Starting your first business is an exciting and complex process. Whether you plan to run a small home business or start a venture, we can help you navigate the details.
Tax residency status depends on a variety of factors, including your business. Understanding the requirements and meeting tax deadlines can help you avoid double taxation and penalties.
Types of Business in Canada
— Sole proprietorships are often chosen by freelancers and home-based entrepreneurs. They declare business income along with their personal taxes.
— A partnership involves joint ownership of a business and division of income between the partners.
— A corporation is a separate legal entity that protects the owners' personal assets from business risks. Corporations file a T2 tax return within six months of the end of the tax year.
Steps to Success
1. Choose a business name.
2. Register a Business Number (BN). When you register a business in Canada, the CRA assigns a unique BN. This number is required for GST/HST, payroll, and other transactions.
3. Register for GST/HST. Optional for small suppliers with annual revenues under $30,000, and registration allows you to claim tax benefits.
4. Set up payroll. If you hire employees, register them with the CRA and withhold taxes from your payroll.
5. Open bank accounts. Separate business bank accounts make tax reporting and financial management easier.
6. Paying Taxes. Track expenses and meet tax deadlines, especially as your business grows.
Getting Funding
Funding options include self-funding, business loans, grants, and investment from investors. These options can help you launch and grow your business.
Ready to get started? If you need additional help or advice, please contact us!