Business Start-Up Checklist

Our Business Start-Up Checklist is designed to serve as a guide for those thinking of starting a business as well as those who have already made the decision but aren't sure where to begin. 

TABLE OF CONTENTS

• Start-up Checklist 
• Self-Assessment - Am I an Entrepreneur?
• What is a Business Plan? Why Do I Need One?
• Business Structure
• Registering Your Business Name
• The Business Number
• Business Licenses
• Financing
• Taxation
• Marketing
• Bookkeeping
• Insurance
• Bonding Insurance
• Hiring Employees 
• Other Services 
   

Start-Up Checklist

One of the most common questions when starting a business is "Where do I begin?"  The checklist below will help answer that question and serve as a guide for the steps you need to take.

• To find out if your business idea is right for you, ask yourself is this something you're good at? Is this something you enjoy doing? 
• Are you an entrepreneur? Try an entrepreneurial self-assessment quiz such as "Am I an Entrepreneur?" located online at http://www.bdc.ca/EN/advice_centre/tools/ entrepreneurial_self_assessment/Pages/entrepreneurial_self_assessment.aspx  
• Should you start a new business, purchase an existing business or acquire a franchise?
• Prepare a business plan. You can do all your preliminary research in the Canada/Manitoba Business Service Centre reference library.
• Choose the form of business organization most appropriate for your needs (sole proprietorship, partnership, corporation or cooperative) and register the business name.
• Ask for advice from other business owners as well as professionals such as your banker, accountant, or lawyer.
• Contact the City of Winnipeg or your local municipal government office concerning zoning requirements as well as any licenses or permits that are required for your type of business.
• Contact Canada Revenue Agency in order to register for collecting GST/HST, remitting employee deductions (EI, CPP and Income Tax), and import/export taxes (if applicable) and for information on business expenses that you can claim on your tax return.
• Decide if you will offer credit to your clients. If so, set up an appropriate credit policy.
• Open a business account under your company’s name with your bank or credit union. 
• Negotiate contracts with suppliers.
• Negotiate lease agreements for premises and/or equipment.
• Set up a bookkeeping system to monitor receivables and accounts payable.
• Develop an inventory control system.
• Establish credit terms with key suppliers (payment terms, credit limits, discounts and finance charges).
• If you need to register a Trade-mark, Copyright, Industrial Design or a Patent, contact the Canada/Manitoba Business Service Centre.
• If you are hiring employees, contact the Employment Standards Branch, Manitoba Department of Labour and Immigration, the Workers Compensation Board and Canada Revenue Agency.
• Arrange for business insurance.

Self-Assessment - Am I an Entrepreneur?

Deciding to go into business for yourself is one of the most important decisions you’ll ever make. Are you ready for it?

Rewards  There are many - the freedom to be your own boss, the personal satisfaction of a job well done, and the chance to earn an income that is only limited by your determination. Your business can be full-time or part-time.

Pitfalls   Going into business takes a level of effort and energy that many people underestimate. It can place incredible demands on your time, your family relationships and your finances. Many new businesses fail within the first three years. It’s rare for any new business to provide any significant financial return to the owner in the early years.

Improve the Odds  First, take an honest look at yourself. Are you ambitious, confident, energetic, persistent, creative, a risk-taker, a problem-solver, a planner? Successful small business owners often have many of these traits. Secondly, the ability to manage your time and resources is a key element of business success.

Considerations  Do you love what you’re doing?  Are you knowledgeable about the business you're going into? Do you have training in management, marketing, finance and production? If not, are you willing to take training courses in your weak areas?

Options  Can you bring someone else into the business who has the skills you lack?  Or have you considered a franchise, where someone else has already established the business model and can provide guidance, support and the recipe for business success? If you’ve decided to go into business with one or more partners, are you confident the relationship is strong enough to weather the storms ahead? 

Moral Support  Do you have the full support of your family?  They are probably the most important assets you will rely on as your plans progress. Your prospects for success can only improve when those close to you share your commitment, if through nothing else but their moral support and encouragement.

