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How easy is it to setup a buisness ?
When I move over (whenever that maybe) id ideally like to own my own buisness, something we havn't done before.
Ive seen one thats up and running for sale or id start my own, I just wondered if anyone else has done this and is financing available ? |
Re: How easy is it to setup a buisness ?
Originally Posted by kevinm
(Post 8041510)
When I move over (whenever that maybe) id ideally like to own my own buisness, something we havn't done before.
Ive seen one thats up and running for sale or id start my own, I just wondered if anyone else has done this and is financing available ? |
Re: How easy is it to setup a buisness ?
Originally Posted by el_richo
(Post 8041524)
What type of business?
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Re: How easy is it to setup a buisness ?
Originally Posted by kevinm
(Post 8041528)
I have a couple of ideas, ones a shop and ones to do with entertainment.
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Re: How easy is it to setup a buisness ?
However, to get financing, you might also need a track record, or the backing/partnership of someone who has.
Ubnless you were able to buy one htat is up and running. It's easy to set up a corporation (from an accounting and legal perspective). Here's some links: http://sbinfocanada.about.com/od/sta...l_Business.htm I run my own business - I could do the same "job" working for someone else. Gotta say I love the tax advantages!:thumbsup: |
Re: How easy is it to setup a buisness ?
As said, setting up a business is easy. Getting finance might be a bit more of a problem. The lender will look for:
a) That the business will generate sufficient cash to make the repayments - often 3-4 times interest cost. This is where you need your business plan. b) That they will get their money back if the business does not go according to plan. You will have no track record of repaying your debts in Canada so they will want some solid assets to secure against. This usually means your home. |
Re: How easy is it to setup a buisness ?
Originally Posted by JonboyE
(Post 8041758)
b) That they will get their money back if the business does not go according to plan. You will have no track record of repaying your debts in Canada so they will want some solid assets to secure against. This usually means your home.
Never put your home up as collateral. |
Re: How easy is it to setup a buisness ?
Some basic stuff.
Do you want a proprietorship or a limited company/corporation? Do you want to operate from home (depends on the local property bylaws)? |
Re: How easy is it to setup a buisness ?
It is very easy to set up a biz. You have do a name search and register. you're be given a master business license and your need a carry your GST number around b/c most company/suppliers won't charge GST when you give them your GST number. You can also claim back the GST on business expenses. Standard leases are 5 years. Makes sure that they included TMI. I can normally talk any landlord into giving me 2-3 months free rent. I prefer malls over all. Not dying ones either. Plenty of them here. The reason I prefer malls its simple because people won't shop in the dead of winter, even on a busy street with very high traffic. also lot of towns here people simple don't walk so you need to bear that in mind and watch any location at different times of the day and week before taking the plunge.:)
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Re: How easy is it to setup a buisness ?
Originally Posted by Essex_Man
(Post 8041894)
... your need a carry your GST number around b/c most company/suppliers won't charge GST when you give them your GST number.
You can also claim back the GST on business expenses. |
Re: How easy is it to setup a buisness ?
Originally Posted by Essex_Man
(Post 8041894)
You have do a name search and register.
you're be given a master business license and your need a carry your GST number around b/c most company/suppliers won't charge GST when you give them your GST number. You can also claim back the GST on business expenses. Standard leases are 5 years. Makes sure that they included TMI. I can normally talk any landlord into giving me 2-3 months free rent. I prefer malls over all. Not dying ones either. Plenty of them here. The reason I prefer malls its simple because people won't shop in the dead of winter, even on a busy street with very high traffic. also lot of towns here people simple don't walk so you need to bear that in mind and watch any location at different times of the day and week before taking the plunge. Don't rely on conventional financing for a restaurant unless you have a high level of financial commitment yourself (50%+) and tangible security. Many people use their home as collateral, not something I would do, but depends on your risk threshold. Some it has worked for others not. If you incorporate, many lenders will ask for a personal guarantee, with this they can go after anything you own if things go wrong, including your house. However many will not lend to a new business without it, so you are between a rock and a hard place. If you have never run a business before and don't have a fimr understanding of finance. Consider doing a short course at a local college. |
Re: How easy is it to setup a buisness ?
