Select a Business Structure
The four main types of business structures recognized in Canadian law are: sole proprietorship, partnership, limited company (corporation), and business cooperative.
For more information on business structures and their advantages and disadvantages, see the document Forms of Business Organization.
Prepare a Business Plan
Most experts will say the most crucial step in starting a business is the planning stage. Unfortunately, this step often gets little attention or is skipped completely, leading to disastrous outcomes such as the failure of the business, loss of investment, or loss of personal assets. This is why planning is so important. Anyone applying for financial assistance will need a business plan.
For more information on business plans, use the Interactive Business Planner (IBP), a program that uses the capabilities of the Internet to assist you in preparing a 3-year business plan for a new or existing business.
Register Your Business Name
No matter what form of ownership you choose (sole proprietorship, partnership, corporation, or business cooperative), you must register the name of your business with the Registry of Joint Stock Companies, although there are a few exceptions. When you register your business name, you are ensuring no one else is carrying on an operation under that name.
For more information, please contact:
Registry of Joint Stock Companies
Service Nova Scotia and Municipal Relations
9th Floor, Maritime Centre
1505 Barrington Street
P. O. Box 1529
Halifax, Nova Scotia
B3J 3K5
Telephone: (902) 424-7770
Fax: (902) 424-4633
Toll-free (information): 1-800-670-4357
E-mail: joint-stocks@gov.ns.ca
Web site:
http://www.gov.ns.ca/snsmr/rjsc/
Register With Canada Revenue Agency
You will need a Business Number (BN) from Canada Revenue Agency (CRA) to:
- file your annual tax return if your business is incorporated
- import or export goods to and from Canada
- remit payroll deductions (Income Tax, Employment Insurance, Canada Pension Plan) for your employees
- collect and remit GST/HST
When registering with the Registry of Joint Stock Companies, you will be assigned a BN from CRA. This number is a common identifier for many businesses. The Registry gets your BN automatically from CRA. Service Nova Scotia and Municipal Relations and the Workers' Compensation Board of Nova Scotia both currently use BNs.
HST Number
You must register for and charge Harmonized Sales Tax (HST) if you sell or provide taxable goods or services in your commercial activities in Canada, and your total taxable revenues were more than $30,000 in the immediately preceding four consecutive calendar quarters, or exceed $30,000 in a single calendar quarter. If your sales do not exceed $30,000 in four consecutive calendar quarters, you do not need to register or charge HST.
If you wish to register for HST, you will need a BN. If you have recently registered your company name with the Registry of Joint Stock Companies, you will already have a BN. If not, contact the CRA Business Window and explain that you want to register for HST. You will be provided with a BN application form, or you may register over the telephone.
For more information, please
contact:
Canada Revenue Agency
Ralston Building
1557 Hollis Street
P.O. Box 638
Halifax, Nova Scotia
B3J 2T5
Fax: 902-426-7170
Toll-free (information): 1-800-959-5525
Toll-free (publications): 1-800-959-2221 (Forms and publications)
Web site:
http://www.cra.gc.ca/menu-e.html
Register for Business Occupancy Tax
If you are a tenant or property owner who occupies or uses commercial space or operates a home-based business, you will be assessed for Business Occupancy Tax. There are 55 municipal units in Nova Scotia, each with its own individual tax rate. Businesses in each municipality pay a Business Occupancy Tax based on an assessment made by Service Nova Scotia and Municipal Relations.
Contact information for the assessment office closest to you can be found in the blue pages of your telephone book under "Property Assessment", "Property Information," or "Assessment."
For Service Nova Scotia and
Municipal Relations, please contact:
Service Nova Scotia and Municipal Relations
Public Enquiries
Mail room, 8 South, Maritime Centre
1505 Barrington Street
Halifax, Nova Scotia
B3J 3K5
Telephone: 902-424-5200
Fax: 902-424-0720
Toll-free (information): 1-800-670-4357
E-mail: askus@gov.ns.ca
Web site:
http://www.gov.ns.ca/snsmr
Check Zoning Regulations
Contact your municipal government concerning zoning requirements, special licenses, or permits.
For more information, please
contact:
Service Nova Scotia and Municipal Relations
Public Enquiries
Mail room, 8 South, Maritime Centre
1505 Barrington Street
Halifax, Nova Scotia
B3J 3K5
Telephone: 902-424-5200
Fax: 902-424-0720
Toll-free (information): 1-800-670-4357
E-mail: askus@gov.ns.ca
Web site:
http://www.gov.ns.ca/snsmr
Set up Business Insurance
Your business may have many assets: vehicles, an office and equipment, inventory, an indispensable employee or partner, and most importantly, yourself. To ensure your business is as risk-free as possible, business insurance is necessary. A wide variety of insurance products are available. These include the standard insurance policies covering fire, theft, or vandalism, which can offset a potentially serious loss of buildings, equipment, or inventories. It is likely that a lending institution will insist that adequate property insurance be carried as a condition for a loan. Also, life insurance is often carried on key individuals in an organization to minimize the impact of the absence of the individuals.
For more information, consult your insurance professional and see the document Business Insurance or call Canada Business - Nova Scotia at 1-888-576-4444 for a copy.
Open a Business Account
Open a current account with your bank or lender under your registered business name. It is important to discuss your new business with them and establish a line of credit.
Set up a Bookkeeping System
Good record-keeping is essential because it can:
- help you identify the sources of your income,
- result in tax savings,
- prevent most of the problems you might encounter if your income tax is audited or you have GST/HST returns,
- keep you informed about the financial position of your business, and
- help you get loans from banks and other creditors.
A bookkeeper or an accountant can help you set up your records, or you can find out more through the "Guide for Canadian Small Businesses ", or call 1-800-959-5525.
Hire Employees
When hiring employees, you must address a variety of issues such as payroll deductions, laws and regulations, occupational health and safety, and human rights. The following organizations will be able to help you with these matters:
Canada Revenue Agency: for payroll deductions information - 1-800-959-5525 or http://www.cra.gc.ca/menu-e.html .
Workers' Compensation Board of Nova Scotia: if hiring more than 3 employees - Toll Free in Mainland Nova Scotia - 1-800-870-3331 or http://www.wcb.ns.ca .
Labour Standards Office: for information on minimum wage rates, hours of work, overtime & vacation pay - 1-888-315-0110 or http://www.gov.ns.ca/lwd/employmentrights.
Occupational Health & Safety Division: for health & safety requirements - 1-800-952-2687 or http://www.gov.ns.ca/lwd/ohs .
Nova Scotia Human Rights Commission: for a Human Rights Guide - 1-877-269-7699 or http://www.gov.ns.ca/humanrights .
For more information, see the document: Human Resources Info-Guide.