Business basics: name, tax and insurance

Business name and structure

You can sell as a sole proprietor under your own name without registering anything. If you trade under a different name, Ontario's Business Names Act requires you to register it. A corporation or partnership is a bigger step and is worth a conversation with an accountant.

Income and HST

• Income from selling food is business income and goes on your tax return.
• The CRA's small supplier threshold is $30,000 in taxable sales over four consecutive calendar quarters. Below it you generally do not have to register for GST/HST; you can register voluntarily.
• Some basic groceries are zero-rated for GST/HST. Check the CRA's guidance for your products.
• Keep receipts for ingredients, packaging and kitchen costs.

Insurance

Home insurance policies often exclude business activity. Ask your insurer in writing whether your food business is covered, and consider commercial general liability that includes product liability. We ask for a certificate of insurance before you list. Many cooks find this is the most affordable step on the list.

Pay at pickup

During the pilot, buyers pay you directly at pickup, so you handle your own receipts and tax. We do not take a cut or hold your money.

Sources

• CRA: when to register for and charge GST/HST
• Ontario Business Central

This guide summarizes public information and is not legal advice. Your public health unit decides what applies to your kitchen.