Congratulations! So you’re ready to start a Canadian small business and join the ranks of the thousands of Canadian entrepreneurs that are following their dreams each day.
So where do you start?
Well, if you’re like most small business owners, you’ll be asking your other business owning friends for advice.
One friend said that the first thing you should do is incorporate. Another friend tells you not to get an HST number until you start to see some real sales. Another friend tells you not to bother with payroll deductions and take money out of the business as you need it.
Since you’re at the beginning stages of your business, you don’t really want to shell out dollars for expensive professional advice – of course, once your business starts to generate some cash flow, maybe then you’ll think about getting an accountant or lawyer. But for now, that’s on the backburner. What’s important is getting your business off the ground. Besides, if your friends have started businesses, surely whatever advice they can provide will work for your business as well.
The fact is that every business is different.
What’s right for some businesses may not be right for yours. A year down the road you realize that you lost out on thousands of dollars of HST input tax credits on your business start-up costs because you didn’t get an HST number on time. A CRA payroll audit reveals that you didn’t deduct proper payroll deductions from yourself or your employees and now face hefty interest and penalties. A disgruntled employee files a complaint because you didn’t provide him with a Record of Employment within the 5 day requirement. You paid too much income tax because you didn’t take advantage of deductions for travel allowances or home office.
You have enough on your plate worrying about how to run a business. Many business book writers emphasise surrounding yourself with good advisers as a key driver to a successful business. Good advice at the beginning of your business may be the best business investment decision you make.
At LiveCA, we recognize the challenges and constraints of new Canadian small business owners.
Talk to us from the comfort of your home or office for a free consultation before you launch your business. Get expert professional advice from a Canadian chartered accountant without the hefty overhead and get your business started on the right foot.