Small Business
Thinking of starting your own business?

Here are some things you need to know:

We can help!

Our lawyers have years of experience both operating and advising small businesses. We can help with simple things like helping you choose a proper business name, advising re: insurance needs, helping you in establishing relations with bankers and accountants, and generally ensuring that you are properly protected from a legal standpoint.

Don't be caught by surprise – come and see us for a free ½ hour consultation to find out what you should be doing as you start your new business.

You must choose a business entity.

The most common form of business entity in Ontario is sole proprietorship, or a business which is owned an operated by one individual. Other forms are partnerships, limited partnerships, and corporations.

Each form of business has its own advantages. Proprietorships are the simplest form, and usually do not require the filing of separate income tax forms. However, for many people, partnerships are the answer. If you choose to form a partnership, it is critical that you enter into a partnership agreement that deals with such things as who owns what, how a partner could leave the business, and how money would be spent.

You must choose the right business name!

You have the right to choose the name you want for your business – up to a point. If you choose a name that is the same or similar to an existing business name, trade mark or trade name, you could end up in a lawsuit. It is wise, therefore, to conduct a business name search of existing names before your register. Our firm can assist you with this search.

You must register your business name.

If you carry on your business in Ontario in a name other than your own name, you must by virtue of the Business Names Act, register the name. If you fail to register, you will pay the price! Your business may be unable to open a bank account or to obtain a Business Number from Revenue Canada. You may also be unable to maintain a court action, which could prevent you, for example, from suing a customer for a delinquent account.

How do I register my business?

You must complete the registration on a government form. The forms are available from our office, and we can also assist you in completing them properly. You may also obtain them from the Ministry of Consumer & Commercial Relations office at the Ottawa Court House, 4th Floor, 160 Elgin Street, Ottawa, or by calling toll-free: 1-800-268-1142.

Complete the form as instructed and send it to the address on the form along with a certified cheque or money order payable to the Minister of Finance for $55. You will need a copy of the registration for your bank account. To get this copy, send a self-addressed envelope and a request for a copy.

Your business name can expire!

Many small businesses fail to realize that their name registration will only be valid for five years. Protect yourself: after you receive your copy of the registration, make a note on a five-year calendar of the time for renewal.

Sales Taxes

Almost all businesses must be registered for collection of Ontario retail sales taxes. Many others must register for the collection of the federal Goods & Services Tax, which also allows one to claim input tax credits on goods purchased for the operation of the business. We can help you register for both, or you can call Revenue Canada at: 1-800-265-0017.

If You Have Employees

Most businesses must pay the Employer Health Tax that came into effect on January 1, 1990, to replace OHIP premiums. For information on how to register call 1-800-263-7965.

Employer businesses must obtain a Business Number from Revenue Canada to cover employee payroll deductions. You can obtain this number and the appropriate information by calling 1-800-387-0810.

You may also be in a business that must pay workers' compensation. You can enroll your business in this plan by calling 1-800-387-5540.

Ontario now has a comprehensive set of workplace safety laws that a small business must follow. For assistance in this area you can phone: 1-800-461-4383. If you need legal help, our firm can guide you through this legislation.

Municipal Licenses / Zoning

Most municipalities require you to obtain a license in order to operate a business. Make a phone call to the municipal office of the municipality in which you intend to carry on business and ask if you need a license.

Municipal zoning by-laws may also restrict the location of commercial and industrial activities to certain specific locations. Make sure the type of business you intend to carry on is a permitted use in the location you have chosen.