Date post: | 18-Nov-2014 |
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Business |
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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