You Can Only Invoice if You’re a Business
But V.R. doesn’t have a choice here. There is no such thing as a personal invoice. Only businesses can invoice. Freelance work counts as business income, and there is no set limit that you must make before the income counts. It’s the simple fact that you’re selling something for profit that makes it business income.
So V.R. is/will be a small business whether he likes it or not if he does freelance work.
The good news is that in Canada, in most provinces and territories, you do not have to register your business if you set it up as a sole proprietorship using your legal name with no additions.
So V.R. will not need to register his business. He will have to declare his business income on his T1 income tax form when the time comes and remember to keep all his receipts related to any freelance work he does. Depending on what kind of work he’s doing, he may also need to be sure he has the required licenses to do what he’s doing by contacting his municipality, the appropriate federal agencies, or using BizPal.
But that’s it. Starting a sole proprietorship in Canada is really very easy.
And as for that invoice, here’s what has to go on an invoice.
More on Business Registration
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