Starting a Business in Canada

The way you structure and own your business affects your responsibilities and tax rules. There are three main types:

• Sole proprietorship
• Partnership
• Corporation

Each business structure has pros and cons including ease of set up, tax implications, and maintenance costs. Before deciding on a structure for your business, consult a lawyer or professional to determine the best one for your needs.

Intellectual property (IP) refers to intangible assets like patents, inventions, brands, designs, processes, technologies or software, to name a few.

Protecting your IP rights may be important because it can give your business a competitive edge, especially in a crowded marketplace.

Professionals can help you navigate IP and the Government of Canada offers helpful information on learning to identify your IP assets as well as instructions on how to protect them, including patent registrations.

The Canada Revenue Agency (CRA) requires certain businesses to register with them for a business number (BN).

Visit the CRA website to find the information you need, apply for a business number, or register your business.

Take some time to learn about how to collect, report, and remit taxes.

You will likely need to register for your goods and services tax (GST) and harmonized sales tax (HST) number from the Canada Revenue Agency. This may also be required if you're setting up a corporation, in order to register employee payroll deductions, make job offers, and set up employee deductions.

Visit Making Payments for more information on paying employees and taxes.