Definition of a Business

A business is an activity that you intend to carry on for profit and there is evidence to support that intention.  A business includes a profession, a calling, a trade, a manufacture, an undertaking of any kind, or an adventure or concern in the nature of trade.  Business income includes income from any activity you do for profit.  For example, income from a service business is business income.  However, you do not include employment income as business income.  You need to know if you are an employee or self-employed.

The date when the business can be said to have commenced must be known.  Generally, it is considered that a business starts whenever you start some significant activity that is a regular part of the business or that is necessary to get the business going.  For more extensive information, refer to

Corporation, association, cooperative, organization or other entity refer to all legal persons and any group or persons pursuing a common goal, with or without the intent of earning a profit.  An corporation business number begins with 11.

Sole proprietorship is a person operating a business of which he or she is the sole owner.  This does not constitute a separate legal entity, as the business and its owner are one and the same.  A sole proprietorship business number begins with 22.

A partnership refers to an entity in which two or more persons agree to carry on the operation of a business by pooling their property, knowledge or activities and to share any resulting profits.  A partnership business number begins with 33.

Posted in: General Business Information