Stating your own business.......it's not that easy as you think *ahem* *ahem*

04/05/07

This week was actually a really, really long week. So happy to find out that today is Friday. Today's computer class was a long day because we learned a lot of stuff today that's going to help us for the summative. We were actually supposed to look at two websites to learn more information about creating your business. Down below you can find some information about some topics.

Registering your business name: this is self explanatory. Over here, you have to register your business name. But there are few rules that you have to follow for this. If your business name is your actual name then you don't have to register. There is a specific fee to register your business name and that is $60 if your registering through Ontario Business Connects and $80 if your registering through mail. The name will expire in 5 years. Also, before you register the name you have to make sure that no one else has that name. If they do then you have to find another one. You have to pay $12 to check if your name is actually in use or not.

Taxes (income tax): you have to pay both the provincial and federal government. This money is based to how much profit you make minus the amount of your expenses. Expenses like
office rent and maintenance, mortgage interest and property taxes on property you own and use in your business, leased equipment, cost of buying or manufacturing any goods you sell, delivery, freight and transportation expenses, utilities, insurance premiums, fees for licences and permits fees for membership in a trade or commercial association, legal, accounting and other, professional fees, advertising, travel, employee salaries, etc.

Business records: you are supposed to keep a book of records by law. You're supposed to keep them for six years after you have did your taxes. If you have a good accountant then he or she will do that for you.

Licenses: for most of the businesses you need to get a licence from either federal, municipal or provincial government. The licence includes things like the location of your business and the qualifications of your employees.

Zoning: "All municipalities have zoning and building regulations" You have to check with your municipality authorities.

Insurance: what if you make a damage in your business? Then insurance is what protects you from it. There are many different types of insurances. Some of them are property insurance, business interruption insurance, general liability insurance, key person insurance, disability insurance, errors and omissions insurance. There is an agent or broker who would arrange the insurance for you.

Renting or buying premises: if you don't have a home-based business then you need to rent or buy premises. In order to decide if either you need to rent or buy premises you need to look at a couple of things. Some of them are: what kind of space you're looking for, security, parking, the amount of money you're willing to pay, etc. If you decide to rent a place instead of buying it then you have to sign a lease with the owner. On the other hand if you decide to buy it then you need to find a real estate agent.

Business communications: communication is really important in businesses. You have to be able to interact with your customers in one way or another. You can get some business tools like: computer/laptops, some kind of software (word processing, accounting, presentations, videoconferencing), a cell phone, etc. It's also good to have some kind of website for your customers.

Hiring employees: when you first start your business you may not need employees but you may want to think of them as your business gets bigger and better. When you start to hire employees you may want to look at a couple of things. They are: paying them on a regularly, training your employees, maintaining the records of your employees, etc. Also, you have to look at the Employment Standards Act which includes things like: hours of work, minimum wage, public holidays, overtime pay, vacation pay, benefit plans, pregnancy leave and parental leave, etc.