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A Guide to Starting Your Business
11-15-2017
So you want to be an entrepreneur !
You have made a very important decision, but have you really considered all the implications?
Many Canadians have thought about the benefits of starting a business, the independence it would bring, the chance to be your own boss, and the opportunity to earn profits. All these are good, and the opportunity to earn profits. All these are good reasons for getting into business. But are you really ready for change it will bring in your life? How much risk are you willing to take?
The decision to get into business is one that only you can make. The level of risk that you feel completely comfortable with may be far too great for someone else.
Assessing your personal tolerance for taking risk and the step by step through the major decisions you must make in bringing your business idea from vision to reality is very important.
Some of the major decisions are as follows:
•Why do you want to get into business
•Assessing your personal strengths and weaknesses
•Assessing your personal risk tolerance
•Assessing your financial resources
After you know what you’re going to do and with whom, there are three important tasks to accomplish when creating a small business:
(i)Choosing a structure
There are four basic types of business organization”
•Sole proprietorship
•Partnership
•Corporations
•Co-operators
(ii)Business Number
Once a business structure is selected, your company might need a business number or BIN. A BIN is a number the CRA assigns to your company for tax purposes ie
•Payroll
•GST/HST
•Corporate
•Customs etc
(iii)Business Bank Account
Once the company is official, head on over to the bank and crate an account dedicated to your business. A business account allows you to separate business and personal finance and provide a good level of transparency should you ever be audited.
Accounting
Soon after your business is official, strange forms will start to show up in your office. It’s possible to learn the “ins and outs” of bookkeeping by yourself, but unless you dream of becoming a business superhero, you will probably want to stick to what you do best and hire an accountant to do what they do best.
Regulatory and Licensing Agencies
Once you have set up your business, there are several required and optional registrations:
•Workers compensation
•Business license
•Business registration
•Business number
•Goods and services tax
•Payroll tax
•Labor standards
Source of Business Information
The following sources can give you invaluable information required for the planning stage of your business. In most cases all it will cost you is the time and effort to approach the various sources and request the information you need:
•Small Business B.C.
•Canada Business
•Canada Business Services for Entrepreneurs
•Canada Youth Business Foundation
•Ministry of small Business and revenue
•Women’s Enterprise Center
•Work B.C.
•Business Development Bank of Canada
•Industry Canada.
Private Source
•Banks
•Consultants
•Accounting firms
•Law firms
This column is presented as a general source of information only and is not intended as a solicitation for business. Mohammed Yasin, CPA,CGA, is the principal of M. Yasin & Co. Inc., Certified General Accountants and has offices in Vancouver & Surrey,B.C.
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