Originally Posted by The Aviator
(Post 8041949)
Don't rely on conventional financing for a restaurant unless you have a high level of financial commitment yourself (50%+) and tangible security. Many people use their home as collateral, not something I would do, but depends on your risk threshold. Some it has worked for others not. If you incorporate, many lenders will ask for a personal guarantee, with this they can go after anything you own if things go wrong, including your house. However many will not lend to a new business without it, so you are between a rock and a hard place.
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Re: How easy is it to setup a buisness ?
Originally Posted by The Aviator
(Post 8041949)
There are no standard leases..
Originally Posted by The Aviator
(Post 8041949)
No such thing as a 'master' license.
http://cnsrenovations.ca/external_fi...ertificate.jpg And this http://www.santahwtrade.ca/images/certificate/cert1.jpg Or this from the website. Business Registration and Renewal Registering a new business online is easy and fast with the Integrated Business Services Application. In a single online session, you can register or renew your business, and apply to the Ontario Ministry of Revenue for the Retail Sales Tax (RST) and Employer Health Tax (EHT), and to the Workplace Safety and Insurance Board (WSIB). If you are registering a new business online, you can request an electronic Master Business Licence (eMBL). You will receive your eMBL by e-mail in two business days – or your money-back! Please note that terms and conditions apply. All other Master Business Licences, including business name renewals, are delivered by regular mail in 10 business days. What is a Master Business Licence? A Master Business Licence (MBL) is an official proof of your business name registration. The MBL can be used as proof of business name registration at financial institutions and to facilitate other business-related transactions with the Ontario government. The electronic Master Business Licence is a digital copy of the licence. It is sent to you by e-mail in Adobe Portable Document Format (PDF). More. How can I find out if a business name is already being used? The Enhanced Business Name Search, available through the Integrated Business Services Application, enables you to search business names that are already registered. Searches can be done on exact business names, words in a business name or by the Ontario Business Identification Number. This service has specific hours of operation and additional fees apply. More. How do I register for federal programs like the Goods and Services Tax? Business Registration Online, a program of the Canada Revenue Agency, enables businesses to register for federal programs including Goods and Services Tax/Harmonized Sales Tax, payroll deductions, corporate income tax and import/export accounts. Consult Business Registration Online for more information. What do I need to get started? Before you begin, please ensure that you meet these technical requirements. If you are registering or renewing a trade or style name for an existing corporation or for a general partnership with a corporate partner, you must also provide the corporate name and/or corporate number. How much does it cost to register or renew a business name online? The fee for a business name registration or renewal online is $60.00 How do I pay? By credit card: VISA, MasterCard or American Express. When can I register my business or renew my business name? Business name registration applications can be submitted 24 hours a day, 7 days a week. Where can I find more information about registering/renewing my business? Consult our Frequently Asked Questions. http://www.ontario.ca/en/services_fo.../STEL02_039990
Originally Posted by The Aviator
(Post 8041949)
That is for first nations only with a status card.
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Re: How easy is it to setup a buisness ?
Actually the first rule of business is
Stay in Business The second is Have an exit strategy Why do you want to run a resturant? Ramsey's series, "Kitchen Nightmares" is pretty accurate with regard to what got those restaurants into the state they were in - and you probably won't have Gordon Ramsey to come and save your ass! A business is a LOT of work. Far more than working for someone else. You have to be committed to your business goals and to your business partner in a way that regular work does not demand. Check this article out: Restaurant survival rate http://www.usatoday.com/money/smallb...-success_x.htm |
Re: How easy is it to setup a buisness ?
Originally Posted by Essex_Man
(Post 8042047)
Well normal they offer 5 year minimum. Yes, your argue the toss. But everyone one I deal with wants you to sign a 5 year lease. I've open 15 shops in Ontario and this seems standard.
Well what is this then. :confused: That a whole different matter. When I buy stationary from a whole sale or a van from auction or stock from suppliers. I give them my GST number to avoid paying or claiming GST. :) You may want to check with CRA and your accountant if you are handling the GST in the right way. The way you are doing it is quite contrary to the way we do it or have been instructed by CRA to collect and remit GST. Perhaps include a link to support this method of handling GST, I would be interested to see it. Presumably you are GST registered. |
Re: How easy is it to setup a buisness ?
Originally Posted by The Aviator
(Post 8042114)
Looks like a master business license from ON. You are however assuming the OP is going to ON.
