setting up your business step by step

MODULE 2

SETTING UP YOUR BUSINESS

STEPS TO SETTING UP SHOP

1. Retain the services of a good accountant and business lawyer

2. Determine the organization your business will take

3. Register your proprietorship, partnership or corporation

4. Choose a year-end for your business

STEPS TO SETTING UP SHOP

5. Look into any licenses you may need to acquire

6. Register your business with the Canada Revenue Agency (CRA)

7. Register with the Workers Compensation Board

8. Open a business account at your bank

Good reputation. Get Along Free consultation.

Chartered Accountant (CA)

Certified General Accountant (CGA)

Certified Management Accountant (CMA)

Certified Public Accountant (CPA)

Business and corporate

Your particular legal needs

Frequency of their services

Ask your accountant

Qualifications – anyone can be a bookkeeper

Proprietorship

Partnership

Corporation

THINK STRATEGY

Incorporate: Using a lawyer preferred

Proprietorship and Partnership: Yourself

Proprietor: Choose December 31

Corporation: Any day of the year

Tax strategy

Operations

YEAR END DATE

Tax planning considerations• Paying a year end bonus

• Compensating yourself with dividends

• Deferring tax for up to one year when incorporating

YEAR END DATE

Non-tax considerations

• Work to be done to prepare year end financials

• Seasonality of your business

• Retail businesses should consider inventory

Zoning issues

By-laws and licenses

Home office restrictions

Online

In person

By mail

CALL CRA

CRA Business Line1 - 800 - 959 - 5525

BUSINESS NUMBER

• Fifteen (15) digit number similar to:

88224 2992 RC 0001• The letter portion tells the CRA which

account to apply your payments• RC Corporate tax account• RT GST account• RZ Information returns• RP Payroll remittance account• RM Import and export account

BUSINESS NUMBER - INFO

What you’ll need to register a BN:

Personal information• your full name• home address• your social insurance number (SIN), • your phone numbers

BUSINESS NUMBER - INFO

Business Information• full name and S.I.N. of all owners, directors, partners or officers • the business's physical and mailing addresses • if the business is incorporated, the following information from

the certificate of incorporation: – corporate name

– certificate number

– date of incorporation, and

– Jurisdiction

• Information from your Provincial registration form if applicable

PROVINCIAL PST NUMBER

• Determine if you Province requires you to register for a PST number

• HST now in effect for many provinces

• Check to determine whether you sell taxable goods or provide a taxable service

WSIB for all employees

Optional insurance for owners

Premium charged per $100

Risky industries = high premiums

WSIB REGISTRATION

• Register by filling out application online, by phone or by mail

• Within a couple of weeks, you will receive an Employer Package in the mail

• Will be given contact information for your Customer Service Representative (CSR)

• This representative will help you with all issues (payments, making claims, etc.)

Separate bank account

Articles of Incorporation

CRA Business Number

Named or Numbered Corp.

Unique and distinct

No government names

NUMBERED COMPANIES

• If you don’t have a corporation name or it is unimportant

• The CPPSB assigns a number and the words “Ontario Inc.” or “Ontario Ltd.” after the number

1477165 Ontario Ltd.• Can always change the name, but this entail

additional fees• Or register a Trade Name in the Corporation

INCORPRATION PROCEDURES

Steps in the organization of a corporation• Maintain a Minute Book and issue Share Certificates• Organize the corporation – by-laws & resolutions• Banking arrangements• Directors’ resolutions• Shareholders’ resolutions• Maintenance and completion of registers• Initial return and notice of change

• If you engaged the services of a lawyer, they will take care of these tasks

ONGOING MAINTENANCE• Update your Minute Book annually• Annual resolutions – Directors and

Shareholders• Proper declaration of bonuses & dividends• Auditors will request to see the Minute Book

so have it updated• Maintains all the legalities of the company

Canadian Small Business Course

www.sbclearnbusiness.com

Visit us online and take the Canadian Small Business Course for in depth video tutorials

associated with this presentation

Canadian Small Business Course

www.sbclearnbusiness.com

Or take individual modules such as this presentation:

Module 1: Forms of business organization

Module 2: Starting a business step-by-step

Module 3: Compensation strategies

Module 4: Tax planning and strategies

Module 5: Expenses and deductions