I now know from experience what is needed to start a business. Even though I am an accountant there were a couple hiccups along the way. Here are three important things to consider when starting a business…
1. Structure of business – You should consult with an accountant on this as it is based on your individual situation. Typically, most businesses start off as self-employed, but some are incorporated at the beginning of operations.
2. Obtain proper licenses – If you are not using your own full name when self-employed you need to obtain a master business license in Ontario, https://www.ontario.ca/page/business-name-registration. This license will be required when opening a business bank account. You may be a member of a body that requires licensing to operate your business.
3. Sales tax registration – If you expect to have a lot of start-up expenses then early registration would make sense as you can recover the sales tax paid on most purchases. This will require you to charge sales tax on your sales. However, you will need to register when you are going to have $30,000 of revenues in a year.
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