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Re: How easy is it to setup a buisness ?
Originally Posted by JonboyE
(Post 8042032)
In my experience it is nigh on impossible to get a loan for an owner managed corporation without a personal guarantee. As one banker said, "if you are not prepared to stand behind your business why would you expect us to?"
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Re: How easy is it to setup a buisness ?
Originally Posted by Essex_Man
(Post 8042127)
I always do. Its the only civilized province. :p But I give you that. But don't start saying things you know nothing about. Check first. Google can often save you from some embarrassment. :thumbup:
Would like a link to illustrate your method of handling GST, never heard of it being done that way. |
Re: How easy is it to setup a buisness ?
I would love to have & operate my own boutique (in Ontario), but my main problem would be not knowing anything about running a small business, so I will take Aviator's advice & take a course.
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Re: How easy is it to setup a buisness ?
Originally Posted by Essex_Man
(Post 8042127)
I always do. Its the only civilized province. :p But I give you that. But don't start saying things you know nothing about. Check first. Google can often save you from some embarrassment. :thumbup:
I'm settling in with a coffee for this one :rofl::thumbup::rofl::thumbsup::rofl: |
Re: How easy is it to setup a buisness ?
Originally Posted by The Aviator
(Post 8042131)
Don't do business with a supplier that wants a personal guarantees either. Has not been an issue for us so far.
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Re: How easy is it to setup a buisness ?
Originally Posted by Almost Canadian
(Post 8042184)
I can only assume that your suppliers never have to send significant invoices to you, either that or they have little business sense:thumbsup:
It's never been an issue for us or caused a problem. Many also take Visa so we get lots of points too. |
Re: How easy is it to setup a buisness ?
Originally Posted by The Aviator
(Post 8042137)
best not to make sweeping statements and mislead people into thinking provincial procedures are the same across the country, which they are not.
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Re: How easy is it to setup a buisness ?
Originally Posted by Essex_Man
(Post 8042308)
LOL...Yer like you wert doing. :rolleyes:
I am however waiting for the link to the GST info you mentioned, I am interested in finding out more as it would simplify our GST returns and book keeping no end doing it this way. Google might help! What's a Yer and a wert? |
Re: How easy is it to setup a buisness ?
Originally Posted by The Aviator
(Post 8042290)
Depends on what you call significant, or maybe you shouldn't assume (not good accounting practice to make assumptions), high 6 figures? Maybe they think we're trustworthy and value our business. We buy lots, they are national and international organisations, in Canada, US, Australia and Europe.
Then they have poor business sense. Providing supplies with a value of $100,000+ to a start up corporation without obtaining personal guarantees is a very risky thing to do (particularly one that refuses to provide personal guarantees when asked). I appreciate that you may have had to build up a relationship with them for a period of time before they did so but that iss not relevant to the OP's position. |
Re: How easy is it to setup a buisness ?
Originally Posted by The Aviator
(Post 8042318)
Yes you are right, I erred in making an assumption based on the provinces we deal in, which was misleading.
I am however waiting for the link to the GST info you mentioned, I am interested in finding out more as it would simplify our GST returns and book keeping no end doing it this way. Google might help! What's a Yer and a wert? |
Re: How easy is it to setup a buisness ?
Originally Posted by Almost Canadian
(Post 8042384)
Then they have poor business sense. Providing supplies with a value of $100,000+ to a start up corporation without obtaining personal guarantees is a very risky thing to do (particularly one that refuses to provide personal guarantees when asked). I appreciate that you may have had to build up a relationship with them for a period of time before they did so but that iss not relevant to the OP's position.
I agree for a new business the chances of getting credit without personal guarantees are next to impossible. From institutional lenders though, it does depend on what security is offered. For years we used to give credit without guarantees, have not had one bad debt. Alas in the current economic climate we are getting more cautious and have just had to start taking credit aps and guarantees from new customers that we don't know. |
Re: How easy is it to setup a buisness ?
Originally Posted by Essex_Man
(Post 8042405)
:blink: Yer like i wanna to help you now. :huh:
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Re: How easy is it to setup a buisness ?
