sharing information for starting a business

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Q1. How do I legally “register” a business?

Answer: “Registering” a business most often refers to registering the name of a business. In Ontario, it is a legal requirement to register your business name if you are operating a sole proprietorship (1 owner) or partnership (more than 1 owner) under a business name other than your exact legal name.
There are 4 ways to register your business name:

i) from the Internet via the Ontario Ministry of Government Services:
www.serviceontario.ca
Immediate registration (you can print off from your computer) if done between the hours of operation 8:30am to 6:00pm Monday to Friday, for a fee of $60.00 payable by credit card (Visa, Mastercard or American Express). If registration is completed during regular business hours a Master Business License is printed off from your computer right away followed by an electronic saveable copy which can then be printed off when needed) within 2 business days if a valid email address is provided. If no email address is provided, a copy will be mailed to you within 10 business days. If done outside the hours of operation or on statutory holidays or Remembrance Day, allow up to 2 weeks for delivery of the Master Business License.
A name search can also be done online for a fee of $8.00.

ii) from the Internet via the Canada Customs and Revenue Agency - http://www.craarc.gc.ca/tx/bsnss/tpcs/bn-ne/bro-ide/rstrctns/chcklst-eng.html.
Registration takes about 30 minutes and costs $60
(payment by credit card only). Name searches are not available with this method of registration.
As well as registering or renewing a business name, you can also from this site register for:
• Business number (Basic Business Information)
• Corporation income tax program account
• GST/HST program account
• Payroll program account
• Import/export account
• Provincial accounts

iii) In Person – Service Ontario Counter
For a list of Service Centres in Ottawa where you can register a business name in person:
https://www.services.gov.on.ca/serv...ategory_id=0&last_sub_category_id=1&locale=EN
Registering at a workstation takes about 30 minutes and costs $60. Searches of sole proprietorship, general partnership and corporate trade style names are available at the workstations for $8 per name.

iv) by mail
Mail registration requires “Form 1" (Registration under the Business names Act - Sole
Proprietorship/Partnership), takes 2-4 weeks and costs $80. This form is available at the Service Ontario in City Hall or online at:
http://www.forms.ssb.gov.on.ca/mbs/...Form&ACT=RDR&TAB=PROFILE&ENV=WWE&NO=007-07219

Registering a business name does not give you exclusive rights to the use of the name. You can conduct a name search of existing sole proprietorships and partnerships in Ontario, however this name search is optional as sole proprietorship and partnership names are not protected. You can conduct name searches at an OBC computer ($8 per name) or by mail ($12 per name). (To protect a business name you must incorporate or apply for a trademark – visit www.cipo.gc.ca .)
Incorporation is another way to register a business. If you want to operate your business as a corporation (a separate legal entity), you must incorporate your business. You can incorporate provincially or federally.

If you wish to name your corporation you must first conduct a NUANS® name search to verify if the name is available, because corporate names are protected.
NUANS® is a computerized search system that compares a proposed corporate name or trade-mark with databases of existing corporate bodies and trade-marks. This comparison determines the similarity that exists between the proposed name or mark and existing names in the database, and produces a listing of names that are found to be most similar.

To obtain a NUANS® report, you have the option of ordering your own NUANS® report in real-time from the NUANS "Do it yourself" Real-Time System (RTS) for federal incorporations only, or you may elect the assistance of a registered Nuans Name Search house http://www.nuans.com/housesmaisons/sh_form-forme_mr_en.cgi of your choice to incorporate federally and to incorporate in other jurisdictions.

Provincial incorporation costs $360 plus the cost of forms available from the government website:
http://www.forms.ssb.gov.on.ca/mbs/...=WWE&TIT=business+incorporation&NO=007-07116/
The forms can be filed at Service Ontario located in City Hall, 110 Laurier Ave. W. You can also incorporate on-line through www.oncorp.com or www.cyberbahn.ca
The cost for on-line filing is $300, plus the service provider's fee. Payment can be made by credit card or by setting up an account.

Federal incorporation costs $250 if filing in person at Industry Canada's Corporations Directorate or $200 if filing via the Internet from the Corporations Directorate Electronic Filing Centre at http://www.corporations.ic.gc.ca . More related information is available in the Corporations Directorate's Small Business Guide to Federal Incorporation.
 
