Just Registered Your Business? The Next Steps You Can’t Miss

1. Obtain Your Business Number

The first thing you need to do after registering your business in Canada is to obtain a Business Number (BN). The BN is a unique 9-digit identifier that the Canada Revenue Agency (CRA) assigns to your business. This number is essential for dealing with the CRA on matters like tax filings, payroll, and other government-related interactions. It’s your key to unlocking a variety of federal, provincial, and municipal services.

Without a BN, you can’t register for essential programs like GST/HST, payroll, or corporate income tax. Make this a priority to ensure you’re legally compliant from the get-go.

2. Register for HST/GST

Depending on where you operate, you may need to register for the Goods and Services Tax (GST) or the Harmonized Sales Tax (HST). This is crucial if your business’s revenue is expected to exceed $30,000 annually. Even if you’re starting small, it’s wise to register early to avoid penalties and ensure compliance with Canadian tax laws.

Registering for GST/HST allows you to charge tax on your sales and claim input tax credits on your business purchases. This can be a significant benefit as your business grows. Failure to register on time can result in missed opportunities and potential fines, so it’s better to be proactive.

3. Open a Business Bank Account

A dedicated business bank account is more than just a convenience; it’s a necessity. Separating your business finances from your personal accounts helps maintain clear records, simplifies bookkeeping, and provides a professional image to clients and suppliers.

When it comes to tax season, having a separate account will make it easier to track income, claim deductions, and avoid potential CRA audits. It also simplifies the process of getting business loans or credit down the line, as lenders will want to see clear financial records.

4. Secure permits and insurance

ensure your business is legally protected by obtaining the necessary permits and insurance. depending on your industry, you’ll need specific licenses to operate and insurance coverage to safeguard against potential risks. this step is crucial to avoid fines and protect your assets.

5. Set up an accounting system

Organize your finances from the start by setting up an efficient accounting system. tracking receipts and expenses is vital for accurate bookkeeping, tax filing, and maintaining a clear financial overview. whether using software or hiring a professional, keeping your records in order is key to business success.

6. Prepare for annual return filing