Long before you begin looking for a new website for your business, you actually have to start the business in the first place. Sure, you’ve got a good idea, one you can market or sell, but if you don’t know the first steps, that idea won’t go anywhere. Here is how to start a business in Ontario, in 2022.
One of the first and most vital steps in launching your own business is performing market research. You need to conduct market research in order to help understand the industry you’ll be working in.
You should consider taking a deep dive into several topics, including industry research, consumer demographics and target markets, competitors, location, financing, along with your business name and online presence.
The old saying goes “a goal without a plan is just a wish,” so if you don’t want to just sit around wishing for customers, you’ve got to create a plan!
A business plan serves to explain your business idea. It contains short- and long-term goals and what resources are available when you first start your business. Writing a business plan can be daunting, because there are plenty of points to consider. Luckily, there are plenty of resources out there to help you. This includes local small business centres that only exist to help folks get their operation started.
Another early step in launching a business is deciding the ownership structure for it. There are four types of business structures in Ontario that each serve a different legal and tax purpose.
For starters, there is the sole proprietorship, which is a business owned by one person. This is the most common and easiest way to start a business. You would have full control, you can deduct losses and expenses from your personal income, and you get to keep all the profits.
However, you would also be responsible for all debts, your business name wouldn’t be protected, and your income would be taxable at your personal rate.
A partnership is a business owned by two or more people. Partners can contribute to costs and expenses, while debts are shared amongst them. Keep in mind that it might be difficult to find the right partner, and making business decisions could be more challenging as a result.
Then there are corporations, which are legal entities that keep businesses separate from their owners. This means you would have limited liability and could even transfer ownership. However, it does cost more and tax rules for corporations are quite complex. Services such as the ones provided by experts like Maxim Innovation would help with this issue, however.
Finally, a co-operative is a corporation that is organized and controlled by its members. These types of businesses can operate both for profit and not-for-profit and owners would not be responsible for any losses or debts. All decisions would be put to a vote, but it could take longer to make those decisions as a result.
Registration and Permits
If your business has employees and operates facilities in the province, it must be registered through Ontario’s Business Registry. Have a valid email address and credit card handy when you do.
While you’re at it, investigate whether your business requires a specific licence or permit to operate. The site BizPal can help. It sorts permits based on location and industry.
Death and Taxes
Most businesses in Ontario are required to register with the federal government to collect HST on taxable sales. If your business makes at least $30,000 in four consecutive quarters, it is likely you need to charge HST.
Additionally, you should consider business insurance. It can protect you and your business’ properties, operations, and ability to generate income should something bad happen. There are different types of business insurance, make sure you’re getting the one that’s right for you.
Get Ready to Launch!
There is no denying that when it comes to how to start a business in Ontario, it’s a lot of work. However, it can also be extremely rewarding, knowing that you built something yourself. However, your business won’t go far without the right marketing tools to support it. That is where Launch comes in. We offer flexible, affordable website blueprints to meet any industry need.
Browse through our library of blueprints today and let us know which one would suit you best.