[sparkling_gal]

I noticed that the taxes for small businesses are particularly attractive in Alberta. And I was wondering if anyone has started, or is planning to start a small business in Canada? If so, I have a few questions.

1) Did you start, or you anticipating starting your business as soon as you arrive? Or will you get a job first to give yourself time to research and get some Canadian experience?

2) What were your biggest challenges when starting a business in Canada? Or what do you anticipate your biggest challenges will be?

3) Had you already owned a small business in your country of origin, or was/is starting a business in Canada a completely new adventure for you?

[The Aviator]

Originally Posted by sparkling_gal I noticed that the taxes for small businesses are particularly attractive in Alberta. And I was wondering if anyone has started, or is planning to start a small business in Canada? If so, I have a few questions. 1) Did you start, or you anticipating starting your business as soon as you arrive? Or will you get a job first to give yourself time to research and get some Canadian experience? 2) What were your biggest challenges when starting a business in Canada? Or what do you anticipate your biggest challenges will be? 3) Had you already owned a small business in your country of origin, or was/is starting a business in Canada a completely new adventure for you?

Are you planning on incorporating? Otherwise business taxes are a mute point. If your business is going to be small, there may be no benefit to incorporating, then the taxes you pay would be at your personal marginal rate. There may be opportunity to expense more though.

If you have an understanding of business it is no more or less difficult in Canada than the UK.

However what affects one person, may be quite different to another. Access to financing, the industry, expertise, capital required, business acumen, personality etc.

[R I C H]

I agree with The Aviator with regard to the question of taxes, my other answers are below...

Originally Posted by sparkling_gal 1) Did you start, or you anticipating starting your business as soon as you arrive? Or will you get a job first to give yourself time to research and get some Canadian experience? I purchased land and premises upon arrival, before applying for a TWP to run the business (that was issued about 3mths later). The initial period before I was entitled to earn a living was spent setting the business up, networking, arranging supplier relationships etc. 2) What were your biggest challenges when starting a business in Canada? Or what do you anticipate your biggest challenges will be? Depends on where you are, I suspect. The biggest issue I found was the slooow speed of response and laid back attitude of suppliers and contractors. It seems nothing happens at any rate of knots in BC. That got frustrating, but you learn to adapt to their pace. 3) Had you already owned a small business in your country of origin, or was/is starting a business in Canada a completely new adventure for you? It was something new - new business sector and first time self-employed.

[JonboyE]

Originally Posted by sparkling_gal 1) Did you start, or you anticipating starting your business as soon as you arrive? Or will you get a job first to give yourself time to research and get some Canadian experience?

Job first. Because I needed the Canadian experience and ...

2) What were your biggest challenges when starting a business in Canada? Or what do you anticipate your biggest challenges will be?

Getting certified and licensed.

3) Had you already owned a small business in your country of origin, or was/is starting a business in Canada a completely new adventure for you?

I managed small businesses for other people in the UK. First time on my own.

[sparkling_gal]

Originally Posted by The Aviator Are you planning on incorporating? Otherwise business taxes are a mute point. If your business is going to be small, there may be no benefit to incorporating, then the taxes you pay would be at your personal marginal rate. There may be opportunity to expense more though. If you have an understanding of business it is no more or less difficult in Canada than the UK. However what affects one person, may be quite different to another. Access to financing, the industry, expertise, capital required, business acumen, personality etc.

Hi - do you mean the low business taxes are only available to corporations (that is the same as a limited company right?) And a sole trader would just get taxed as if they were employed?

[sparkling_gal]

Wow Rich - you were brave doing all that as soon as you arrived, especially considering you'd never been self employed before. I don't think I would have the bottle to take that route.

Jon - Like you, I think I would like to get a bit of Canadian experience. I have business experience, but not many business qualifications, so I'm studying an OU business diploma, which will hopefully help me get a job once I get over there.

[JonboyE]

Originally Posted by sparkling_gal Hi - do you mean the low business taxes are only available to corporations (that is the same as a limited company right?) And a sole trader would just get taxed as if they were employed?

Small corporations (yes, like a Ltd in the UK) are taxed at a very favourable rate on the first $400,000 to $500,000 of their active business income. However, by the time you get the money out of the corporation and into your pocket the total tax paid is the same as if you earned it as a sole proprietor.

If your business needs to re-invest its profit to achieve its aims then a corporation is the right way to go about this. Also, if your business will generate more profit than you need (we wish), then the profit can be sheltered in the corporation at a low tax rate until you need it. If your intended exit from the business is to sell it or pass it on to your family, then a corporation is the best and most tax-efficient way of doing this.

Otherwise, unless public liability is going to be an issue the additional costs of maintaining a corporation outway the advantages for many small businesses.