they choose doulas who are experienced. Certification doesn't seem to be the be all and end all.