Q2. Do I need a licence for my business?

Answer: Certain business activities require a permit/license. Permits/licences are granted in most cases by government (federal, provincial or municipal).
To verify if you require a permit/licence for your business contact the Canada-Ontario Business Service Centre at (800) 567-2345, visit their web site at the following URL: http://www.canadabusiness.ca/eng/

To ensure your business complies with Ottawa’s by-laws, visit the business licencing section of the City of Ottawa Web site at http://ottawa.ca/residents/bylaw/a_z/business/schedules/index_en.html

You can also use a new feature on the City of Ottawa website called BizPaL, an online service for
entrepreneurs that simplifies the process of finding information on business permits and licences from all levels of government.
Alternatively, you can call the City Licencing department at 613 580-2424, ext. 41596 or visit a
licensing office at:
Ben Franklin Client Service Centre
101 Centrepointe Dr., 3rd Floor
Nepean, ON K2G 5K7
You will receive a Master Business License from the Ontario Ministry of Consumer and Business Services if you register your business name.
 
Q3. What taxes do I have to charge?

Answer:
The HST which has been in effect in Ontario since July 1, 2010 replaces the previous provincial Retail Sales Tax (RST) and is now combined with the Federal Goods and Services Tax (GST) – HST rate 13%.

If your gross revenue is less than $30,000 in 12 consecutive months, then you may voluntarily register for and charge the HST.

Once you have reached 30,000 then you must register for a Business Number and collect and remit 13% HST. When making this decision consider the following:
• Will it be an accounting hassle? For some people, particularly those on a manual bookkeeping system, accounting for HST means another column to balance.
• If you’re not registered for HST, you won’t be able to take advantage of Input Tax Credit which allows you to deduct the HST you have paid on business expenses from the HST you have collected.
• Not charging the HST indicates your gross revenue is less than $30,000.
• What are your clients accustomed to? Do your competitors charge the HST?

For more information contact: Canada Revenue Agency (CRA)
333 Laurier Avenue West
Ottawa, ON, K1A 0L9
Tel.: 1-800-959-5525
web site: www.cra-arc.gc.ca
The CRA conducts free seminars on HST. Call (613) 842-3573 or (866) 668-8297 for information and registration.
 
4. What is a business number (BN)?

Answer: The Business Number (BN) is kind of like a Social Insurance Number, but the BN is for your business rather than you as an individual. CRA issues this 9-digit number when you register for any of four CRA accounts. These accounts are: GST, Payroll Deductions (CPP, EI, Income Tax), Import/Export and Corporate Income Tax. This number is designed to simplify and streamline businesses dealings with CRA.

To register for a Business Number call 1-800-595-5525 or online at: http://www.craarc.gc.ca/tx/bsnss/tpcs/bn-ne/menu-eng.html .
 
Q5. Can I “write-off” my business expenses?

Answer: You can generally deduct business expenses if you incur them for the purpose of producing income. If you claim expenses, you have to be able to back up your claim. You do this by keeping all your business-related vouchers and receipts, and recording all your expenses in a journal. Examples of expenses you can deduct include: accounting and legal fees, advertising expenses, fees, licences, and dues, interest and bank charges, meals and entertainment, maintenance and repairs, vehicle expenses, use of a workplace in your home and inventory and costs of goods sold. Typically a percentage of an expense is claimable.

For more information see Canada Revenue Agency (CRA)’s income tax guide entitled “Business and Professional Income”.
Copies are available at CRA’s office or their web site http://www.craarc.gc.ca/E/pub/tg/t4002/README.html . .
 
Q6. What government financing is available for a business?

Answer: There are several government financing programs for business targeted to specific industries,geographical areas or particular groups of entrepreneurs. Almost all of these financing programs consist
of loans. There are very few grants available, but they do exist for the arts/culture industry. The most common financing program is Canada Small Business Financing (CSBF), a loan which is guaranteed by
the Government of Canada to your financial institution in the event of a default on the loan.

For information about government financing programs for business contact the Canada Business Ontario (CBO) at 1 (888) 745-8888 or visit their Web site: http://www.canadabusiness.ca.

You can also visit Industry Canada’s Web site Strategis for sources of financing at the following URL: http://www.canadabusiness.ca/eng/82/ .
 
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