Have you ever wanted to run your own business?

Being your own boss gives you the creative freedom to set your own hours, pursue whatever business you are passionate about, wherever, and however you want. It sounds great, huh?

With the pandemic this year, many businesses have gone bankrupt because they were not able to adapt to the market situation, financial demands, and necessary adaptability that a successful business needs in this climate. While this is unfortunate for previous business owners, this presents an opportunity for new businesses born with this adaption in mind.

Companies making masks, restaurants opening with social distancing and take out in mind, and cleaning services are all doing great business right now, and so can you!

Let’s say you come up with a great idea for a business that’s in demand and will be for the foreseeable future. How do you go about starting up your business? Here is a list, in no particular order, of some of the things you need to do when creating your business:

1. Decide on the nature of your business and who you want as your clientele. This is essential for creating a business plan.
2. Pick a name that reflects your company creatively in compliance with the regulations. If you don’t want a name, your corporation will need a number.
3. Pick a main office/ place of business
4. Consider what institution you want to do banking with your business. You should keep in mind your small business needs, your plans for the future of your business, and how the institution can support your goals.
5. Decide on your business structure
   1. Sole proprietorship- One person owns the business, information and monetary gains and losses are directly linked to them
   2. Partnership- Two or more people own the business, information and monetary gains and losses are split equally between them unless otherwise discussed and formally addressed in writing.
   3. Corporation- A legal entity that is separate from its owners, called shareholders. The shareholders do not necessarily operate the business.

The business structure you choose with decide the frequency with which you renew certain documents and what documents you need to file.

Depending on the structure you choose, you will have to:

1. Name your director(s)
2. Decide on your shareholders
3. Incorporating on a federal or provincial level
4. Get CRA accounts and authorization

These are some of the most important things you should be thinking about when starting your own business. Having these items figured out will have you one step closer to having your dream business up and running!

After these initial steps, you might want to think about other things your business will need such as bookkeeping, payroll, and filing corporate tax returns. We know this can seem overwhelming, especially when running your own business. That is why the professionals at Hummingbird Financial will make these requirements a breeze. We offer a wide variety of financial services to help your small businesses prosper and keep you stress free!

Contact us today for your free consultation!