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Frequently Asked Questions

When starting a business, people tend to have a lot of questions. Below are a few commonly asked questions on business start up.

• I have a really great idea for my own business but don't know where to begin.  What do I do now?
• Are there any grants available to start a small business?
• Do I have to register my business name ?  Why?
• What is a Business Name Search? 
• How do I register my business name?
• Are there other registrations required or regulations to consider?
• What is a business plan? Do I need one?
• Where can I get financing for my business?
• I understand there are different forms of businesses organization in Canada.  What are they and how do I know which one my business should be?

"I have a really great idea for my own business but don't know where to begin. What do I do now?"

The first step is to develop a comprehensive business plan, to determine if your business is feasible or not. For more information about business plans, see Business Plans.

Your business plan will include market research. Demographic information on Muskoka can be found by following this link: Demographic Information

A business plan will be needed when you approach any organization for funding. Please follow this link for Sources of Financing.

You will need to decide on your business structure. Further information on the form of business organization, can be found by following this link: Forms of Business Organization

You will want to name your business. Choosing the right name for your business is an important decision. You want a name that will draw potential customers, help clients identify your company and build your business image.  For some of the points to consider when naming your business, follow this link: Naming your Business.
  

Any business operating in Ontario that has a name other than the owner's exact name must be registered with the province. Further information can be found by following this link:

Provincial: Business Name Search and Registration

After provincially registering your business name, there may be other registrations required, depending on your business. The Muskoka Small Business Centre can help with the registrations.

These include, but are not limited to the following:

• Provincial registrations:

  Provincial/Retail Sales Tax (PST/RST)

  Workplace Safety and Insurance Board (WSIB)

  Employer Health Tax (EHT)

  Many businesses including retail and service outlets, restaurants and lounges, manufacturing, and processing operations, may also need special provincial licenses. These include food, drugs, alcoholic beverages, wood products, optical lenses, motor vehicle operations, railroad and water transportation, pressure vessels and pressure regulators, and upholstered and stuffed articles.

• Federal registrations:

  Federal Business Number (BN):

  Goods & Services Tax (GST)

  Payroll Deductions

  Import/Export

  Corporate Income Tax

  Consumer Products/Labelling:

  Food

  Non-Food Items

  Cosmetics, Toys, Children's Clothing

  Textiles: clothing, carpets, upholstered and stuffed articles

Also, there may be Municipal, Provincial or Federal regulations to consider. Further information can be found at: Regulations, Registrations & Contacts.

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"Are there any grants available to start a small business"

For most business start-ups there are no grants available. Most of the existing programs are targeted strictly to specific industries, geographical areas or particular groups of entrepreneurs (minority groups, young entrepreneurs, employment insurance recipients, etc.). The Canada Ontario Business Service Centre's website will give a list of available grants, if you type in "grants" in their search engine. More information on government grants can be found at Industry Canada's Strategis website, under the Business Support and Financing section. See also our Financing page for other sources.

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"Do I have to register my business name? Why?"

The Business Names Act requires any business operating in Ontario with a name other than the owner’s exact name to be registered with the Province. Corporations must register all names they use to carry on business if these are not the same as the corporate name.

A Master Business Licence will be issued upon registration of your business name. Proof of business name registration is required by financial institutions in order to open a business bank account.

A unique name will help identify your business to customers; however unincorporated business names are not protected.  Registration places your business name on the public record maintained by the Ontario Ministry of Government Services, allowing consumers and business people to find the owners or principals behind a business name. Registering a business name does not give you exclusive use of the name. The Business Names Act does not prohibit registration of identical names, but if you decide to use the same name, or if you use a name that is confusingly similar to that of an existing business, it could result in a lawsuit.

The person registering the name assumes full responsibility for any risk of confusion with an existing corporation, business name, or trademark. You can get protection for your business name through a trademark.

For further information, please follow this link Registering a Business Name, or contact Ontario Business Connects: (416) 314-9151, 1(800) 565-1921, OBC website

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"What is a Business Name Search?

Before making a final decision on a business name, it is a good idea to check whether the name you have in mind is already in use. The most complete searches are done, for a fee, by private search houses. You can conduct your own business name searches, however it is important to make your search as complete as possible, including businesses registered in Ontario and other provinces, as well as incorporations and trade-marks.

