12 Steps to Starting a Business in Canada

12 Steps to Starting a Business in Canada

Written by Susan Ward 

1) Come up with a good business idea.

One thing that's the same about
starting a business in Canada as starting a business anywhere else is
that you need a good business idea first. Follow the link above to
find collections of small and home-based business ideas you can
browse through, how to come up with winning business ideas of your
own, and how to test the viability of your business idea once you've
chosen one.

2) Write a business plan.

My Writing a Business Plan series that
starts with this Business Plan Outline will lead you through the
process of writing each section of the business plan. You'll find
more information, including links to sample business plans, in the
Business Plans section of this website.

3) Choose a winning name for your
business.

When choosing a business name, there
are two things to consider; the business name's marketing potential
and its legal elements. The link above will take you to the
information you need to choose the best possible business name for
your new business when you're starting a business in Canada.

You can also visit the Small Business:
Canada Forum for help brainstorming a catchy name.

4) Choose a form of business ownership.

What forms of business ownership can
you choose to legally structure your business when you're starting a
business in Canada? What are the advantages and disadvantages of each
of the forms of business ownership? These resources will help you
choose the best form of business ownership for your new business.

5) Register your business name.

Business name registration is a legal
requirement for almost all businesses in Canada. Find out whether or
not you have to register your new business’ name and learn all the
details about business name registration for starting a business in
Canada here.

6) Find small business financing.

While many new small businesses are
financed out of their owners' pockets, many others need an infusion
of funds from other sources to get off the ground. This page presents
the main small business financing options for financing a new
business in Canada.

7) Get a business license.

While not necessary for all businesses,
many new businesses will need to get business licenses before they
can operate legally within their municipalities. If your city or town
doesn't have a website, you can find the information in the blue
pages of your phone book.

You may also need other licenses and
permits depending on what kind of business you're starting. Industry
Canada's BizPaL is a really useful tool for finding out what permits
and licenses you'll need to do business. Available in most provinces
and territories, BizPaL will provide a personalized list of the
business documents you need for all levels of government.

The steps for starting a business in
Canada continue on the next page. Click to read about the five other
steps you need to go through when you're starting a business,
including registering for the GST/HST, registering for PST, and
getting your business records off to a good start.

If you have found this page through
search, this is the second page of a guide to starting a business in
Canada which explains the steps you need to follow when starting a
business and links to additional information to get your new business
up and running. You will find six other steps to starting a business
in Canada on page 1 of this article.

More steps for starting a business in
Canada:

8) Register for the GST/HST.

Although GST registration is mandatory
for all businesses in Canada, there are exceptions. Find out who has
to register for GST, why voluntary GST registration can be
advantageous to your business, how GST in Canada works and what the
GST registration process is with these GST HST resources.

9) Register for the PST.

Before starting a business in Canada,
you may also need to register as a collector of retail sales tax
(RST), also known as provincial sales tax (PST). Do You Have to
Register for PST or RST? In provinces such as Ontario and B.C.,
provincial sales tax registration is called registration as a vendor.
The PST/RST library includes links to provincial sales tax
information in various provinces, to make it easier for you to
register for, and learn how to collect and remit provincial sales tax
in your province.

10) Prepare to have employees.

When you're starting a business, hiring
employees may be the furthest thing from your mind, but it's amazing
how quickly a business can grow. And once you have employees, your
business will probably need to register with the Worker's
Compensation Board in your province. My Guide To Workers'
Compensation Insurance explains who has to register for Workers'
Compensation insurance and how to register; Workers' Compensation
Insurance has links to the Worker's Compensation Boards in every
province, where you can register online in some cases.

Find out more about hiring employees,
employment standards, E.I. and other employee issues in my Human
Resources Management Library. The Payroll Taxes section includes
Employer's Guides, T4 slips, the ROE - all the forms and details you
need to manage your employees' payroll deductions.

11) Buy other kinds of business
insurance.

Protect your new business by making
sure that you have the kinds of business insurance you need. Do You
Have The Business Insurance You Need? explains what property,
liability, business interruption, key people, and disability
insurance are. Find out more about these types of business insurance
in the Insurance library.

Learn about home-based business
insurance and how to save money on the cost of business insurance in
general in Home-Based Business Insurance.

12) Get your business records off to a
good start.

If you keep good records from the first
moment you're starting a business in Canada, things such as
accounting and paying taxes become so much easier. Get your business
records off to a good start with 7 Ways to Make Record Management
Easy and 7 Ways to Control Chaos in Your Small Business.

Want to know more about accounting
and/or bookkeeping? See these Accounting and Bookkeeping Resources.
Learn how to set up filing systems and handle receipts with these
Data Management articles. Find out more about business expenses and
tax deductions in this collection of articles on Small Business Tax
Deductions.

Where to from here?

The Starting a Business FAQ provides
answers to common questions such as whether or not you need a
business bank account and how to find small business start up money.
Visit the Small Business Financing section for information on small
business grants and loans. Browse the Starting a Business library to
read other articles about starting a business. Or if you prefer, sign
up for the Starting a Business in Canada Course which covers the
topics outlined in this article.

Two major concerns for people starting
a business are management and marketing. The Marketing and Business
Management hubs on Small Business: Canada contain many articles that
will help you market your product or service and manage your new
business successfully.

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