I have decided to take the first step to start my own business, but is there anything I should prepare before starting a company?
- Develop a business plan. A business plan will help you organize your thoughts on all the aspects you will need for your new business. When you create your plan, you will need to think about and determine the market potential for your customers and business, outline how you will market your new business, determine your start-up costs, and plan your finances for the first few years of your business.
- Choose the right business form .
- Register your company (The process and requirements vary between provinces – please refer to your province’s information).
- Do you need a business license? ? Check with your municipality for details.
- Does your business comply with zoning and bylaw requirements? You need to check your local bylaws. For example, some cities have restrictions on operating a home business (home office) and may have special requirements. If you are renting out your property, it is also important to check whether the original use of your property meets the zoning requirements.
- Registration tax, provincial license, if required Depending on the type of business you run, you may need to collect provincial sales tax and apply for a vendor's license or other permits. Service businesses generally only need to charge excise tax, but there are some exceptions.
- GST , PST , HST There are two main taxes that businesses collect: the goods and services tax (GST) and the provincial retail sales or provincial sales tax (PST). Some provinces combine these two taxes into one, called the harmonized sales tax (HST). You will be assigned a business number when you set up one of four accounts with the Canada Customs and Revenue Agency (CCRA):
- Goods and Services Tax (GST)
- Corporate income tax
- Payroll tax deductions
- import and export
- Research and purchase business insurance There are many types of insurance that provide protection against potential risks in business operations. In addition to protecting your property and business assets, you may also need to choose some special protection liability and business loss insurance. Ask several business insurance agents. Each one has different costs and plans. Before purchasing, you should understand the products that meet your business needs.
- Understand human resources issues and responsibilities Will you hire employees? If so, you need to understand your obligations. Three things:
- Employee wages, you need to pay taxes to CCRA
- Labour laws. As an employer, you must follow the labour laws and human rights standards of your province or territory.
- Workers Compensation Board ( Workers' Compensation Board ). Some businesses need to register.
- Keep necessary records When you run a business, you are required to keep permanent books and records for a certain period – usually 6 years after the end of the last tax year, keeping records of all the company's income and expenses. These records will include receipts, invoices, vouchers and cancelled checks showing the amounts spent. Importers must keep additional information relating to the goods they import.