One of the searches would be to search the records of the Companies and Personal Property Security Branch of the Ontario Ministry of Government Services. This searches business names registered with the Province of Ontario. In Muskoka, there are several places where this search can be conducted. The cost is $ 8. Method of payment varies. Please follow this link for the searches: Name Searches in Muskoka

Please note: if a business incorporates using the business operating name, (as opposed to a number) the corporation is not obligated to also register that business name with the Companies and Personal Property Security Branch of the Ontario Ministry of Government Services.

Incorporated business names are protected. You may be sued if you use a name that is the same as the legal name of an incorporated business or its registered trademark. Incorporated businesses are registered with the Canada-wide corporate and business name registry called the Newly Upgraded Automated Name Search (NUANS). A NUANS search report will display corporations, business names and trademarks which are similar to the name you have searched. For more information, please follow this link: (NUANS).

You can check business names registered in other provinces through the business registration authority of the other provinces.

For more information, follow this link, Naming your Business or visit the Ministry of Government Services website.

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How do I register my business name?"

Any business operating in Ontario that has a name other than the owner's exact name must be registered with the Province.

In Muskoka, if your business is a sole proprietorship, a partnership or existing corporation, you have several choices to register your business name with the Province of Ontario. The cost and method of payment varies. Please follow this link for the choices: Business Name Registration in Muskoka.

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Are there other registrations required or regulations to consider?"

Registrations and regulations required depend on the business. Below is a brief list. For further information and contacts, please follow this link: Regulations, Registrations & Contacts.

Municipal

Check with the municipality in which your business willl be located. There may be municipal licensing required including, but not limited to, fire and health regulations, zoning, municipal licencing, signage, and parking.

Provincial Registrations:

Retail Sales Tax/Vendor's Permit (PST/RST)

You must apply for a vendor’s permit if the products or services you are selling are subject to PST, also known as RST. If you are uncertain whether or not you must charge the PST, call the Ministry of Finance, North Bay, (705) 474-4900 or 1(800) 461-1564, or visit Small Business Tax Help

When you register your business name provincially, the application for a vendor’s permit is processed at the same time. The Muskoka Small Business Centre can help you with PST registration.

Employment Regulations:

When you are ready to hire employees, then there are several Provincial regulations to consider:

Employment Standards Act

The Employment Standards Branch of the Ontario Ministry of Labour (MOL), is responsible for the administration and enforcement of the Employment Standards Act. This Act provides for the minimu terms and conditions of employment, such as minimum wage, statutory holidays, hours of work. Ministry of Labour: 1-800-531-5551 Website: Employment Standards

Worker’s Safety & Insurance Board (WSIB)

If you are hiring employees or contractors, you are responsible for payments to the WSIB. In accordance with the Act, employers must notify the WSIB within 10 days of hiring someone. WSIB will send you an application form and notify you of the payments.

When you register your business name provincially, this application is automatically sent. For more information, visit http://www.wsib.on.ca. The Muskoka Small Business Centre can help you with WSIB registration.

To better understand your obligations under the Workplace Safety and Insurance Act, contact the Office of the Employer Advisor (OEA), 1(800) 387-0774 www.employeradviser.ca. The OEA is an independent agency of the Ontario Ministry of Labour and has been helping Ontario employers manage their workplace safety and insurance costs, since 1985. It provides expert advice to any size employer; including mediation, negotiation, and representation throughout the workplace safety and insurance system to employers who primarily employ fewer than 100 employees. The service is completely confidential and free.

Occupational Health & Safety

The Occupational Health and Safety Act sets out the rights and duties of all parties in the workplace. Its main purpose is to protect workers against health and safety hazards on the job. The Act establishes procedures for dealing with workplace hazards, and it provides for enforcement of the law where compliance has not been achieved voluntarily. For more information, visit Health and Safety

Employer Health Tax

Employers who have a permanent establishment in Ontario pay employer Health Tax (EHT). For the first $400,000 of the payroll, eligible employers are exempt from paying the Employer Health Tax. For further information, visit EHT

For further information, visit Employment Regulations Info-Guide

You must also register federally, to submit payroll deductions.

Other

Many businesses including retail and service outlets, restaurants and lounges, manufacturing, and processing operations, may be subject to licenses to protect the interests and safety of the public regarding the use, application, or sale of certain items or services. These include: food, drugs, alcoholic beverages, wood products, optical lenses, motor vehicle operations, railroad and water transportation, pressure vessels and pressure regulators, and upholstered and stuffed articles.

