Do you remember this article I did in February on the stages of starting a business ?

Although the information was quite clear in itself, you may still have questions regarding your business registrations!

As you probably know, I sell popular documents that explain step by step how to register your business. For example, to obtain your NEQ, your BN , your CA number or to register for the GST and QST tax files.

So when I made my list, I took into account that you already knew the types of registrations and that you knew how to register for the NEQ ( for example ) if you only took into account the list of steps and you did not buy my document which explained to you how to do it, where to do it and which type to choose. BBBBBZZZZAAANNN! My mistake !

So I decided to write this little article to explain a few things that can GREATLY help you untangle yourself! Of course, after that, you can always buy my documents or join the apprentice entrepreneurs if you want us to set up your business together, but for the moment, I owe you a few explanations.

WARNING !
I'm giving you a "melting pot" of information here, so there may be a little missing, but summarily, I think you'll have a better idea of ​​what suits you!

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Do a market study

So, in the To do list we find a line where it is written " Do market research or have it done! ". Honestly , if you haven't done a course in it or training to learn how to do it, you can still do it yourself, but it might just be a really-more-better-idea to make it happen ! Market research is a crucial step in starting your business. Because it is in the market research that you will determine who is and what the lifestyle and consumption habits of your Persona look like.

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Register in the QUEBEC enterprise register

In the To do list , we find a bit further the line " Register in the register of enterprises of Quebec , if necessary". IF NECESSARY, that is the mention that gets you involved. That's what I figured out over time!

It is in fact not NECESSARY, but MANDATORY that you register with the Quebec enterprise register if you do not use your NAME AND YOUR FIRST NAME, in full, without modification of letter or punctuation.

For example :

• Stéphanie Therrien Creations = Not mandatory
• Stéphanie's Creations = Mandatory
• Stéph Therrien Creations = Mandatory
• ST Creations = Mandatory
• Stéphanie Therrien, Tailoring = Not mandatory
• The little pets creations = Mandatory

Do I continue?

In reality, the NEQ has nothing to do with whether or not you make $30,000 a year or whether you make very little or no money from your business. No, it has no connection at all.
And that, we'll talk about that later!

What I'm telling you here is that if you don't use your FULL NAME AND FIRST NAME in your business name, you have a legal duty to register your business with the Quebec Business Register.

* Attention, here, we are talking about the NEQ which is for Quebec only.

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Register with the CANADIAN Business Registry

Now we come to the line " Register for the Canadian Business Registry , if necessary". Yes, another " if necessary ".

In fact, it is necessary to have a BN if you ever want to communicate with other provinces in the territory of Canada. For example, if you want to obtain a business number for Ontario. Your BN will also be automatically assigned to you if you request your tax numbers.

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Application for obtaining a CA number

In our famous To do list, we will now find the point "Apply for a CA number , if necessary". By the way, I don't know why I wrote so many " if necessary ". I should have already, you indicate the necessities, but at the same time, I wanted to offer you a concise list!

Therefore, the CA number is optional when manufacturing, designing and/or selling ( but not limited to ) fabrics. I say optional, because you are not required to have a CA number.

However, you have the obligation to put either your CA number on your identification labels for your creations OR to enter the information that replaces the CA number, i.e. your surname and first name and your postal address of practice (yes, you have to, even if your workshop is at your house.)

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Register for tax files

Next we have the point " Register for tax files , if necessary or desired". In this case, I put a small "if desired" Yihou!

Let's start with the "if necessary".

In fact, I wrote necessary , but I should have written " if mandatory " because yes, you may be required to register for GST and QST (both are done at the same time.)

In fact, sometimes you don't need and want it, and other times you just have a government obligation to have it.

From personal experience; I had to register because it was a shop where I had items on consignment that required it in its contract. So, I was not obliged, but to be able to sell in this shop, I had the contractual duty to have some.

So taxes actually depend on two things: your type of business and your business income.

Here, we will focus on the second - your business income:

You must therefore register if :
- Your income exceeds $30,000 per calendar quarter
- AND in the last 4 quarters

Example (Canada Revenue Agency)

1ST TRIMESTER	$7,000
2ND QUARTER	$5,000
3RD QUARTER	$7,000
4TH QUARTER	$10,000
TOTAL	$29,000

Since the $30,000 regulatory for four calendar quarters is not reached, you are still considered a " small supplier " by the government. On the other hand, I STRONGLY advise you to continue to do the calculation each quarter to ensure that you do not exceed the $30,000 if you do not wish to submit the request to charge the taxes. 

As soon as you exceed $30,000, you will then be required to register.

Don't wait to get too close from 30 $000, because the first dollar after the 30 $000 must be taxed and I'm not making you guess who will pay for the extra dollars if you ever exceed without realizing it.

Oh yes, I tell you: It's you!

Finally, the " if desired ". As I explained to you, you may want to have your taxes as soon as you open your business because you already expect to make a turnover of more than $30,000. 

You can therefore register for the tax file and suddenly, the advantage you will derive from it is that when you make purchases for your business, since you are making your customers pay the tax, the taxes that you have paid will be refunded to you . For example, at the start of a business, we often have more expenses than business income, so it can be advantageous to be reimbursed for the taxes paid!

I also want to tell you that, if ever you are, for example, a massage therapist and you do not declare the taxes and that at the same time, you have a company which manufactures massage oil and you sell it. Even if the two companies are not legally linked, you have the legal obligation to charge the tax for BOTH COMPANIES, when one of the two reaches the regulatory $30,000.

I know that all these processes and obligations can be quite confusing and that is why I launched the support for apprentice entrepreneurs . These are all steps that we will do together and that I will help you choose so that you do not make mistakes from the first steps of your business. 

It is also possible that you have already started your business and that you still need support... In this case, write to me and everything you have already accomplished in your business will be deducted from the price of the support.

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Source: https://www.canada.ca/en/revenue-agency/services/tax/businesses/subjects/gst-hst-businesses/when-register-invoice.html

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Last Update: 04/30/2022