This is a guest post by Ownr.
If you’re an innovative thinker and problem solver who’s itching to be their own boss, then you might be considering launching a business. You just need a good idea, a business plan and the drive to get the job done.
This quick-and-easy guide is for entrepreneurs who are ready to take the next step and register their business. Understanding what you need to know before you get started and the steps you need to take to get your business registered is crucial when it comes to starting your next business venture.
Registering a business in Canada might seem complex, but once you know which type of business structure is best for you, the process is relatively straightforward. Plus, there are a lot of compelling reasons to make it official and register your business.
Whether you’re thinking of starting out with a sole proprietorship or a corporation, there are a number of benefits to registering a business, including:
● Establishing your business’ identity from the start
● Making your finance and accounting practices easier to separate and manage
● Providing credibility with customers and clients
● Working within the Canadian tax requirements
● The ability to expand and grow by hiring employees
Beyond that, registering a business can signal professionalism to potential clients. Plus, there’s nothing like checking “register the business” off your to-do list to motivate you!
There are two questions you need to know the answer to before you register a business in Canada. Without answering them for yourself and your business, it’ll be a little hard for you to finish (or start) the registration process.
The most popular types of businesses that are registered in Canada are sole proprietorships and corporations. There are a number of notable differences between them that entrepreneurs will want to take into consideration:
When you go into business with yourself (and just yourself) you are most often a sole proprietor. That means that you are the sole owner of your business, which also means you, as an individual, are legally and financially responsible for the actions of your business.
Sole proprietorships tend to be cheaper to register, but there are many reasons sole proprietors choose to incorporate instead because of the liability benefits.
Businesses that are incorporated operate as separate legal entities. There are added tax benefits, corporations can be bought, sold and passed on, and it can often be easier to raise capital. However, there are stricter regulations associated with corporations than sole proprietorships.
You’ll want to compare the differences between the two business structures before you decide to register for yourself.
Businesses that are registered in Canada are registered in a certain jurisdiction, after which they can be expanded into different jurisdictions. Before you register a business, you need to decide which jurisdiction because the requirements and processes will be different.
When you’ve figured out the finer details about what you’re going to be registering and where, it’s time to get the paperwork in order.
Businesses need to be registered with the provincial and/or federal government bodies of where you’re going to be operating. The same requirements apply if you’re starting an online business—you’ll still need to file taxes and follow the regulations of wherever you’re based.
To register your business, you’ll need to follow the guidelines and process of your jurisdiction which can often be found on their official government website.
Here are a few quick guides so you can get started:
If you’re going to be seeking funding (and even if you’re not) you’ll want to make a business plan as well. This can help you understand your business idea better and give you some milestones to aim for along the way.
Registering a business does not have to be hard. Ownr helps Canadian entrepreneurs register their business faster and for less money all from the comfort of your own home. With the all-in-one platform, you can register or incorporate, find the perfect business name, stay legally compliant, and save time and money as you grow your business.