There are 19 regulatory acts administered by the Business Practices Division of the Ministry of Consumer and Business Services relevant to businesses that sell products or services to the public. These Acts promote fair business practices and a high level of ethical conduct in the marketplace, and serve to protect the rights and needs of the individual consumer. The Business Practices Act is of particular concern to most businesses. For further information, go to: Regulated Business Practices / Consumer Complaints

Federal Registrations

Federal Business Number (BN):

The BN is a numbering system that simplifies and streamlines the way businesses eal wih the federal government. It is based on the idea of one business, one number. The BN includes the four major Canada Revenue Agency (CRA) business accounts:

1. Goods & Services Tax (GST)

If your businesses’ gross earnings are expected to be over $30,000/year, you must apply for a GST number. Businesses grossing under this amount can voluntarily register for a GST number.

2. Payroll Deductions

Employers must register with the federal government, and make deductions for Income Tax, Employment Insurance (EI) and Canada Pension Plan (CPP) from your employess and remit the deductions and the employer's portion to the Canada Revenue Agency. For further information, visit Employment Regulations Info-Guide

 

3. Import/Export

If your business will be importing commercial shipments from a foreign country, or exporting commercial goods to other countries, your should register for an import/export account. Here are some links to further information:

Importing:    

Importing Info-Guide

Exporting:   

Ontario Exports Inc. is Ontario's export development agency helping the province's new and experienced exporters expand their export sales, compete in world markets, and assist foreign buyers in finding Ontario suppliers for their purchasing requirements

Exporting - Preparing for World Markets Info-Guide
Exporting - Entering World Markets Info-Guide

Exporting to the United States Info-Guide
Team Canada Inc Functioning as a virtual network, it provides the export community with a single point of access to the broad range of government export service providers.

4. Corporate Income Tax

If your business is federally or provincially incorporated, or if you are a non-resident corporation operating in Canada, you must file a corporate income tax return. In most cases, new corporations will automatically receive a BN from the CRA within 45 days of incorporating at the federal or provincial level.

Registration for the federal BN can be performed on-line at: www.businessregistration.gc.ca, by phone, 1-800-959-5525, or through the Muskoka Small Business Centre.

Consumer Products/Labelling

Most products sold to consumers in Canada have some type of labelling requirements associated with the product's use, warnings and claims. These labelling requirements apply to anyone who manufactures, sells, buys and/or imports products for public use or consumption. Labelling Fact Sheet

Food: The Canadian Food Inspection Agency is responsible for food safety, and administers the federal labelling requirements for pre-packaged foods under the Food and Drugs Act and the Consumer Packaging and Labelling Act. Further information, visit Food Labelling

Non-Food Items: Industry Canada administers the packaging and labelling of non-food items, through the Consumer Packaging and Labelling Act.

Cosmetics, Toys and Children's Clothing are regulated by Health Canada, through the Hazardous Products Act, and the Product Safety Programme.

Textiles: Most consumer textile articles offered for sale in Canada, including clothing, carpets, upholstered articles etc., must bear a label with informaton on fibre content and dealer identity. For further information, see: Labelling Textiles. The Technical Standards and Safety Act regulates items such as stuffed articles such as furniture, bedding products, clothing materials, toys, sports equipment and miscellaneous articles. The filling materials used are inspected for compliance with safety regulations and tested for quality and cleanliness. Further information can be found at www.tssa.org

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 "What is a business plan? Do I need one?"

A Business Plan is a statement in words and numbers that explains what you want to do and how you will accomplish your objectives. It is a written report of the company's finances, management, employees, products, and marketing strategy. The Business Plan is an essential planning and tracking tool for both new and existing businesses. A Business Plan may be required to obtain the financing you need and is also an important step for improving your chance of success. Futher information, please follow this link: Business Plans.

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"Where can I get financing for my business?"

In the early stages, the most important financial sources will probably be yourself, friends, relatives and financial institutions. All financing programs require a Business Plan. Please follow this link for Sources of Financing.

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"I understand there are different forms of businesses organization. What are they and how do I know which one my business should be?"

From a legal point of view, there are four ways to form a business:

1. Sole proprietorship
2. Partnership
3. Corporation
4. Co-operative

Please follow this link for a brief description of each type and a summary of their advantages and disadvantages. Forms of Business Organization.

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