If you’re reading this then your Multi Level Marketing (MLM) business is likely flourishing right now! As you’re noticing this growth you’re probably wondering “Should I register my MLM?” The answer is YES. Registering your MLM has some great benefits, and it doesn’t have to be a painful process as long as you prepare! Read on to learn more about these benefits and how you can prepare to register your MLM.
If you’ve landed on this blog and you don’t currently have an MLM but want to learn more about why it might be a good option for you, check out this blog to learn more! Also known as direct marketing or network marketing, MLM has become increasingly popular for those who want to earn extra, or passive, income while balancing work and family life. Check out some of the most popular MLM businesses in Canada!
Why Should I Register My MLM?
Registering your MLM will not only protect you from getting into trouble with Canada Revenue Agency (CRA), but it will also minimize your tax and personal liability as well as build your brand awareness, and bring you many more profitable opportunities.
Registering your MLM will give you some greater responsibilities than you’ve previously had. Here’s what you need to do to get ready to register your business, and how to easily navigate your bookkeeping and other steps once you’ve registered.
How Do I Get Ready to Register My MLM?
1. Set Up Your Office Space
You’ve most likely been operating your MLM online and have been working from your home. Working from home can make it difficult to stay motivated and organized. If you have an office space in your home, make sure you invest in a good desk and chair. Try to decorate your space so that you look forward to going into your office every morning! If you do not have an office space and you are working from your kitchen, that is okay too! Try to keep your work area as separate from your living space as possible, and keep your supplies organized. We recommend getting some office supplies that are easy to transport and put away at the end of each day, such as a file holder.
2. Organize Your Paperwork
Determine whether you are a paper person or if you prefer to keep all of your documents online. If you are a paper person, you’ll want to adopt a good filing system and stick with it. This could be a filing drawer that you organize monthly or quarterly, for example. If you prefer to have a paperless filing system, take photos of your receipts and documents save them on a hard drive or use an app like Hubdoc.
Tracking your business mileage is just as important as keeping your business expense receipts! Click here to download our free Mileage Log. You can use this on your phone, or print it off and keep it in your car. Be sure to include this log in your filing system.
Having your receipts and business documents organized and easily-accessible will be a big help when you register your business and when tax season comes.
3. Choose a Name For Your Business
When you register your business, you will need to register it under a business name. Naming your business is a big task. We recommend choosing a name that clearly represents what you do and is easy for people to read/pronounce. If you register your business as an incorporation you can also name your business with a number… but more on that later!
Choosing a name for your business doesn’t have to be stressful. CorePro8 can guide you through the steps to starting a business, including best practices for choosing a business name or number. Learn more about CorePro8 here.
4. Determine Your Main Office Location
When you register your business you will need to determine the province/territory in which you are operating out of, and where your main office will be located. If you are planning to continue working out of your home office, this would be considered your main office.
5. Decide How You Will Register Your MLM Business
Deciding whether to register as a sole proprietor or an incorporation can be complicated if you don’t understand what they are how they differ. If you want to know more check out our video on the difference between sole proprietorship and corporation.
Let CorePro8 Guide You
CorePro8 is the one stop shop to set up your MLM business correctly. It guides you step by step on how to start a business beginning with all the details you need to register. It also gives you advice on bookkeeping, taxes, and how to pay yourself. No need to search the internet for information on each step, CorePro8 has everything you need to set up your business. Learn more about CorePro8 here.
You’re killing it with your MLM and you love what you do each day. CorePro8 will help you organize your business essentials and make registering your business a stress free process so you can focus on what you enjoy.