NorthVetted

Topic

Starting a business

The decisions you make in your first month: business structure, registration, sales tax accounts, and the software to run it all.

3 articles

Where to start

Most owners start by choosing a structure. A Canadian-controlled private corporation pays the 9% federal small business rate on the first $500,000 of active business income, but incorporating costs $200 federally or $300 in Ontario and adds a corporate tax return. A sole proprietor pays both the employee and employer halves of CPP.

If you incorporate, the next decision is how to pay yourself. Salary builds RRSP room and CPP; dividends do neither. Registration comes next: in Ontario, a business name costs $60 online and lasts 5 years. Then check whether you need a GST/HST account.

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