Sole proprietorship vs. LLC: Filing sales tax as a freelancer

Can someone please break this down for me? Like, how does one actually go about registering as a sole proprietor for sales tax purposes... what kind of headaches am I looking at regarding obligations, rights, and all that other legal stuff?

Thanks 😉

Does seriously nobody know anything about how individuals are handled in the sales tax system?

They know how it works, they just don't want to play ball 🤣

If you're an individual running a side hustle—say, renting out some condos or picking up extra income from a freelance gig—and you pull in more than $76667 a year, the IRS basically forces you into the sales tax system. You also have the option to register voluntarily, which lets you charge sales tax just like any big corporation would.

It’s not that we don't want to, believe me, I really do! 🙂 We're grinding away because peak season is already here and there's zero downtime. But... if you don't mind me asking... is it even worth it? Like, for an individual, does it actually make sense to jump into the tax system if you aren't drowning in overhead? I mean, I get the logic if you're buying tons of stuff for what lili mentioned—like renting out space—where you drop, say, $2,000 on equipment and then rent it out for $1,000, and the government basically hands you back the difference from the Value Added Tax Act. That's my question! 🙂

Can someone point me to the specific section that explains when an individual is exempt from the Value Added Tax Act? I remember seeing something about this under section 22 before, but now I can't seem to track it down anywhere.🙂

Article 6 of the Value Added Tax Act lays out exactly who qualifies as a taxable person under the law.
If memory serves, they didn't change much from the old version either. It’s always the same old song and dance with these regulations.

If you’re referring to that section regarding small tax entities, that’s actually been moved to Section 90 now.