The 10-Step Ontario Business Startup Checklist.
Have you ever fantasized of running your own company? If you are an aspiring business owner who lives in Ontario and would want to launch a company there, we are here to assist you in making the leap.
Before we get started, it is essential that you fully comprehend what it is that you will be committing to. Entrepreneurs often put in long hours at the office, contend with steep learning curves, and juggle a broad range of responsibilities.
You’ll also be taking on additional duties financially, and you can expect to go up against some fierce competitors. Before beginning a new venture, it is critical to do enough research and thoughtfully construct a business strategy.
When founding a company in Ontario, there are a number of legal criteria and procedures that must be completed.
Additionally, we are here to provide a hand. To assist you in getting started as a company owner, we have compiled this comprehensive how-to guide that has step-by-step instructions and is loaded with useful information and resources.
The Necessary Steps to Take Before Beginning a New Business in Ontario
There are a few legal regulations that you will need to take into consideration before getting your company off the ground.
The process of registering your company
It is necessary for you to choose a structure for your company. You may go one of these three major routes:
In a sole proprietorship, you are the only owner of the business and are solely accountable for all of its assets and obligations.
When a company is incorporated, a distinct legal entity is created. This means that the company, and not you personally, is responsible for any debts or obligations incurred by the firm. It is the most complicated form that a firm may take.
In a partnership, you and one or more other people own the company together and divide up the personal obligations, assets, and liabilities of the enterprise.
The prerequisites for registration change depending on the kind of company structure you choose.
It is not necessary for you to register your business if you are a solo owner running a company under your own legal name and doing business under that name.
You are required to register your company with the province, however, if you want to do business under a name other than the one you originally chose for it or if it is organized as a partnership or corporation. When a company is established in Ontario, it is also registered at the federal level automatically.
In the event that you decide to incorporate your company, you will be required to do so in Ontario as well as any other provinces or territories in which you want to carry on business.
It is important to note that your company name will only be protected in the jurisdictions in which you choose to incorporate your business; however, choosing to incorporate your business at the federal level ensures that your name will be protected and recognized across the country as well as internationally.
When you incorporate your company, you secure the name of your company from being used by any other companies in the future.
However, because of the jurisdictional nature of legal protection, if your company is only incorporated in Ontario, the name of your firm will not be protected in any other state.
If you incorporate your business at the federal level, the name of your company will be protected throughout the nation, even if you don’t also incorporate it in each of the country’s provinces and territories.
Because incorporating a business is a complicated process, many business owners seek the assistance of a lawyer. However, Ownr can assist you with incorporating your company for a fraction of the cost that a lawyer would charge.
Putting in an application for a GST/HST number
In addition to this, you will need to choose whether or not to apply for a GST/HST number. The majority of sole proprietorships, partnerships, and corporations are considered “small suppliers” by the CRA, and therefore are exempt from the need to collect GST/HST since their annual total sales are less than $30,000.
You are required to apply for a GST/HST number and start collecting sales tax on all products and services once your global company revenues reach $30,000 in a single calendar quarter or in four consecutive quarters. This threshold may be met in either one calendar quarter.
If you voluntarily register to collect GST/HST before your annual income reaches the threshold of $30,000, you may be eligible to receive a financial advantage.
There is a quick method and a long method for reporting your GST/HST, so take some time to weigh the potential bump to your income against the time it will take you (or the cost for your accountant) to file your GST/HST returns. The amount of GST/HST you remit to the government will depend on how you report your GST/HST. There is a quick method and a long method.
Getting the necessary licenses and permits
In order to legally run your company, you may need to get certain licenses or permissions. With the help of BizPal, an online resource that is jointly handled by all levels of government, you are able to quickly and simply get a full list of all of the licenses and permissions that your particular kind of company may need.
Let’s get started with our 10-step checklist for getting your company off the ground now that we’ve gone over the fundamental legal criteria that must be met in order to launch a small business in Ontario.
The first ten stages to starting a company
Develop a concept for a company to pursue.
If you are reading this, you probably already have a fantastic concept for a company, and you are looking for some advice on how to make that concept a reality. But if you want to be an entrepreneur but are having trouble deciding what kind of company you want to launch, we have some ideas that you may use to get your creative juices flowing.
