Brian Shaw: Partner, Dale Matheson Carr-Hilton Labonte – Chartered Accountants & Business Advisors
The path to becoming self-employed may seem daunting at first. However, with proper planning and guidance you can be in control of your own success.
Here are five tips to put you on the right track to becoming your own boss:
•Prepare a business plan. A well-thought-out business plan will benefit you in many ways. It will help you secure financing from possible lenders and investors and show your employees and partners that you are informed and prepared. It will help you identify your customers and competition and will determine your financial needs.
•Decide on a business structure. You will need to decide whether to operate your business inside a corporation. You should ask your lawyer and accountant for advice in this area. If you choose to set up a corporation you will need professional advice regarding the share capital structure.
•Understand taxes. Register for harmonized sales tax. You will need to register for HST if your gross income exceeds $30,000. However, you should register to take advantage of input tax credits. Ask your accountant about any tax refunds and credits that may affect your business. (See Dalton Green column, next page.)
•Set up payroll. You will need to register with CRA and activate a payroll account. Accounting software packages such as QuickBooks and Simply Accounting have payroll modules that can be used. Alternatively, outside payroll service companies such as Ceridian offer an affordable option.
•Create an accounting system. Once your business is up and running you will need timely, reliable accounting information. An accountant may be able to recommend a reliable bookkeeper. QuickBooks and Simply Accounting will also allow you to track your invoices and produce timely reports. •
