How to Start a Small Business in Canada
Thursday July 2, 2009
In many ways, starting a small business in Canada is the same as it would be anywhere else. You have to come up with a good business idea,
choose a winning business name for your new enterprise, write a business plan and find the small business financing you need to get your new business off the ground.
But there are also parts of starting a small business in Canada that are, well, distinctly Canadian.
For instance, the forms of business ownership that you can choose from are governed by federal and provincial legislation. Some forms of business ownership that are available in other countries are not available here at all or are only available to businesses that meet particular requirements.
Basically you only have four choices when it comes to forms of business ownership in Canada: you can structure your business as a sole proprietorship, a partnership, a corporation or a cooperative. Find out more about each form of business ownership here.
Another distinctly Canadian aspect of starting a small business in Canada is dealing with federal and provincial taxes. Registering for the Goods and Services Tax (GST/HST) is a requirement for most Canadian businesses, although as you'll see when you read the linked page, there are exceptions to this general rule such as qualifying as a Small Supplier.
Many Canadian small businesses also have to register for Provincial Sales Tax (PST/RST) if they live in a province that has provincial sales tax and sell goods or services that qualify.
Licensing is another purely Canadian issue. The federal and provincial governments regulate particular industries; municipalities also license and regulate businesses as they see fit. While you can always look in your phone book to find government offices to call and ask, 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.
And, of course, the system of Workers' Compensation Boards is uniquely Canadian. If you have or are planning to have employees, you will have to register your business with your provincial Workers' Compensation Board (WCB)and pay Workers' Compensation insurance premiums based on your industry classification. Find out more about Workers' Compensation Insurance.
There you have it; a quick guide to how to start a small business in Canada. For more detail on any of these topics, browse this list of how to start a small business articles. And you're welcome to post your specific questions about how to start a small business in Canada on the Small Business: Canada Forum.
Image (c) DC Productions / Getty Images
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But there are also parts of starting a small business in Canada that are, well, distinctly Canadian.
For instance, the forms of business ownership that you can choose from are governed by federal and provincial legislation. Some forms of business ownership that are available in other countries are not available here at all or are only available to businesses that meet particular requirements.
Basically you only have four choices when it comes to forms of business ownership in Canada: you can structure your business as a sole proprietorship, a partnership, a corporation or a cooperative. Find out more about each form of business ownership here.
Another distinctly Canadian aspect of starting a small business in Canada is dealing with federal and provincial taxes. Registering for the Goods and Services Tax (GST/HST) is a requirement for most Canadian businesses, although as you'll see when you read the linked page, there are exceptions to this general rule such as qualifying as a Small Supplier.
Many Canadian small businesses also have to register for Provincial Sales Tax (PST/RST) if they live in a province that has provincial sales tax and sell goods or services that qualify.
Licensing is another purely Canadian issue. The federal and provincial governments regulate particular industries; municipalities also license and regulate businesses as they see fit. While you can always look in your phone book to find government offices to call and ask, 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.
And, of course, the system of Workers' Compensation Boards is uniquely Canadian. If you have or are planning to have employees, you will have to register your business with your provincial Workers' Compensation Board (WCB)and pay Workers' Compensation insurance premiums based on your industry classification. Find out more about Workers' Compensation Insurance.
There you have it; a quick guide to how to start a small business in Canada. For more detail on any of these topics, browse this list of how to start a small business articles. And you're welcome to post your specific questions about how to start a small business in Canada on the Small Business: Canada Forum.
Image (c) DC Productions / Getty Images
Follow Me on Twitter.
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