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 Goods and Services Tax/ Harmonized Sales Tax (GST/HST).
If your new small business's gross income exceeds $30,000, you will have to register for GST/HST. (Note that this Small Supplier exemption doesn't apply to all businesses: taxi and limousine services, for instance, always have to register for GST/HST.)If you start operating your small business as a Small Supplier but find that it does make more than the $30,000 limit, When Do I Need to Register for the GST/HST? explains the Canada Revenue Agency's registration rules.
Even if you're not making much money to start, though, you may want to register for GST/HST immediately because of Input Tax Credits, which are basically your way of getting back the GST/HST your business has paid out on purchases for business use.
For more information on the GST/HST, visit Answers to Common GST/HST Questions and/or the GST/HST library.
9) Register for Provincial Sales Tax (PST).
If you are starting a business in Manitoba, Saskatchewan or Prince Edward Island, you will need to register as a collector of provincial sales tax (PST). If you are starting a business in Quebec, you will need to register for Quebec Sales Tax (QST).
How to Charge and Remit Retail Sales Tax in Manitoba explains how the process of collecting and remitting provincial sales tax works.
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. Learn what you have to do to legally hire someone in Canada. Get ready to do payroll with my Guide to Canadian Payroll Deductions which includes direct links to Canada Revenue Agency resources such as the Payroll Deductions Online Calculator.
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 FAQs 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.
There is also a Business Terms Glossary that you may find useful. Best of luck in your new venture!
