Ten steps to help you build your new business from the ground up

When it comes to launching a new business, one of the most important steps will involve choosing the type of business ownership that corroborates your goals. As a Canadian business owner, you can choose among these business forms:

• A sole proprietorship — for a single owner
• A partnership — having at least two owners 
• A corporation — a legal entity that is separate from its owners

Before selecting a specific form of ownership, research on its various aspects such as filing taxes, deciding on the extent of authority you need, paying debts in case the business goes into losses from your personal assets or your company’s, administration, registration, and renewal costs.

The form of ownership you select, will have a direct impact on what the registration process will be like. No matter what business structure you go for, it’s always good to look into the details:

Know which territories and provinces you want to operate your business in and register it accordingly. In addition, request a federal business number depending on the province where you want to do business. 

When incorporating your company, you might have to choose between federal incorporation and provincial incorporation. Though the former ensures the protection of your business name, provides a distinct sense of recognition, and allows you to freely conduct business throughout Canada, it’s at discretion to make the feasible selection. Learn more about whether or not you should incorporate your business.

For registering a cooperative, several documents such as a cover letter (indicating whether it’s a non-profit housing cooperative or a worker cooperative), Form 3001- Articles of Incorporation, etc. need to be submitted.
Once you’ve looked into the details and gathered all necessary information, register your business online with the Government of Canada Opens in a new window..  

Your business will be recognized with a name. So, make sure to keep it unique, catchy, and something that perfectly matches the personality of your brand. It should be straightforward and easy to remember. After all, you won’t want to lose your customers just because you chose a non-appealing business name.

Make sure your business name is available via the Government of Canada website Opens in a new window..

Once you’ve chosen your business name, ensure to get it registered with the government Opens in a new window.. All business owners, except sole proprietors who have named their company after themselves, can register their business either as a trade name or legal corporate name.

Not every business requires to obtain GST/HST. Register for your GST/HST account via the Canada Revenue Agency Opens in a new window.. Small business owners whose gross income has been less than $30,000 CAD for the past 12 months on July 1, 2021, are exempted from registering for GST/HST As per the latest updates Opens in a new window.. Also, if your business offers legal aid services, music classes, etc., then you can receive an exemption from registering for GST/HST.

Obtaining a specific business license or permit helps your business operate legally and effectively in the given location. However, every business doesn’t need to get one. You can find permits and licenses you may require when starting or operating your business through companies such as BizPaL Opens in a new window.. 

Just like you buy an insurance policy for covering yourself and your loved ones against emergencies, plan to invest for busines insurance as well. Whether you’re just getting started, or have been running your business for some time, you can help protect yourself and your organization by understanding your insurance options Opens in a new window..

No matter how efficient and organized you are, there will be times when you’d feel the urge of hiring new employees. Familiarize yourself with the hiring process beforehand and know what documents you’d require before and during the process. 

Business owners, having a business number, can register for a Payroll Deductions account followed by employment insurance and workers’ compensation insurance for protecting their employees against unexpected times. Learn more about Payroll services Opens in a new window..

All of the above steps will be waste if you don’t implement your marketing strategy right. Identify what platforms you’ll be using for connecting with your customers and planning how to go that extra mile for meeting their needs Opens in a new window.. Lamaeh puts it perfectly: “Be creative. Always look for ways to improve your business and make it stand out from the competition.”

Besides the nitty gritty, make sure you bring your passion to the table. “One of the most important ingredients in a successful business idea is passion. It will consistently drive you to improve your process, so your business grows. Conduct market research on your industry and talk to target customers to find out your business’s potential,” says Lamaeh.

Sometimes, it helps to have a checklist so you don’t miss important tasks when launching your start-up. You can find important information for business starters on The Government of Canada Checklist for Small Businesses Opens in a new window.. 

If you’re looking to start your own business, we can help.

Connect with a dedicated CIBC Business Advisor who will work with you to understand your needs, provide expert advice and customized financial solutions. Whether you need to clarify your borrowing options, learn how to set up a business account, or you just need an extra set of eyes, we’ll make it easy for you to make your ambitions a reality.

• Need to borrow funds? We have plenty of options available for you depending on your needs. Learn more about our business loans and lines of credit.
• Need help managing your budget? Check out our cash management opportunities.
• Want to open a business account? Here are the accounts we offer to fit your business.