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Economic Partners Sudbury East / West Nipissing Inc., is a community-based, non-profit organization that is dedicated to creating opportunities for entrepreneurship and to the pursuit of economic growth in our community. We are your local branch of the Community Futures Development Corporation (CFDC) and a member of the Community Futures Ontario (CFO). Funded
2017
Business Start-up Information
Business Start-Up Information 2017
by Industry Canada and FedNor, CFDC is a community economic development initiative designed to help find local solutions for local economies.
Who We ServeWe service a total catchment population of 21,277 people that includes the following communities:
Sudbury East Dokis First Nation French River Markstay-Warren St. Charles
West Nipissing Nipissing First Nation Nipissing
What We Do We are people helping people. Run by a board of local volunteers and professional staff, we take a grass roots approach to investing in local entrepreneurs, exporters, and community initiatives.
Here are the key services that we offer you:
Community economic planning and development Access to funding for community projects and small businesses Business counselling, services, and resources
30 Front Street, Unit ASturgeon Falls, ON P2B 3L4Telephone: 705-753-5450
Fax: 705-753-3456Website: www.economicpartners.comEmail: [email protected]
Table of Contents____________________________________________
Business Start-Up Checklist....................................................................................................................4
Business Structures..................................................................................................................................5
Option 1: Sole Proprietorship..............................................................................................................5
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Business Start-Up Information 2017
Option 2: Partnerships.........................................................................................................................6
Option 3: Corporations.........................................................................................................................8
Option 4: Cooperatives........................................................................................................................9
Licenses, Permits and Registrations....................................................................................................10
Municipal..............................................................................................................................................11
Provincial..............................................................................................................................................12
Master Business License...............................................................................................................12
Ontario’s Workplace Safety and Insurance Board.....................................................................13
Ontario’s Employer Health Tax (EHT)..........................................................................................15
Ontario’s Employment Standards.................................................................................................16
Ontario Tax Services (ONT-TAXS)..............................................................................................17
Federal.................................................................................................................................................18
GST/HST..........................................................................................................................................18
Payroll Deductions (Source Deductions).....................................................................................19
Business Insurance................................................................................................................................20
Industry Specific Contacts.....................................................................................................................20
Useful Internet Sites...............................................................................................................................21
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Business Start-Up Information 2017
Business Start-Up Checklist ____________________________________
Business Preparation
Business idea
Choose an option (start a new business, buy an existing one or purchase a franchise)
Choose ownership (sole proprietorship, partnership, or corporation)
Choose your business name
Prepare a business plan
Business Start-Up
Register your business name with the province of Ontario (Master Business License)
Register for HST/GST and/or payroll deductions with Canada Revenue Agency (if
applicable)
Check zoning and land use regulations with the municipality
Register and apply for all municipal licenses and permits (if applicable)
Contact the Ministry of Labour for any Employment Standard questions
Register with Workplace Safety and Insurance Board (if applicable)
Register with industry specific agencies (if applicable)
Open a business bank account
Lease or purchase appropriate business premises and equipment
Purchase appropriate insurance for your business activities
Interview and hire expert help (lawyer, accountant)
Determine your employee needs and hire capable people (if applicable)
Determine your marketing initiatives and launch them
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Business Start-Up Information 2017
Business Structures
Choosing the structure that is suitable for your business can sometimes be challenging. However, it is wise to evaluate each form of business organization to determine which one is appropriate.
Now that you have decided on starting your own business, you will have to determine what business structure or form of organization suits your needs. The structure of your business will depend on whether you want to run your business yourself, with a partner, or associates.
There are four types of business structures:
Sole proprietorship
Partnerships
Corporations
Cooperatives
Option 1: Sole Proprietorship
With this type of business organization, you would be fully responsible for all debts and obligations related to your business and all profits would be yours alone to keep. As a sole owner of the business, a creditor can make a claim against your personal or business assets to pay off any debt.
This form of business organization is the most simple and common for self-employed people. Any income generated and expenses incurred are claimed through personal income taxes each year.
If the business will operate in your given name, you are not required to register the business. If you attach any word to your given name, you are required to register under the Business Names Act.
Example:Frank Ford – Does not need to registerFrank Ford Trucks – Needs to register
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Advantages:
Easy and inexpensive to form a sole proprietorship (you will only need to register your
business name provincially, except in Newfoundland and Labrador);
Relatively low cost to start your business
Lowest amount of regulatory burden
Direct control of decision making
Minimal working capital required to start-up
Tax advantages if your business is not doing well, for example, deducting your losses
from your personal income and lower tax bracket when profits are low
All profits will go to you directly
Disadvantages:
Unlimited liability (if you have business debts, personal assets would be used to pay off
the debt)
Income would be taxable at your personal rate and, if your business is profitable, this
may put you in a higher tax bracket
Lack of continuity for your business, if you need to be absent
Difficulty raising capital on your own
Option 2: Partnerships
A partnership would be a good business structure if you want to carry on a business with a partner and you do not wish to incorporate your business. With a partnership, you would combine your financial resources with your partner into the business.
