HST – Proprietors Are Personally Registered

A business person who is registered to collect HST and is not incorporated is personally registered. Sounds obvious – but what does that mean? This means that anything that this individual bills must have HST added. I have had clients who believed that they could register one proprietorship but not another.

For example, they have a consulting business and they walk dogs. The consulting business makes more than $30,000 in revenue and is registered. The dog walking business bills less than $10,000 and the owner thought they did not have to register.  Both of those activities must have HST charged when bills are rendered because they are proprietorships. When you look at a business number you see the RT0001 after the number if you have more than one proprietorship you will see RT0002 etc.  Good news is that you can have 9,999 businesses under the same number, bad news is that each would have to charge HST.

One Response to HST – Proprietors Are Personally Registered

  1. Kate Macintosh June 20, 2018 at 10:03 am #

    Question on this: does this only apply to “sole” proprietorships? What if the main proprietorship is a partnership under several names?
    individually, they don’t make more than $30,000 in that business, but in total it does- therefore it charges HST. The individuals have other businesses– do they each need to register an RT0002 / RT0003 / RT0004, etc. on this same HST number and then charge HST for their other work?

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