Essential Stuff To Know Before You Start A Business
Owning a business can be very rewarding, and when you’re starting a business, proper preparation and organization can go a long way to setting you up for success. An area of business often overlooked by entrepreneurs is the new task of managing finances and taxes, which can be complicated. Even decisions you make before you begin can affect your business. For instance, while a business owner may need to invest a sizable amount of money upfront, that amount can be claimed as a business expense on your tax return – provided it was incurred after you actually started the business. Therefore, it’s wise to minimize any business expenses until you are up and running.
Key Takeaways:
- One of the very first decisions to make is what type of business structure you want to create – sole proprietorship, partnership or corporation. The type you choose will be the main deciding factor for how you will be taxed by the Canada Revenue Agency (CRA).
- Right away, you’ll want to signup for a business number (BN) with the government, and CRA program accounts like GST/HST, payroll program and import-export program accounts.
- It’s wise to surround yourself with experts who can help, from seasoned mentors, to other entrepreneurs to tax experts.
“Running a successful business takes drive, innovation, passion and … wait for it … organized bookkeeping! That wasn’t what came to mind, was it? Most Canadians don’t dream of owning their own business so they can handle payroll and complicate their income tax return.”