You can establish the terms of your business with your partner and protect yourself in case of a disagreement or dissolution by drawing up a specific business agreement. As a partner, you would share in the profits of your business according to the terms of your agreement.
You may also be interested in a limited liability partnership in the business. This means that you would not take part in the control or management of the business, but would be liable for debts to a specified extent only. There must be at least one managing partner, and that one partner has unlimited liability. The limited partner will become a general partner if they take on ANY part of management in the partnership.
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When establishing a partnership, you should have a partnership agreement drawn up with the assistance of a lawyer, to ensure that:
You are protecting your interests
That you have clearly established the terms of the partnership with regards to issues like
profit sharing and dissolving the partnership
That you meet the legal requirements for a limited partnership (if applicable)
Advantages:
Easy to start-up a partnership
Start-up costs would be shared equally with you and your partner
Equal share in the management, profits and assets
Tax advantage, if income from the partnership is low or loses money (you and your
partner include your share of the partnership in your individual tax return)
Disadvantages:
Similar to sole proprietorship, as there is no legal difference between you and your
business
Unlimited liability (if you have business debts, personal assets would be used to pay off
the debt)
Hard to find a suitable partner
Possible development of conflict between you and your partner
You are held financially responsible for business decisions made by your partner (for
example, contracts that are broken)
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Option 3: Corporations
Another business structure is to incorporate your business. This can be done at the federal or provincial level. When you incorporate your business, it is considered to be a legal entity that is separate from the owners and shareholders. As a shareholder of a corporation, you will not be personally liable for the debts, obligations or acts of the corporation.
Advantages:
Limited liability
Ownership is transferable
Continuous existence
Separate legal entity
Easier to raise capital
Possible tax advantage as taxes may be lower for an incorporated business
Disadvantages:
A corporation is closely regulated
More expensive to incorporate than a partnership or sole proprietorship
Extensive corporate records required, including shareholder and director meetings, and
documentation filed annually with the government
Possible conflict between shareholders and directors
Possible problem with residency of directors, if they are in another province or the
majority are not Canadian
It is important to note:
If the owner personally guarantees a contract, then that owner is taking on liability
If the owner personally does something that affects the business, they will be held
responsible/liable
If the owner files the incorporation papers themselves, if there are any mistakes or
missing clauses, they would again become personally liable
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If you have decided to incorporate your business, you have some options to consider.
1. Two types of Incorporation: Provincial Federal
2. Incorporating the business name (IE. Ford Inc.)OrRegistering as a numbered company (IE. 123456 Ford Ltd.)
3. Two options for filing the Articles of Incorporation Independently (file by yourself) Hiring a lawyer to complete the process on your behalf (suggested)
Note:If you register as a numbered company and you wish to use an “operating as” name, you must register that name under the corporation with the province (Master Business License).
Option 4: Cooperatives
The last business structure you could create is a cooperative. With a cooperative, you would have a business that would be owned by an association of members. This is the least common form of business, but can be appropriate in situations where a group of persons or businesses decide to pool their resources to provide access to common needs, such as the delivery of products or services, the sale of products or services, employment, and more.
Advantages:
Owned and controlled by members
Democratic control (one member, one vote)
Limited liability
Profit distribution
Disadvantages:
Possible conflict between members
Longer decision-making process
Participation of members needed for success
Extensive record keeping
Less incentive to invest additional capitalPage 9 of 22
Business Start-Up Information 2017
Licenses, Permits and Registrations
This checklist shows the different licenses, permits, or registrations that you may be required to obtain from the different level of governments.
Municipal
Licenses and Permits
Zoning Regulations
Provincial
Provincial Incorporation
Master Business License
WSIB Insurance
Employer Health Tax (EHT)
Ministry of Labour
Federal
Federal Incorporation
GST/HST
Payroll Deductions
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Business Start-Up Information 2017
Municipal
Ensure that you review the business licenses, by-laws, zoning, and business taxes with your Municipality.
