How to Start a Farm Business in Ontario
If you want to start a farming business in Ontario, you need to familiarize yourself with the practical side of business in Canada. Knowing your industry and how to produce farming products or services is not enough to run a business in Ontario. There are registration papers, permits and tax issues that need to be in order and on record before you can proceed to satisfy your clients.
Other People Are Reading
Instructions
-
-
1
Write a business plan for your farming business. The business plan should outline your goals for the business, your budget, your marketing strategies, your products or services and prices.
-
2
Contact your local Service Canada office to register your business. At the time of registration, you need to provide information regarding your business, such as address, type of business and whether you are selling products or services.
-
-
3
Apply for an HST (formerly known as a GST) permit. You will need this if you earn more than $30,000 CAD per annum. If you do not make more than $30,000 CAD per annum, it is still a good thing to have.
-
4
Apply for farm business insurance through the Service Canada office. You need to insure your business in case you have faulty equipment or provide a physical labor service that some customers find unsatisfactory.
-
5
Make a budget for your business and decide whether it is necessary for you to open up a business bank account. If you do, you need a solid business plan to show to your bank, along with proof that you have registered your farm business.
-
6
Learn about the Canadian tax system. Small business owners must pay taxes once per year in a large lump sum. This sum is determined by your earnings within the tax year, and you pay 15 percent of that sum as taxes, according to the CRA (Canada Revenue Agency).
-
7
Find a place where you can grow your crops or raise your animals, if this is necessary for your business. Not all farm businesses require land, but if you do, you should incorporate this into your budget and time line.
-
8
Make a list of the required machinery you will need to successfully run your business. If you do not have the budget to buy new machinery, consider renting it or outsourcing to people who have the machinery you need. This includes automatic watering devices, barns, manure spreaders and fencing.
-
1
References
- Photo Credit farm image by Richard McGuirk from Fotolia.com