When entrepreneurs set out to address a specific need in the market, they often generate some of the most fruitful company concepts.
People may keep track of their routines, conduct business, place food orders, and do a great deal more with the assistance of apps. People are able to put order back into their houses with the assistance of professional organizers, cleaning services, and rubbish disposal firms.
Consulting firms assist private companies and public administrations in solving organizational problems.
It’s possible that the issue is not all that significant. Tina Nguyen, the creator of XXL & CO, got the idea for her company while she was making a scrunchie for a relative who had very long hair and needed one that was extra-extra-large.
She began producing XXL scrunchies in the basement of her parents’ home, and within a year, she had expanded her business to the point that she needed 15 employees and a warehouse to house her operations.
Do you possess a creative talent that may be turned into a source of income? Or, are you able to leverage your professional skills into a part-time or full-time service that you can provide? It’s possible that you have a particular interest in a product or just an idea on how to do a task in a more effective manner.
Keep in mind the manner in which you wish to operate as well as the location. If you want to sell things but don’t really like working face-to-face with consumers, then launching an online store rather than a traditional brick-and-mortar business might be the better choice for you.
Conduct studies on the market.
Conducting market research enables a company to get a better understanding of its customers, the demand for its goods and services, and its rivals. It is an essential element in the process of developing a successful company.
The following are some questions that have to be answered by your market research:
Who are the people who could become your clients or customers?
Do they need or desire the product or service you provide?
Who is your ideal customer—the kind of individual who is most likely to purchase your goods or services?
What characteristics do customers search for in a product or service like the one you provide?
When it comes to your product or service, how much are customers ready to pay?
How much does it cost to create or acquire your product, as well as the cost of shipping it to your clients?
Is there a significant enough market for me to launch a thriving enterprise?
Where do you stand in comparison to other businesses?
There is a vast quantity of data pertaining to the industry that can be found online. Statistics Canada is an excellent resource for information about consumer demographics, and the database of Canadian Industry Statistics is a good place to look for trends in various industries.
Local Company Improvement Areas (BIAs) might be beneficial if you are launching a business with a physical presence, and your municipality may provide demographic data for the neighborhoods in which it is located (Toronto’s is particularly detailed).
Conducting a survey or a poll with prospective clients is another option to consider. This may be accomplished with relative ease using various online tools such as Survey Monkey and Google Forms, in addition to the polling elements made accessible on many social networking sites.
Pick a moniker for your company.
You’ll need to select a name for your company before you can register it or incorporate it, and it’s in your best interest to choose a name that stands out and is easy to recall. Taking the effort to do so is definitely worth it.
As you think of suitable names for your company, look them up on Google and do a search for the corresponding domains to make sure they are not being used by any other companies.
Due to the fact that a registered sole proprietorship or partnership does not immediately have legal protection for its company name, it is conceivable for two or more enterprises to have the same name.
This, however, might lead to confusion on the part of the client base.
The next step is to do a search for the prospective names of your firm on the NUANS database of incorporated companies as well as the Canadian trademark database. This will ensure that you choose a unique name that is not already in use by another entity. In order to incorporate a corporation in Ontario or anywhere else in the country, you are required to get a NUANS report from a registered search provider.
This is a government requirement. You may reduce the amount of money you spend on search costs by pre-searching up to 30 different names at a time with Ownr.
You have the option of incorporating with either an English or a French name. You are required to submit a separate NUANS report for each name in the event that you decide to provide your company both an English form and a French version of its name.
You are free to additionally provide a translation of your company name into any other available language.
In the province of Ontario, the names of all corporations are required to finish with the appropriate legal entity. This might be Limited, Limitée, Incorporated, or Corporation (abbreviated Ltd., Ltée, Inc., or Corp. for short).
You also have the option of choosing to incorporate your company under a numerical name, which does not need a search via the NUANS database. After that, you may register a business name with the province and trademark it to safeguard your brand.
Pick a legal form for your company, then register it or incorporate it.
As was just discussed, the three most common organizational forms for commercial enterprises are sole proprietorships, partnerships, and corporations. Liability, tax rates, and finance requirements are some of the considerations that go into selecting which of the available options is best for you and your company.
