How easy is it to setup a buisness ?
Oct 24th 2009 | 2:24 am
#1
Thread Starter
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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 ?
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 ?
Oct 24th 2009 | 2:28 am
#2
Beep
Joined: Jan 2009
Posts: 8,311
From: Here
Re: How easy is it to setup a buisness ?
Oct 24th 2009 | 2:53 am
#5
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Joined: Dec 2007
Posts: 2,092
From: Calgary
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!
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!
Oct 24th 2009 | 4:47 am
#6
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Joined: Jul 2007
Posts: 11,708
From: White Rock BC
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.
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.
Oct 24th 2009 | 4:56 am
#7
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From: Calgary
Re: How easy is it to setup a buisness ?
Never put your home up as collateral.
Oct 24th 2009 | 5:34 am
#8
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From: Eastern Ontario, Canada
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)?
Do you want a proprietorship or a limited company/corporation?
Do you want to operate from home (depends on the local property bylaws)?
Oct 24th 2009 | 5:52 am
#9
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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.
Oct 24th 2009 | 6:31 am
#11
Joined: Sep 2008
Posts: 12,830
Re: How easy is it to setup a buisness ?
You don't have to for a proprietorship or partnership, but it is wise to do so. If you are trading under your own name it is not necessary. This is provincial as a rule for small business.
You won't, you would need to apply for that from the municipality to be able to do business in that area. No such thing as a 'master' license.
That is for first nations only with a status card. If setting up in a province with provincial tax, through the one stop registration you should register for PST. If you are purchasing for resale, then PST is not charged so long as you have your PST number. Anything you buy for use within the business is PST taxable, even if you have a number. You will have to expense the PST. For those with HST (comes out in July 2010 for BC) you can claim the whole lot back.
Only if you are registered for GST. It is not automatic. Above $30000 revenue it is compulsory, below it is voluntary. Works the same way as VAT in the UK.
There are no standard leases. If you lease get a lawyer to look the lease over. If you have a Realtor (good idea for starting out) they can help you negotiate terms. Selecting the location is of paramount importance. Depends what you want to do as to where you would consider starting. A mall would not be a good location for a restaurant, unless you want to cater to only lunch time traffic for example. Look to where your customers go. Many restaurants do well in small strip malls and some as stand alone. It all depends on what you have to offer.
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.
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.
Last edited by Aviator; Oct 24th 2009 at 6:38 am.
Oct 24th 2009 | 7:21 am
#12
Binned by Muderators
Joined: Jul 2007
Posts: 11,708
From: White Rock BC
Re: How easy is it to setup a buisness ?
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.
Oct 24th 2009 | 7:31 am
#13
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Joined: Feb 2009
Posts: 362
Re: How easy is it to setup a buisness ?
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.
And this
Or this from the website.
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.
Well what is this then.
And this
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
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
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.
Last edited by Essex_Man; Oct 24th 2009 at 7:50 am.
Oct 24th 2009 | 7:32 am
#14
BE Forum Addict
Joined: Dec 2007
Posts: 2,092
From: Calgary
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
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
Oct 24th 2009 | 8:09 am
#15
Joined: Sep 2008
Posts: 12,830
Re: How easy is it to setup a buisness ?
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.
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.
Well what is this then.
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.
