Does the government provide any grants to help me start my business?
Generally, there are no government grants to provide start-up business funding, although the government does provide loans and hiring subsidies. Click here for a complete listing of these programs.
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Where can I get a loan for my business?
In the early stages, the most important financial sources will probably be yourself, friends, relatives and financial institutions. The most common source of financing for small businesses is the chartered bank. Banks can provide a number of financing options, such as short-term loans, long-term mortgage loans and, in some cases, loans against inventory or accounts receivable. Other important sources of financing in this category include trust companies and credit unions. For very small firms and home-based businesses, credit cards and lines of credit often provide a ready means of obtaining small scale debt capital. While convenient, they bear relatively high rates of interest and limit the amount of capital available. Each situation is different, and it is critical that a good business plan be developed to determine the overall needs of the business.
Click here for more financing information.
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Where can I register my business name, and what is the cost?
You can register your business name via the Internet at the Ontario Business Connects (OBC) Web site during business hours (8:30 am to 5:00 pm, Monday to Friday). The fee for registration is $60. Once you have completed your on-line business name registration you will immediately receive a Master Business License in Adobe Acrobat format. Name search is available for on-line registrations.
You can also register your business name in person. The cost is $60 for registration and $8 for name search. Business name searches and registrations at OBC workstations are processed immediately. In Windsor, there are 2 workstations located at:
Ministry of Finance, Employer Health Tax Branch
215 Eugenie Street West, Windsor
Tel: 519-250-0066 or 1-800-465-4021
Service Ontario
400 City Hall Square, Suite 103, Windsor
Tel: 519-973-7954
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Why do I have to register my business name?
Registration places your business name in the public record maintained by the Companies Branch of the Ministry of Consumer and Commercial Relations. This allows consumers and business people to find the owners behind a business name. This sort of information is important to people trying to settle disputes.
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Do I own my business name after registering it?
Registering a business name does not give you exclusive use of a name. The only legal protection you can use to "own" your business name is to become a corporation (and register your corporate name) or if you register a trademark.
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What is a business plan?
A business plan, basically:
- Gives you a path to follow while planning your business. It is a plan with goals and steps which will allow you to guide your business through the next year.
- A plan shows your banker that all the research has been done and that you are ready to proceed. This information will help your business be more favourably considered for a loan.
- A plan can help you be ready to start your business. It can give you practical information about competitive conditions, promotional opportunities and your day-to-day sales and expense estimates.
A sound plan tells you what to do, how to do it, and how to achieve the goals you have set for your business.
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What are the main components in a business plan?
A typical business plan has seven components:
The plan begins with an Executive Summary. The purpose of this section is to attract interest, outline the basics of your plan and encourage the reader to read on. The topics covered usually include a complete description of your business, the summarized financial requirements and sources of funding, and the major uses to which you plan to apply the money.
The Company Profile is next. This section outlines who you are and what you do. It also includes a listing of your business registrations and licenses, company management and advisors.
The next section, the Industry Profile, considers whether there's a market for your product or service. It discusses the size of the market and what share you can expect to capture.
The Sales and Marketing Plan covers sale projections and how these will be reached. It describes how you will tell potential customers about your services and/or products, how you will deliver what you are selling, and how you will successfully compete.
Next is the Operating Plan . This section outlines your facility, its costs and your equipment and suppliers/inventory needs.
The Human Resources Plan deals with the people needed to make your product or deliver your services. Not only does it outline the job titles, but also the roles and responsibilities associated with each job.
Finally, all of the above needs to merge into a Financial Plan . With all of your plans there are costs associated with every action. Your financial section should include a cash flow forecast, a projected income statement and a projected balance sheet.
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Where can I get a sample business plan?
There are business plan examples in many places:
- The Interactive Business Planner can assist you in preparing your business plan on the internet.
- In the Small Business Enterprise Centre we have hundreds of examples. Use our library to find an example that is similar to your business idea.
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What's the difference between a Business Name Registration, Master Business License, Business Identification Number (B.I.N.), and Business Number (B.N.)?
A Business Name Registration refers to a registration under the Business Names Act. It is a registry of business names of sole proprietorships, partnerships, and corporations maintained by the Companies Branch of the Ontario MCCR. They sometimes refer to this registration as the Master Business License. A B.I.N. is the number assigned by Companies Branch to your Business Name Registration. It is found in the bottom right corner of your Business Name Registration. A B.N. is a federal numbering system that replaces the multiple numbers businesses required to deal with the federal government. This number is issued to you by Canada Customs and Revenue Agency.
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Do I need a license for my business?
The word license can refer to a registration, notification to an agency, compliance of legislation or the purchase of a special license. There is no one license that every business absolutely needs, it is different for every business. Confusing as this sounds, we have simplified this process by creating a step-by-step checklist of the regulations and licenses for new businesses to review. Click here.
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Is it mandatory to register for GST?
If your taxable sales are $30,000 or more you are not exempt from GST/HST and must register. If your sales are less than $30,000, you have the option of registering. Registering is generally a good idea since you can then claim input tax credits in respect of your expenses.
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What expenses can I deduct if I have a home-based business?
Canada Customs and Revenue Agency publishes an excellent guide every year called the Business and Professional Income Guide which can answer this question and all your income tax questions. According to the 2005 edition of this guide, you can deduct expenses for the business use of work space in your home, as long as you meet one of these conditions:
- It is your principal place of business; or
- You use the space only to earn your business income, and use it on a regular and ongoing basis to meet your clients, customer or patients.
You can also deduct a portion of your maintenance costs, such as heating, home insurance, electricity and cleaning material. You can also deduct a portion of your property taxes, mortgage interest, and capital cost allowance. To calculate the portion you can deduct, use a reasonable basis, such as the area of the work space divided by the total area.
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What are the benefits of incorporating?
A corporation is a legal entity that is separate from its owners (the shareholders). No shareholder of a corporation is personally liable for the debts, obligations or acts of the corporation. However directors, officers and insiders can bear some liability for their involvement with the corporation. A corporation can be formed at either the federal or provincial level. The main advantages are:
- Limited liability
- Specialized management
- Ownership is transferable
- Continuous existence
- Separate legal entity
- Possible tax advantage
- Easier to raise capital
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What is the difference between provincial and federal incorporation?
The main distinctions are as follows:
- Provincial Incorporation means your are a distinct legal entity in Ontario only and that corporate protection (including your corporation's name) is only valid in Ontario.
- Federal Incorporation means you are a distinct legal entity throughout Canada. It means you have the right to operate operate your business anywhere in Canada.
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