Do you have enough money?  Going into business is almost always more costly than you think.  You may find it a lot harder to raise capital for your business than you’ve experienced in the past for your personal needs.  Be thorough and realistic about how much you need right from the start so your business isn’t jeopardized after you’ve invested months of hard work.

What is a business plan? Why do I need one?

Most business experts will say that the most critical aspect of setting up a business is planning.  Unfortunately, this step often gets little or no attention, leading to the failure of the business and the loss of your investment or personal assets. This is why planning is so important.

A business plan:

• outlines your business idea and helps to focus your thoughts
• commits your plans to writing so you can refer back to them 
• is necessary to obtain financing
• helps you pinpoint your competition
• details your current financial position and estimates future profits and expenditures
• identifies opportunities
• uncovers potential weaknesses
• tests your commitment to the business
• helps you anticipate and adapt to change
• provides a method to evaluate your results

Where can you find more information about a business plan?

If you are looking for business plan templates or outlines, or undertaking preliminary research for suppliers, manufacturers, competitors, industry trends, licensing requirements, sector profiles, advertising rates or market information, the Canada/Manitoba Business Service Centre library has a wide range of resources to help you. 

Our Business Consultants are available by appointment only to review your business plan once it is complete. Our Consultants can then offer you suggestions on how to improve your business plan prior to going to a financial institution for a loan. For an appointment call 204-984-2272 or 1-800-665-2019.

Business Structure

One of the most common questions facing all new business owners is "What business structure is best for me?"  The four main types recognized in Canada are sole proprietorship, partnership, corporation and  cooperative. Each form has it's advantages and disadvantages.

People new to business may think that the structure is not important. However, consider that:

• investors or partners may only be interested in certain structures
• banks and funding organizations may be more willing to lend to certain business structures than others
• the appropriate form for your business depends on many factors, including the type of business, the number of persons involved, whether you want full control or prefer to share responsibilities, capital requirements, tax regulations and liability.

Sole proprietor

This is the simplest and the least expensive form of business organization. There is one owner, and this person is responsible for all aspects of the business. However, as a sole proprietor you are personally liable for business debts and must claim business expenses and revenues on your personal income tax return.

Partnership

A partnership is an agreement between two or more parties to combine their talents and resources in order to share ownership of a business. While a partnership is often less expensive to form than a corporation, other complexities arise. It is highly recommended that you seek legal advice to draw up a partnership agreement which clearly defines each partner's rights and responsibilities. The Canada/Manitoba Business Service Centre library has sample partnership agreements you can refer to. Generally, each partner is responsible for all aspects of the business, including any wrongful act or omission caused by the other partner(s) in the course of business. Each partner is also personally and jointly liable for all debts and other obligations incurred in the name of the company by any partner regardless of whether or not these were authorized by the other partners.

An alternate form of partnership, known as a limited partnership, is an arrangement wherein one partner is strictly an investor and liable only to the extent of their capital investment in the company. The limited partner, however, cannot participate in managing the company and may not withdraw the capital they invested during the term of the partnership.

Corporation

A corporation's main advantage is that it is a separate entity from its shareholders. This means the personal liability of the shareholders for the debts of the company is limited. Certain tax advantages are also available to corporations. There are, however, more regulations governing corporations, additional paperwork, and higher fees to start-up and maintain the corporation's standing. You can incorporate provincially, which means your liability is limited within the province of incorporation, or you can incorporate federally which limits your liability across Canada and offers name protection second only to a Trade-mark.

Cooperative

A cooperative is an enterprise, or business, owned by a group of people seeking to satisfy a common need. For example, a group of people such as independent entrepreneurs, artists or farmers will use this type of enterprise to cooperatively process and market the goods or services they have produced. A cooperative can be incorporated either provincially or federally. The cooperative's start-up capital usually comes from cooperative shares purchased by members.

