Yes, there are advantages and it is important to do thorough research and consult with experts to make sure you are setting up your business legally and professionally.

For example, you can deduct business expenses such as supplies and business development activities, and your office space as a proportion of your home. You need to keep good records of your expenses and revenues. You need to have a GST number when your income gets over a certain amount. You may operate as a sole proprietor or a limited company. Find out the benefits of each. Good sources of information are Canadian Business Service Centers, which are operated by the federal and provincial governments. Every province has a toll free number. You can also contact the Business Development Bank of Canada. There are also good books on starting a business as well as lectures and courses at local colleges or community centres. And establishing a relationship with an accountant is smart. You may only consult with this professional at tax time, but it is good to make sure when you are starting that you're doing every thing right.

More FAQ Topics:

• How do I balance work and family?
• What's the best way to handle interruptions?
• Should I see clients in my home office?
• Do I need a Web page?
• How do I market my company?
• How to avoid/deal with business partner conflicts?
• Where and how can I get financial assistance for my business?
• How do I manage my time better -- I need a vacation!!
• What kind of home-based business should I start?
• How do I find customers?
• How do I make the transition from a full-time job to self-employment?

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