Did you know that Canadians start almost 100,000 new businesses every year? Small businesses are the backbone of the Canadian economy.
If you are thinking about starting a business in Canada, though, there are a few things you need to know. These five crucial facts will help you get your Canadian business idea off the ground for long term profitability in any economy.
1. Form a Business Plan
Before starting a business in Canada, you will want to do some market research. Who is your competition? Are people interested in what you have to offer?
You will also want to form an outline of your business idea. What products or services are you bringing to the market? How will you deliver them to your customers or distributors? What will your business marketing plan be?
A business plan is a useful document for a variety of reasons. First, it gives you a road map to where you want to take your business in the future. Next, it can help you see where you’ll face challenges, such as competition.
Finally, a business plan can help you convince business partners to come on board. It may be essential to securing funding or other supports.
2. Discover Resources for Starting a Business
The next step you should take is researching available resources for entrepreneurs like yourself. The Business Development Bank of Canada, or BDC, may be a resource for finances.
There are many government programs designed to help Canadians start their own businesses. You may be able to access funding through them.
There may also be resources for mentorship, legal assistance, and much more. In short, you may be able to get the guidance you need to steer your business in the right direction.
3. Decide on a Business Structure
There are several different ways to structure a Canadian business. You can create a sole proprietorship, a partnership, or a corporation.
Most Canadians start their businesses as a sole proprietorship. This means they’re the sole owner, and they’re also responsible for the business.
Incorporating a business can seem daunting, but it may actually be the right choice for you. A limited liability corporation, or LLC, protects your personal property if your business lands in legal hot water.
There are a few different types of the corporate structure as well. These can vary from province to province.
4. Prepare to Pay Taxes
The structure of your business also has implications for how you pay taxes. A sole proprietor or partner has different tax obligations than a corporation.
Different types of corporations may also have different tax structures. Any business startup in Canada should research these options carefully. They could mean the difference between paying penalties or turning a profit, so choose wisely.
5. Register Your Business
Finally, you should register your business in Canada. You will need to register the business with the federal government in order to pay business taxes or to collect HST/GST. You’ll be assigned a business number.
You may also need to register at the provincial or territorial level. You’ll need to follow the process outlined in the areas you want to operate.
Finally, you will need to pick a name to operate under. To do so, you may need to get a NUANS report. This report will tell you what names are available for your company.
Get Started the Right Way
Starting a business in Canada is an exciting opportunity. It is important to be sure to take the right steps to secure your success as a Canadian business owner.
Looking for more tips on how to drive your new Canadian business forward? Check out more great advice on starting a business in our extensive Everything Entrepreneur Blog library!