The Corporation of the Municipality of West Nipissing225 Holditch Street, Suite 101Sturgeon Falls, Ontario P2B 1T1Tel: (705) 753-2250Fax: (705) 753-3950www.westnipissingouest.ca
Nipissing First Nation36 Semo RoadGarden Village, ON P2B 3K2Tel: (705) 753-2050Fax: (705) 753-0207www.nfn.ca
Dokis First Nation940-A Main StreetDokis, ON P0M 2N1Tel: (705) 763-2200Fax: (705) 763-2087www.dokisfirstnation.com
The Corporation of the Municipality of St. Charles2 King St ESt.-Charles, ON P0M 2W0Tel: (705) 867-2032 Fax: (705) 867-5789www.stcharlesontario.ca
The Corporation of the Municipality of French River44 St. Christophe Street, Suite 1Noelville, Ontario P0M 2N0Tel: (705) 898-2294Fax: (705) 898-2181www.frenchriver.ca
The Corporation of the Municipality of Markstay-Warren21 Main St S, Markstay, ON P0M 2G0Tel: (705) 853-4536Fax: (705) 853-4964www.markstay-warren.ca
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Business Start-Up Information 2017
Provincial
Master Business License
This license is required for all businesses operating in Ontario under a trade/business name. The license allows the business to advertise the name and to open a business bank account. Financial institutions require proof of registration to open a business account. The Master Business License will provide them with the business identification number (9 digit ID number).
Registration Activity Cost
Sole Proprietorship $60Partnership $60Name Check $8Online Registration $60Current fees* (as of Nov 2016)
Please Note: You are only able to search for records in the Ministry of Government Services' current database. The database only contains business names registered within the past five years.
Also, the registration of the business name does not grant you exclusive use of the name. In order to legally protect your business name, you would have to register a trademark/trade name or incorporate that name in the area you wish to be protected.
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To register and/or obtain more information, contact:
In person: Economic Partners Sudbury East/West Nipissing Inc.30 Front Street, Unit ASturgeon Falls, ON P2B 3L4705-753-5450(payment by credit card only)
Service OntarioUnit 111, 447 McKeown Avenue North Bay, ONGeneral Inquiries: 1-800-267-8097(payment by credit card or cash)
Online: https://www.ibsa.serviceontario.ca/ibsa/servlet/com.visionmax.servlet . CommandServlet?command=screenflownoscript&screenid=26
By phone: Service OntarioToll-free 1-800-267-8097
By mail: Ministry of Government Services393 University AvenueToronto, ON M5G 2M2$80.00 fee
Sole proprietorship or partnerships in Ontario are registered through Ontario Business Connects(OBC). These consist of workstations in business help centers, and registration can also be done online. Your business registration is valid for five years, after which time you need to renew your registration.
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Ontario’s Workplace Safety and Insurance Board(Formerly Worker’s Compensation)
Most businesses in Ontario must register with the WSIB within 10 days of hiring their first worker. Registering provides workplace insurance coverage for all of your workers, gives you peace of mind, and lets you access experts in health and safety.
The benefits of registration are clear:
No-fault insurance
Greater protection, since in most cases workers can't sue you following a work-related
injury or illness
Benefits for your workers — WSIB insurance replaces lost earnings and covers health
care costs resulting from work-related injuries and illnesses
Help in returning your workers to the job — and returning your business to full
productivity
Training and prevention programs
To register and/or obtain more information, contact:
Registration Hotline at 1-866-734-9742
Workplace Safety and Insurance Board128 McIntyre Street WestNorth Bay, ONP1B 2Y6Tel: 705-472-52001-800-461-9521www.wsib.on.ca
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Ontario’s Employer Health Tax (EHT)
The Employer Health Tax is a payroll tax that applies to all employers in Ontario. Eligible employers do not pay tax on the first $400,000 of annual Ontario payroll. If you are associated with another employer, you have to share the tax exemption.
You have to pay EHT if you are an employer and you:
Have employees who report for work at your permanent establishment in Ontario
Pay your employees from your Ontario permanent establishment if they don't report for
work at your permanent establishment
Have Ontario remuneration over your share of the tax exemption
To register for an EHT account you must provide the following information:
Legal name
Trade name
Business address
Mailing address
Telephone and fax numbers
Name of contact person or authorized representative
Payroll start date
Payroll frequency and amount to determine if you are a yearly, monthly or special filer
Federal business number
Employer type to determine if you are an associated employer, multiple account
employer or public sector employer
To register and/or obtain further information, contact:
Employer Health TaxThe Ministry of Revenue toll-free at 1 866 ONT-TAXS (1 866 668-8297)http://www.rev.gov.on.ca/en/tax/eht/
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Ontario’s Employment Standards
Fairness in the workplace is the right of all Ontarians.Employment standards are enforced under the Employment Standards Act, 2000 (ESA), which sets out the minimum standards that employers and employees must follow.
The Ministry of Labour, through its Employment Standards Program:
Enforces the ESA and its regulations
Provides information and education to employers and employees, making it easier for
people to understand and comply voluntarily
Investigates possible violations
Resolves complaints
To obtain more information, contact:
Employment Standards Information Centre1-416–326–7160 1–800–531–5551 (Toll–free)http://www.labour.gov.on.ca/english/es/
Ontario Ministry of Labour159 Cedar StreetSudbury, ONP3E 6A5 Fax: 1-705-564-7435
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Ontario Tax Services (ONT-TAXS)
At the Ministry of Revenue we continuously address the changing needs of Ontario's 600,000 tax clients and have made it simpler for Ontario businesses to comply with their tax obligations. Businesses will now find themselves more connected and dealing with less paper.
