Susan asked:

My husband wants to be a work at home dad--taking care of our children and doing some auto repair business in our garage--what is the maximum income he can receive without having to claim or file income tax? Does he have to become licensed? Register his business?

Regina City Hall answered:

In order to operate a business in Regina you will need to fill out an application for a business license. You should also make sure to inquire about other bylaws that may apply to you running a mechanic business from home, such as excessive noise. Applications can be picked up on the main floor of City Hall. If you have questions you can call the Business Licensing Office at 777-7717. There is also some information on their website.

If you are going to use a business name then you have to register that name with the Justice Department of the Saskatchewan government. The link below should help walk you through the steps. This form must be sent to the Justice Department's Office, the address is provided in the kit.

Click here to download the Business Registration Kit.

All of the income you make from a business must be declared to the federal government. However, you can write off business expenses which should keep your taxable income low. Before you can do all of this you must have a reasonable expectation that you will indeed make a profit.

This link will take you to the Canada Customs and Revenue Agency's small business tax page. From there you can find information on a number of federal tax issues.

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