Starting a Business 101
Are you ready to start your own business but don't know where to begin? Don't worry, we've got you covered! In this blog post, I’ll take you through the essential steps to set up your business from scratch. From choosing the right business structure to registering your trade name, securing your website domain and everything in between - it’s about to go down. So, let's get started and make sure you have everything you need to turn your business dream into reality!
Step 1: Sole Proprietor vs. Corporation: Which Structure is Right for my Business?
First things first, let's talk about business structure. Do you want to go for a sole proprietorship or a corporation? Three considerations when determining the right structure for your business are tax implications, liability and succession planning. This is a loaded topic, so I’ve broken it down for you in a separate blog post to help you make the right decision. If you're not sure which one is right for you, check out our blog post on the topic for more information. Once you've made your decision, it's time to move on to the next step.
Step 2: Registering a Trade Name
The next thing you need to do is register your trade name. Pro tip: registering a trade name is not the same as trademarking. These two activities are often confused!
If you're going for the sole proprietorship route, it's pretty easy. Just head to your local registry and ask for a trade name registration. If you're planning to incorporate, I highly recommend talking to a lawyer to get this process started. And guess what? We've got an awesome lawyer, Hudson Law, that we highly recommend.
Step 3: Secure Your Domain and Social Media Handles
Now that you've got your business name sorted, it's time to secure your website domain and social media handles. You don't want to be caught off guard and have someone else claim your business name online. So, make sure you've got all your bases covered by securing your domain and social handles as soon as possible. I recommend you take a quick look prior to completing paperwork with a lawyer to ensure the handles are available!
Step 4: Opening a Business Bank Account
Moving on, let's talk about opening new bank accounts. I cannot stress this enough - DO NOT use your personal bank account for your business transactions. Please please please on behalf of bookkeepers and accountants everywhere… don’t do it. Mixing business and personal transactions is a recipe for administrative disaster and you could be missing out on some tax deductions as a result! Instead, open separate business bank accounts to keep everything organized and separated. And if you're feeling lost about bookkeeping and organizing your finances, be sure to check out my bookkeeping tips blog.
Step 5: Registering for GST
Now, onto sales tax. You need to figure out if you have to register for sales tax. Not sure how to register? You know I’ve got you covered with the steps outlined in this GST 101 post! It's important to make sure you have all your tax ducks in a row so you don't get into trouble down the road.
Step 6: Track and Stack your Money.
Oh, ya! Track and STACK that revenue in your business. The best way to do this is by using Quickbooks Online (QBO). I highly recommend it for all your bookkeeping needs. And if you want to learn more about organizing your finances, sign up for our Bookkeeping Bootcamp program!
Phew, that was a lot of information. But don't worry, take it one step at a time and you'll have your business up and running in no time. And remember, we're here to help every step of the way. So, what are you waiting for? Let's get started on building your dream business today!