Some of our improvements include:
One toll-free number; 1 866 ONT-TAXS (1 866 668-8297)
One business number;
New Internet services providing self-serve options
System improvements to provide you with convenient one-window service delivery.
To register and/or obtain more information, contact:
Ontario Tax Services1 866 ONT-TAXShttp://www.rev.gov.on.ca/en/services/onttaxs/index.html
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Federal
GST/HST
As of July 1, 2010, Ontario harmonized its retail sales tax with the GST to implement the HST at the rate of 13%. The HST rate of 13% includes the 5% federal part and 8% provincial part.
To register and/or obtain more information, contact:
Canada Revenue Agency 1-800-959-5525www.cra.gc.ca
Before you register, you need to know the following information:
Social Insurance Number
Business structure
Name of business
Location of business
Business activity
Representative/contact person
Obligations
Sales amount/reporting period
Fiscal year-end
Effective date
Accounting periods
The BN is a numbering system that simplifies and streamlines the way businesses deal with the federal government. It is based on the idea of one business, one number. Not all businesses require a BN and CRA program accounts.
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Payroll Deductions (Source Deductions)
As an employer, trustee, or payer, you are responsible for deducting Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums and income tax from remuneration or other types of income you pay, remitting them to us and reporting them on the applicable slips. After you have made the deductions, you have to remit these deductions, plus your share, to us. You then report the employee's income and deductions on the appropriate information return.
Income TaxAs an employer, you are responsible for deducting income tax from the remuneration or other income you pay. There is no age limit for deducting income tax and there is no employer contribution required.http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/ncmtx/menu-eng.html
Canada Pension Plan (CPP)You have to deduct CPP contributions from an employee's remuneration if that employee:
Is 18 years or older, but younger than 70; Is in pensionable employment during the year; Is not considered to be disabled under the CPP or QPP; and Does not receive a CPP or QPP retirement pension
As an employer, you must also contribute the same amount of CPP that you deduct from your employees' remuneration.http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/cpp-rpc/menu-eng.html
Employment Insurance (EI)
You have to deduct EI premiums from your employees insurable earnings on each dollar up to the yearly maximum. As an employer, you must also contribute 1.4 times the EI premium withheld for each employee.Insurable employment includes most employment in Canada under a contract of service (employer-employee relationship).There is no age limit for deducting EI premiums.http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/ei/menu-eng.html
To register and/or obtain more information, contact:
Canada Revenue Agency1-800-959-5525www.cra-arc.gc.ca
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Business Insurance ___________________________________________
Insurance needs will vary with different types of businesses. Insurance coverage at some level is required by most businesses and is usually necessary as a condition of a loan from a financial institution. As a sole proprietor, having sufficient insurance coverage is especially important because you are personally liable for all debts.
For those of you that are starting a home-based business, your existing homeowner’s policy does not automatically cover business assets and operations. The latter also holds true for vehicle insurance policies.
There are several types of commercial insurance to consider for your business, some of which include:
Liability insurance
Home insurance
Vehicle insurance
Disability insurance
Property insurance
Contact an insurance broker to discuss your specific business insurance needs.
Industry Specific Contacts _____________________________________
For information on industry specific guides, please visit
Canada Business Network:www.canadabusiness.ca1-888-745-8888
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Useful Websites ______________________________________________
General Information
Economic Partners Sudbury East/West Nipissing Inc. www.economicpartners.comCanada Business Network www.canadabusiness.caBusiness Development Bank of Canada www.bdc.ca
Market Research Canada Business Network www.canadabusiness.caStatsCan www.statcan.gc.caThe Corporation of the Municipality of West Nipissing www.westnipissingouest.caInnovation, Science and Economic Development Canada www.ic.gc.ca
Others
Provincial
Ministry of Finance www.fin.gov.on.caNorthern Ontario Heritage Fund Corporation www.nohfc.cae-Laws www.ontario.ca/laws
Federal
Service Canada www.servicecanada.gc.caCanada Revenue Agency (GST/HST, payroll, etc.) www.cra-arc.gc.caCanadian Intellectual Property Office (patents, trademarks, etc.) www.cipo.ic.gc.caCanadian Boarder Services Agency (Import, Export) www.cbsa.gc.caInnovation, Science and Economic Development Canada www.ic.gc.caFedNor www.fednor.gc.ca
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30 Front Street, Unit ASturgeon Falls, ON P2B 3L4
Tel: 705-753-5450 / 1-866-448-4478Fax: 705-753-3456
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