Did you know that Canada ranked as the third-best country in the world to start a business?
Are you wondering how to start a small business in Canada? Not to worry! In this guide, we’ll go over what you need to do to open your business.
Want to learn more? Keep reading to find out.
What’s Your Business Concept?
Before you begin planning your business, you need to sit down and think about your idea.
Do you want to develop your concept or open a franchise business? Are you passionate about a specific product or service? Pick an idea and start designing.
Test Your Business Idea
What are the local business trends in your area? Find a balance between offering something new but a service or product people want.
Test your idea, if possible. You could create a product and sell it at local markets or online.
If you plan on offering a service, test it out on family and friends. This way, you can hone your product or service and gauge interest.
By trying out your business idea, you can gather feedback and see if you can pursue it on a larger scale.
Draft up a Business Plan
Once you have your idea, start writing a plan. You can use different online resources to put together your plan. Include details about what the banks will need to see if you need a loan.
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See what support is available for small businesses in Canada. You can generate potential regional and federal resources.
Think of a Unique Name
Customers will make an impression based on your business’s name. Choose something unique. Make sure it’s something simple to pronounce and spell.
Research what businesses are out there, and make sure the name isn’t already in use.
Don’t Forget to Register Your Business Name
You might have to register your business name with provincial authorities. If a sole proprietor uses their legal name, you don’t have to register the business name. A sole proprietorship with a different name will need to get registered.
The exception to this rule is in Labrador and Newfoundland. Partnerships and a sole proprietorship don’t need to get registered. Research the regulations for where you live.
What Type of Business Structure Will You Choose?
A sole proprietorship is one of the cheapest and easiest types of businesses to run and register. You are responsible for your business and can get held liable for any debts. You’ll get to keep the profits.
With a partnership, you can work with one or more partners. Either as a
limited liability partnership, limited partnership, and general partnership.
Pool your resources with others to start your business. You will all share the profits.
If you create a corporation, you’re putting together a separate legal entity. This means you won’t become liable for the obligations and debts of the business.
A co-operative’s run and owned by its members. It can either be a not-for-profit or profit association.
Open a Business Bank Account
Go to your local bank and open a business account. As you buy and sell things, make sure you keep all your business receipts. You can use simple accounting software to help you stay organized.
Get a License and Permit
Before you can start to trade, you’ll need to get licenses or permits depending on the type of business. Find out what you need to know by checking on the Canadian government website.
Don’t Forget GST and HST Registration
You need to register for the harmonized sales tax and goods and services tax (HST/GST).
Register your business with the federal and local governments. You’ll need to get a business number from the federal government. If you live in Quebec, get a Quebec Enterprise Number.
Your business number will be a nine-digit number. The government will identify your business with this number.
Don’t Forget to Register for Sales Tax
Most territorial and federal governments want businesses to register with them as well.
In some provinces, you have to collect provincial sales tax once you’ve gotten registered. This process will vary depending on where you live.
Start Thinking About Hiring Employees
When you are planning your business, you might not be thinking about hiring employees yet. Instead of leaving this until later, start planning. Write out job descriptions, and decide what specialists you’ll need to hire.
You’ll have to handle worker’s compensation insurance and payroll deductions. You can create pay stubs online. You’ll also need to figure out employment insurance.
What About Business Insurance?
Your business might need extra protection other than employment insurance. Some policies cover disability, general liability, property, and business interruption.
Talk about these options with a lawyer and insurance agent. They can help you decide what ones you’ll need for your business.
Promote Your Business
Once you’re ready to launch your business, start sending out the word to your community.
Open up a few social media accounts like Facebook, Instagram, and Twitter. Work with someone to develop a marketing strategy. Start spreading the word a few months before you plan to open.
Now You Know More About Starting a Small Business in Canada
We hope you found this guide on businesses in Canada help. Start developing a plan for your business in Canada.
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