How to Open a Small Business in Canada

Anyone who has ever opened a small business in Canada will tell you that it is challenging. However, it is also one of the most rewarding experiences you will ever have. Make no mistake, there is A LOT of work involved, but being your own boss brings a freedom and a sense of accomplishment that can not be found in your typical nine-to-five world. If you have ever wanted to open a small business in Canada, read on.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Identification
• Money to Pay Filing Fees

How to Open a Small Business in Canada

1. Have an idea. All great things begin with a single idea. Just ask yourself what you would like to spend the rest of your life doing. Try to think of something you are passionate about. After all, owning your own business is a lot of work, so if you are going to open a small business, it may as well be something that you enjoy.
2. Have a plan. You can open a small business without a business plan, but why would you want to. Having a good business plan will keep you on course and increase your chances of success. There are a lot of free business plan templates available online. Fill one out and move your small business on step closer to success.
3. Register your business. You can register your business at the local municipality to obtain a business license. You can register as a sole proprietor, partnership or corporation. Each has their own specific strengths and weaknesses. If you are going to open a small business on your own, you will probably want to register the business as a sole proprietorship.
4. Register for Provincial Sales Tax. The Provincial Sales Tax (PST) is paid to the province where your business is located. You are responsible for collecting this tax from your customers and passing it on to the Consumer Taxation Branch. Also, you will need a PST number to buy tax free goods or wholesale merchandise.
5. Look at your profits. Register for the Goods and Services Tax (GST) once you begin making at least $30,000 for any 12 month period during the calendary year. The GST is a federal tax paid to the Canada Revenue Agency.
6. Open a small business bank account. Pretty much any bank will be more than happy to open a small business bank account for you. Shop around to find out which bank offers the interest rate, perks, and account features that work best for your business needs.

Tips & Warnings

• Owning a small business is not for everyone. It takes commitment, hard work and a strong desire to be your own boss. If you have what it takes to open your own small business in Canada, you will find it to be one of the best decisions you ever made.