Even though there are rules and regulations that would-be business owners need to follow in Canada, it was still ranked as the third best place in the world to start a business in 2016. In 2019 according to the World Bank’s Doing Business it only took one procedure and an average of five days to register a firm. However, the ease of doing business ranks at 22 in a range of 1–190.
If you are considering starting a business in Canada, here are some things you should know:
Financing: Most business start-ups are financed by their owners using their own money. Most Canadian small business start with less than $5000 according to an Intuit Canada study of entrepreneurship. There are few grants for Canadian start-ups and those available are usually specific to particular industries, locations such as Northern Ontario and groups of people such as aboriginals.
Business Loans: The long-time option for financing both start-ups and established businesses is the Canada Small Business Loans Financing Program. However there are also other options such government sponsored and non-profit agencies that provide loans as well as private loan sources.
Small Business Taxes: Business owners can get back the amount of GST that they pay on goods and services consumed during the course of doing business. Small businesses do not have to register to charge and remit GST if they qualify as a Small Supplier making less than $30,000 per year. Even if you make less than $30,000 per year you may want to register your business because otherwise you will not be able to claim back any GST you have paid out on business purchases through Input Tax Credits.
Income Tax Deductions: Deductions such as Investment Tax Credits are open to sole proprietors and partnerships. In addition, home based business owners can claim The Business-Use-Of-Home-Deduction and legitimate business expenses and write these off against their business income.
From an article by Susan Ward
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