I am a software engineer who has a full-time permanent job at a company. I am a resident of Ontario. A couple of months ago I started building websites for small businesses as a side hustle. Initially I thought it would be a one-off thing where the income generated wouldnt be substantial for me to worry about the tax. I originally started charging $3-5K for each website.
Then due to word of mouth, I started getting more and more clients. This small side hustle started generating around $10-12k per month for me. The clients would send me the payments through e-transfer. I have been keeping track of all these payments. I was wondering, what the best course of action is when it comes to taxes. I still havent registered as a corporation. Some people have told me to register as a Sole Proprietor as it is the easiest option. I'm still wondering what is the most efficient and optimal way to do this. I usually just file my T4s every year.
Are there any tips or tricks I can follow as a newbie freelancer to minimize my taxes? What strategies should I employ when it comes to making the most out of my side hustle?
Any advice would be greatly appreciated. Thanks in advance.