The conditions for setting up a sole proprietorship or a partnership are often less stringent than those for other types of company formations, such as corporations. The possible disadvantage is that company owners are accountable for any obligations, which means that your personal assets, such as your house, automobiles, and investments, might be in jeopardy.
In addition, the rates that apply to your personal income tax return will be applied to the revenue from your company. Any sole proprietorship that is conducted under a name other than the owner’s own, as well as any partnership, is required to be registered with the province.
Because of the unique status of corporations as separate legal entities, owners of corporations have the benefit of having their personal assets shielded from any potential business-related liabilities. In the event that your business becomes very prosperous, incorporating it and taking a salary from the firm might provide you with significant tax benefits.
In conclusion, companies now have access to a wider variety of financing choices, such as the ability to raise capital via the sale of shares and loans with more favorable interest rates.
The process of incorporating a company is difficult and involves a significant amount of paperwork; however, Ownr makes the process much simpler.
In order to guarantee that no information is overlooked, we guide you step-by-step through the processes of registering, assembling documents, and submitting your incorporation.
In addition to this, we will save all of your crucial papers in a single location. There are plans available for continuous administration of the organization, which may help you save both time and money.
Invest on a domain name, then create profiles on several social networking platforms.
Now that you have decided on a name and structure for your company, it is essential to get a domain name for your company website and create profiles on various social networking platforms.
If all goes according to plan, the name of your firm will be accessible for use as both the domain for your website (for example, yourcompany.ca) and the handles for your social media accounts (@yourcomapny).
Before you even register your company’s name, you should consider doing a search to see whether or not the desired domain name (with a.com or.ca extension) is available at an affordable price.
There is no need for alarm even if your full name is not immediately accessible. Think of alternative versions that make use of abbreviations, acronyms, punctuation, or some other kind of identifier, like place.
In order to maintain a strong presence for your brand across all digital and social media channels, your naming standard should remain constant.
Don’t be scared to let loose and be creative with your domain name and the usernames you use for your various social media accounts. The workplace design company Bloom, located in Ontario, made the decision to go with an elegant action phrase for their website name
(buildwithbloom.com) as well as their social media handles (@buildwithbloom). Meanwhile, the Toronto-based wellness clinic Wellbe made the decision to append “hello” to the beginning of its domain (hellowellbe.com) and social media handles (@hello.wellbe), therefore emphasizing the friendly and approachable nature of the brand.
Building a website may begin after you have completed the acquisition of your domain name and the establishment of your social media profiles (which should be kept secret or unpublished until you are ready to launch your company).
In order to develop a website that is successful, you will need to have a comprehensive marketing plan, in addition to having a firm grasp of the value proposition and target market of your organization.
The process of developing your website and preparing your company strategy often go hand in hand. Consider using a website builder in order to cut down on the expenses associated with website building and upkeep.
If you have the funds available, you should think about employing a designer to develop a logo and visual identity for your website. You should also think about hiring a copywriter who specializes in writing content for small company websites.
Even if you only plan to use one or two social media sites for your company, it is still important to safeguard your brand by protecting your handle on Instagram, Facebook, Twitter, TikTok, YouTube, Pinterest, Snapchat, and LinkedIn.
Create a plan for your company.
Because a business plan gives you a road map for your company, you should make sure that you set aside some time to work on developing it. A business plan template might be helpful if you are unsure of where to begin or are feeling overwhelmed by the whole scale of the project.
As you develop your business plan, you will become aware of the areas in which you are well positioned and the areas in which you will require additional time or financial resources.
When it comes to money, your company plan may be a valuable tool in securing investment from financial institutions or investors. Even if you don’t have to worry about launch expenditures, most firms need anywhere from one to two years before they start turning a profit.
You could believe that developing a business strategy is not necessary at all. Especially if you are a lone entrepreneur who is well-known in your industry and has a sizable clientele from which to choose and an extensive professional network. However, the procedure has the potential to be of great benefit to the owner of any firm.
All of these things may have a positive impact on your bottom line: it can help uncover new or niche markets, establish growth targets, or create alignment with customers who have similar values.
