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If I write online content and get paid through my PayPal account, and if the PayPal account is connected to my business bank account, does my income automatically become my corporation's income?

Usually for the corporation to earn money, I invoice a 'client.' How does it work in this kind of online scenario?

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Your actual question has nothing to do with the technical issue of linking a PayPal account to a bank account. It is all about the accounting of the money. That is, what you claim as income and what you can prove to the taxman.

Yes, you will need to separate the money. Linking to a business account is probably the way to go. From there, it is about how you keep track of the money and account for it.

How you do the accounting is a different question.

So:

No, it does not automatically become business income just because it goes into a business bank account. You still have to keep track of said income and claim it somewhere on some tax form(s). The point of the separate business account is to avoid the commingling of the the money which may lead to you losing the liability protection of an incorporation. The bank doesn't file your taxes for you.

  • the thing is that the website wont allow me to charge them 13% hst,unlike invoicing a client. – Victor123 Oct 13 '13 at 19:32
  • @KaushikGuha It seems you have many questions about this, not just one. Some of them seem to do with technical details of Paypal, which may not be answered well, if at all, here on this website. I'm not that familiar with Paypal's merchant services. Maybe someone else is. :) – George Marian Oct 13 '13 at 23:24

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