So you want to start up a new business venture. That’s great! Having the right professional assist you in building a strong financial foundation for your business is a good place to start. At our firm we can help you get started by sorting out the various options. In fact, leave the “red tape” issues to us and allow us to be your “right hand” advisor in the growth of your business.
Issues to consider during start up include:
- Developing a Business Plan – This document outlines the purpose of your business and provides a sense of direction. It will include a financial budget or forecast that can be used to obtain start up financing.
- Selecting a Legal Entity – You need to determine you business structure. The three basic forms of business organization are proprietorship, partnership and corporation. Taxation and limited liability issues should be addressed in choosing the right structure for you.
- Selecting a Year-End – Selection of a fiscal year-end is dependent upon seasonal fluctuations and the legal entity chosen.
- Registering With Various Government Authorities - Including Business Number, GST, PST, Employee Source Deductions, WSIB, and business name registration.
- Accounting and Bookkeeping – Selection of appropriate accounting software is necessary for tracking operations and government reporting.
- Payroll - Record-keeping and reporting to government and employees, including Workers Compensation Safety and Insurance Board (WSIB).
- Owner/Manager Remuneration - If a corporation is chosen, a plan for remuneration for the owner/manager is required to determine how you will extract cash from the company. This requires a review of personal and corporate tax planning for all family members active in the business.
- Income Taxes - Tax planning should start before the fiscal year is complete. Proactive planning generally leads to better results than reactive planning. Knowing how much cash to set aside for income taxes is critical in planning cash flow for any start up organization.
- Cash Planning and Budgeting – Annual budgets and cash flows are an effective tool to help manage any business. It also allows management to monitor actual results against their plan and take the necessary steps to assess operations on a timely basis.
- Obtaining Credit and Financing – Long-term assets should be financed with long term debt. Short-term working capital needs for inventory and accounts receivable should be financed with lines of credit. Assessing and planning for financing is critical for start-up costs, purchasing assets or covering working capital requirements.
- Helpful resource – You can obtain a Canada-Ontario business start-up guide by linking up to the following website - Ontario Ministry of Economic Development and Innovation