Keep in mind that the strategy you have for your company is not fixed in stone. Aim for a strategy that is robust rather than one that is flawless since your vision will shift as your company and the industry undergo change.
Ensure that your company has sufficient financing.
While some firms may be started with very little financial outlay, others absolutely need funding in order to get off the ground. The following is a list of some of the potential sources of financing for your project.
Grants and financing for businesses from the federal government
Small business owners in Canada can take advantage of a variety of grants, tax credits, financing programs, wage subsidies, and other types of funding and resources made available by the Canadian government.
When you hire a student for a work term through the federal student work experience program, you are eligible to receive wage subsidies. These subsidies can help you meet short-term support needs in specific domains, such as digital marketing, web design, programming, or event management.
This is a cost-effective method that may speed up project completion while also allowing one to establish a network of prospective employees.
Grants available to Ontario businesses
In the Canadian province of Ontario, there are initiatives designed to assist Indigenous firms, small businesses located in Northern Ontario, and workers who are now employed as well as those who will be hired in the future.
You may also check to see whether your town or area provides financing programs or grants specifically for local companies by looking into it.
Angel investors
In exchange for an ownership stake in your company, angel investors will typically provide financial backing (and in some cases, mentoring).
Crowdfunding
Sites like Kickstarter, Indiegogo, GoFundMe, and Patreon (for artists) are examples of crowdfunding platforms that capitalize on the ability of individuals and networks to donate modest sums toward a larger financial objective.
Obtain the necessary licenses, permits, and insurance for your company.
Many different kinds of companies are needed to have certain licenses and permissions in order to operate legally. As was mentioned earlier, BizPal offers a comprehensive rundown of the licenses and permits that your company might be required to have in order to operate legally.
You are able to filter the results depending on your region, the industry, and the activities you do for your company.
Remember that there is a possibility that extra permissions may be necessary in certain situations. For instance, photographers often need site permissions in order to conduct photoshoots, and special permits are frequently necessary in order for events to take place.
Having insurance for your company is an essential decision. If you have the right kind of insurance for your company, it may protect you personally or the company itself against losses and liabilities that might be catastrophic financially.
An expert commercial insurance broker will be able to provide you advice on the kind of coverage that is most suited for your company’s activities.
You may want to think about hiring extra experts for certain services, such as a lawyer to design a vendor contract or an accountant to manage your accounts and make tax filings. Both of these services are examples of areas in which additional professionals can be useful.
Establish a strong presence for your brand.
Your company is, in all intents and purposes, prepared to launch at this stage; thus, it is time to start spreading the news and expanding your consumer base.
Your marketing approach will be determined by the sort of company you run and the money you have allocated for marketing, but there are a number of successful methods to interact with clients, including the following:
- Engaging material is the key to growing your following on social media.
- Email marketing allows you to communicate directly with consumers, which helps strengthen client loyalty and boost sales.
- Utilize sponsored social media to grow your audience and more effectively communicate with your target demographic.
- Publicize your business in the newspapers and radio stations in your immediate area to target particular demographics or target markets.
- Take part in activities that will help raise awareness of the brand (and keep an eye out for in-kind sponsorship opportunities)
- Make connections within your field by attending meetings of local business organizations and talking to others who work in marketing and events.
Expand and broaden the scope of your company.
If your marketing plan is paying off and your company is doing well, you should probably start thinking about expanding and growing your company.
Automating as many of your company’s processes and procedures as you can is a great approach to lay the groundwork for future expansion and success.
You can use apps to send out proposals and invoices, as well as accept payments; automated emails can be sent to customers; social media content can be uploaded in bulk and scheduled; and emails can be sent to customers automatically.
Support on a part-time basis may also free up more of your time for professional development. A freelance social media manager can handle strategy, content development, and interaction while a virtual assistant can manage your schedule and take care of bills, payments, or client enquiries.
A virtual assistant may also be used to manage a company’s online presence.
Even businesses run by a single person may reach a point when the demand for their products or services is greater than what they are able to provide.
Whether you have the financial means to recruit staff or you decide to contract part of the work out, getting the appropriate individuals aboard may assist you in taking your company to the next level.
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