10 Easy Steps to Start your Business in Canada

by | Jun 1, 2022

Starting a business in Canada is no cakewalk. It takes hard work, dedication, and patience to prove yourself. So, it would help if you learned to manage your payroll and bookkeeping. Bookkeeping is an integral part of any business. It helps you stay organized and secure your financial stability. Thus, taking care of your bookkeeping system and making a business strategy is essential.

So, if you live in Mississauga and want to start your own business, Yogi & Associates are here for you! Our team is here to guide you in running your firm. Moreover, we are also providing our bookkeeping, payroll, and corporate tax services to help you. So, please give it a read!

1. Find a Business Idea:

Whether you live in Mississauga or not, starting your own business in Canada is a rewarding journey, as there are many steps involved in getting it started. For instance, you are incorporating your business, managing payroll and bookkeeping, or creating financial partnerships. It all begins with an idea. First, consider what you excel at and enjoy doing and where your success will lead you. Then, before investing time or money in that idea, ensure you develop it.

Ideas are easy. Implementation is hard. -Guy Kawasaki, AllTop Co-founder.

2. Form a Business Plan:

A business plan is an essential part of your company’s life cycle. It will assist you in determining your success and strategy for organizational needs. Moreover, it will also maintain your bookkeeping matters. This will set your reasonable financial procedures like payroll or corporate taxes.

Making a business strategy will assist you in the following ways:

  • Sell your concept to promising benefactors and stakeholders.
  • With the correct bookkeeping, you can show your accomplishments,
  • Prepare for organizational requirements.
  • Based on your previous bookkeeping records, make more accurate financial projections.

3. Choose a Business Structure:

Choosing a business structure is crucial to starting your business in Canada. The three most frequent types of business formations are:

Sole Proprietorship: You are in charge of the company’s bookkeeping of taxes and loans. This includes corporate tax, payroll, and other bank activities.

Partnership: A partnership is a business connection in which two or more people share capital, workforce, and pay.

Corporation: Corporations are the most challenging legal system to understand. Corporations are the most complex legal system to understand. Yet, the government recognizes them and their stockholder’s share in the company’s profits.

4. Find an Appropriate Name for your Business:

  • It should be unique and represent the product and services you’re are providing.
  • Make it simple to understand and pronounce.
  • Always check for copyright issues when selecting a name for your business.

5. Register your Business:

If you’re a sole proprietorship that operates under your legal name,  you don’t need to register the name. Yet, if you conduct business as part of a partnership or a corporation, you must register your company’s name.

6. Apply for Permits and Licenses:

If you’re starting a new business in Canada, make sure it doesn’t require government permits or licenses. The types of permits and licenses needed vary based on your business and location.

7. Get your CRA Business Number:

For income tax purposes, you’ll need a business number. The Canada Revenue Agency can help you get a business number and register your company (CRA).

8. Register for GST/HST:

Registering for GST/HST is a simple process. It allows businesses to keep accurate records and pay less in taxes. After your business registration, you can claim input tax credits on business expenses. It’s a great chance to start getting things organized now, so you won’t be caught off guard when their time comes.

9. Raise Funds to Launch your Business:

Consider asking friends or family to invest in your organization to help you finance it. Or, look for a lender who can offer a loan at a low-interest rate. After that, you can maintain proper bookkeeping records of these funds and their sources.

10. Promote your Business:

The final step is to promote your company. It would help to plan a business strategy before creating a business plan. So, now is the time to put it into action. Then, begin converting those plans into objectives and specific advertising strategies. This way, the consumers can learn about what you do and how much they enjoy it!

Have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary. -Steve Jobs, Apple co-founder

Bottom Line!

Be wise to select your business structure. It impacts management, tax planning, bookkeeping, and finances. Moreover, it’s the most crucial decision since it lays the groundwork for everything else. Hence, you can contact Yogi & Associates anytime! Also if you want any help in your bookkeeping system, get our bookkeeping services at most affordable prices!

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