What are the steps to starting a small business in Canada?

What are the steps to starting a small business in Canada?

Social media has made building a small business much more accessible. Aspiring business owners no longer require a brick-and-mortar location to generate traffic in their stores. Because of online platforms, businesses can attract online traffic and make sales through their online store front. This seriously reduces costs, maintenance, and time, which has become favourable for future business owners. Further, as social media becomes more influential in our everyday lives, we are actively seeing more people start their own businesses. Because we can regularly see people experiencing these circumstances, the process of creating something of our own has become more realistic.

Even though more small businesses are being created, and the process is appearing more casual than ever before, it is still necessary to follow the proper steps to ensure you are starting your business legally.

Some of the basic steps to get your business up and running:

  1. Selecting your business structure. There are three types of business structures: sole proprietorship, partnership, and corporation. Sole proprietorship is working as an individual owner of the business with no legal separation between you and your business. This is the most simple and common method to starting a business. There is also the option to start a partnership where you would have one or more business partner(s) who would also be owners and have influence in any decision-making process. Lastly, you could choose to incorporate your business where shareholders would hold ownership of the company.
  2. Determining your business name. When deciding on a name, you should have it reflect the service or product you are offering. You will have to first check whether your business name is already in use, and once you have come up with an original name, you can register it.
  3. Registering your business. If you decide to be the sole proprietor and register the business under your own name, you do not need to register your business. However, if you choose to be a sole proprietor registered under a business name, create a partnership, or incorporate your business, registering the name of your company is your next step.
  4. Ensuring you have the proper licensing and/or permits. Depending on what kind of business you are starting, you may need a licence or permit to start working. For example, if you are an online business looking to eventually import and export your products, you will need a federal import and export permit.

How can a lawyer help?

You may be wondering how a lawyer could help with the process of starting a business. Lawyers can be extremely beneficial to hire for this process, especially if you are looking to eventually expand your business.

KCY at LAW can help draft agreements and contracts. So, whether you are incorporating your business, building a partnership, or hiring employees; we can create these agreements and make sure there are no legal repercussions in the future.

We can also review your business plan and ensure you are preparing for the future. For example, if you plan to hire more employees, there may be certain guidelines or policies to create for an efficient work environment.

If you are in the process of starting a business and require legal advice, please contact KCY at LAW by filling in an online consultation request or contact us by phone at 905-639-0999 to book your consultation today.