If you’re a Canadian author there are a few there are a few things you should be aware of to avoid trouble with the tax man 🙂
1) Apply for a business license under proprietorship- you are becoming a business owner Celebrate!
2) Open a separate banking account and apply for a business credit card
3) keep your receipts for travel, memberships, workshops, craft books, self-publishing paraphernalia such as cover art, editing services( I keep everything down on an Excel spreadsheet for reference)
4) A G.S.T number is required if you plan on earning more than $5000 a year (I hope)
5) I just learned today about applying for a EIN (Employment Identifacation Number) for sales you make in the U.S. Some publishers based in the US require that authors who aren’t based in the US register for an ITIN in order for them to pay you your royalties.
Here’s the link to her site for more information:
http://crystalstranaghan.com/get-an-itin-or-ein/
Are you prepared for Tax-time? Any other tips that you’d like to share?
Jacquie Biggar-USA Today Best-selling author 