Originally Posted by The Aviator
(Post 8042421)
There are three ways to deal with ITCs, the regular way when filing a return and tracking inputs and outputs and two easy ways, the simplified method (under $500,000 in sales) and the quick method (under $200,000 in sales). There is no allowance for claiming a GST exemption at POS other than for first nations with a status card. You may be well advised to have a chat with your accountant.
Purchases Not Subject to GST The Purchasing Department will generally indicate the GST status on purchase orders. When in doubt as to whether GST should apply on an invoice, contact either Purchasing or Accounting Services. The following items may be generally purchased by the University without paying GST: * salaries, wages and most employee benefit payments; * interest, insurance premiums and most other financial services; * most groceries; * purchases from "small suppliers", being individuals and companies with less than $30,000 of taxable sales in the previous 4 calendar quarters. * purchases by one University department from another; * purchases from TRIUMF, or the federal Centres of Excellence; * most purchases of services from other registered charities, including all Canadian university inter-library loans, consulting fees, etc. * goods provided by a registered charity including all universities in Canada, at nominal cost being where no markup has been added by the seller; * Provincial sales and hotel room taxes; * voluntary tips and gratuities; * penalties and fines; * B.C. Ferry and Coquihalla Highway, etc. provincial tolls; and * airfares from Canada to destinations outside continental U.S.A. and Canada. |
Re: How easy is it to setup a buisness ?
Originally Posted by Essex_Man
(Post 8043734)
http://www.finance.ubc.ca/ap/GSTOverview.cfm
Purchases Not Subject to GST But this is not what you said originally, you said by giving your GST number you did not pay GST at the POS, which is entirely different. You may also be better to get your references from the CRA website than a university. CRA make and enforce the rules. There are some items that are exempt of GST as listed in the link you provided, however the items you listed earlier are not exempt items. If you purchase from a vendor who is below the GST threshold and not registered you don't need to give them any numbers, they should not be charging GST as a separate tax. |
Re: How easy is it to setup a buisness ?
Originally Posted by The Aviator
(Post 8044331)
But this is not what you said originally, you said by giving your GST number you did not pay GST at the POS
Not in a store no. That is not what I said. You know like buying shopping that kinda of store. But from suppliers yes. Auctions, printers, Bla bla. Phone an auction house, tell them you are dealer and would like to register and you have a GST number, then asked does that mean I won't pay GST. If I have a GST Number. Do you think I just make up shit for the fun of. You seem to think I'm lying at every turn here. like i'm sad sad ****, who gets a kick out of making up shit on the net. That's all I going to say. You think and say what you like. I give up trolls and know it all like you. :thumbdown: |
Re: How easy is it to setup a buisness ?
Originally Posted by Essex_Man
(Post 8044413)
Look that was only thing i could find on the net. That was in BC and show what you can do if you had a business with a GST Number
Not in a store no. That is not what I said. You know like buying shopping that kinda of store. But from suppliers yes. Auctions, printers, Bla bla. Phone an auction house, tell them you are dealer and would like to register and you have a GST number, then asked does that mean I won't pay GST. If I have a GST Number. Do you think I just make up shit for the fun of. You seem to think I'm lying at every turn here. like i'm sad sad ****, who gets a kick out of making up shit on the net. That's all I going to say. You think and say what you like. I give up trolls and know it all like you. :thumbdown: |
Re: How easy is it to setup a buisness ?
I am sure Essex_Man is mixing up GST with PST.
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Re: How easy is it to setup a buisness ?
Originally Posted by JonboyE
(Post 8044692)
I am sure Essex_Man is mixing up GST with PST.
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Re: How easy is it to setup a buisness ?
You can't mess around with GST: one little audit can ruin your month, if not your year! Get professional advice about GST.
Oh, yeah - and stick with the advice! |
Re: How easy is it to setup a buisness ?
Originally Posted by triumphguy
(Post 8044817)
You can't mess around with GST: one little audit can ruin your month, if not your year!
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Re: How easy is it to setup a buisness ?
And you haev to sit with them for up to 8 days while they go through all your personal and business finances.
8 days you cannot work. |
Re: How easy is it to setup a buisness ?
Originally Posted by triumphguy
(Post 8046435)
And you haev to sit with them for up to 8 days while they go through all your personal and business finances.
8 days you cannot work. |
Re: How easy is it to setup a buisness ?
Originally Posted by The Aviator
(Post 8046438)
So, you've been there?
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