qprev_HBB Manual 2.qxd - Small Business BC

offer continuing business education throughseminars and workshops as well as formalcourses. You may also be able to hire a businessclass or students to do research for you on amuch larger scale than you could accomplishyourself.Many municipalities and regional districts havewhat is called an economic development office(EDC), sometimes attached to the planningdepartment at City Hall. Economic developmentofficers are able to answer general inquiries andspecific questions about your area of interest.They will also be able to tell you about otherlocal business resources and contacts.Understand the RegulationsHome-based business experts stress earlyresearch into licensing and regulations as part ofassessing your opportunity. To help you with thisresearch, you can often obtain free publicationson licensing and regulations for businesses inBritish Columbia. These can often bedownloaded via the Internet or are availablethrough the Canada/British Columbia BusinessService Centre or Government Agent offices.Regulations and laws that affect home-basedbusinesses exist at three levels of government:federal, provincial, and local or municipal.Federal and provincial governments areconsidered together below because they regulatesimilar kinds of things. Your research will helpyou discover the separate responsibilities of eachlevel of government in relation to your business.and specific consumer protections on advertising,packaging and labeling. Both levels ofgovernment levy personal and business taxes.The federal government charges customs duties,and administers the Unemployment Insuranceand Canada Pension Plans. All these may affectyou, and may influence your decision to base thebusiness in your home.The PST (Social Services Tax) is a seven per centprovincial sales tax administered by theConsumer Taxation branch. You are required toregister for and collect social service tax (retailsales tax) on your taxable sales and leases, if youengage in any of the following activities:• selling goods at retail• leasing goods as a lessor• providing legal services• Vancouver Regional Transit Service Area• providing taxable services (for example,repairs to goods)• providing telecommunications servicesThe GST (Goods and Services Tax) is a sevenper cent federal sales tax administered by theCanada Customs and Revenue Agency.Municipal GovernmentMunicipal by-laws cover zoning, where differenttypes of businesses may operate, plus any localoperating requirements. The zoning for yourneighbourhood or area spells out what is andisn’t allowed as a business activity from yourhome.Federal and Provincial GovernmentsFederal and provincial laws cover general dutiesin business, such as practicing business fairly,22solutions for small business home-based business