Setting Up a New Business

If you’re thinking of starting a business in Canada, here are some steps you can follow:

1. Come up with a business idea and write a business plan. A business plan is a document that describes your strategies, objectives, financial forecasts, and the market you are targeting. Preparing your plan will help you focus on how to operate your new business, plan for the growth and progress, and give it the best chance for success.

2. Choose your form of business ownership that will best suit your needs. The 3 most common structures are:

• Sole proprietorship
• General partnership
• Incorporation

3. Register your business name as it is a requirement for almost all businesses Canada. The name of a new business must be registered if it is different than the business owner’s legal name.

You can complete an optional name search and register your business in the following ways:

• Through Service Ontario’s website
• In person at a Service Ontario centre
• By mailing an application to the address indicated on the form

The cost to register your business ranges from $60 to $80. Your registration is valid for five years, at which time it must be renewed.

4. Depending on your business, you may also need to get other licenses or permits. Bizpal is a really handy tool for finding out what permits and licenses you’ll need to do business.

5. Secure financing, such as grants, loans guarantees, contributions, and subsidies, all of which are available from various government sources.

6. Depending on your location and the type of products or services being offered, federal, provincial and/or municipal business taxes may also apply.

Take a look at the Taxation Guide to help you figure it out!