Contact  the C/MBSC if you would like more information about the various business structures and the advantages and disadvantages of each.

Registering Your Business Name

No matter what form of ownership you choose (sole proprietorship, partnership, incorporation or business cooperative), you should register the name of your business with the Companies Office.  When you register your business name, you are assured that no one else is carrying on business under that name in the Province of Manitoba.  The Companies Office must first perform a Name Search ($40.00 for Manitoba-wide search) to ensure the name is not currently in use.  If the name you have chosen is not in use, the Companies Office reserves the name for you for 90 days, at which time you must register ($45.00).  Fees differ for incorporation.

You may obtain the forms for business name registration from the C/MBSC or from the Companies Office (visit them online at  http://www.companiesoffice.gov.mb.ca)

If you have any questions about the business registration process, please contact the Companies Office at 204-945-2500 or toll free 1-888-246-8353.

The Business Number

To simplify business dealing with government, Manitoba adopted the Business Number (BN) to replace the multiple numbers previously used to identify the same business. The national Business Number (BN), administered by Canada Revenue Agency (CRA) is recognized by federal and provincial jurisdictions known as "One Business, One Number".

Currently, when you register your business with Canada Revenue Agency, Companies Office or Taxation Division of Manitoba Finance, you are assigned a Business Number (BN) for your business. The BN is a unique nine-digit business identifier; followed by 6 characters which identify the account. To register for other programs for your business, the BN (the first 9 digits) will always be used but it will have a different 6-character suffix.

When you contact these offices, provide the BN you were assigned, for that is what identifies your business. To avoid a duplicate BN, it is important that the ownership type (sole proprietorship, partnership or corporation) of your business be recorded the same at each office. If you are registering with a second participating office prior to receiving your BN from the first registering office, advise the second office that a BN has already been requested on your behalf.

You will need a Business Number from Canada Revenue Agency:
1. To collect and remit GST/HST
2. To file your annual tax return if your business is incorporated
3. To remit payroll deductions (Income Tax, EI, CPP) for your employees
4. If you are importing or exporting goods to and from Canada

 For information about the BN contact Manitoba Business Links 204-945-0514 or toll free 1-866-205-1657. 

Business Licenses

If your business is located in the City of Winnipeg...

You may need several licenses and/or permits depending upon the type of business you are operating. For information on licensing contact the City of Winnipeg at 311.

If your business is located outside of Winnipeg...

The Municipal Act of Manitoba empowers all rural municipalities to regulate certain trades and occupations carried on within their boundaries. Therefore, it is up to each municipality to set its own licensing requirements. These regulations vary among the 201 municipalities within Manitoba. For more information, contact your local municipal office. If you need help determining where your municipal office is located, contact Manitoba Local Government office toll free 1-866-626-4862 or online at http://web5.gov.mb.ca/public/municipalities.aspx.

BizPaL

BizPaL is a free on-line service that helps entrepreneurs save time, effort and money by providing a customized list of the permits and licences that are required by all three levels of government (federal, provincial and municipal) to start or grow their business. Easy and convenient, BizPaL uses a question-and-answer format to help generate the information you need when you need it. Whether you want to start or grow your business BizPaL can help.

BizPaL also provides contact information and access to on-line application forms, where available.

For further information call 204-945-2526 or visit http://www.bizpalmanitoba.ca/?b=46.

Financing

There are many programs and services available from the federal and provincial governments as well as private organizations to help new businesses. For more information, call the C/MBSC 204-984-2272 or 1-800-665-2019 or visit our website http://www.canadabusiness.mb.ca//home_page/guides/#govprograms

Taxation

Federal Taxes

Goods and Services Tax (GST)

You must register for and charge the GST if:

• You sell or provide taxable goods or services in your commercial activities in Canada; and
• Your total taxable revenues are more than $30,000 in the immediately preceding four consecutive calendar quarters; or
• Your sales exceed $30,000 in a single calendar quarter

If your sales do not exceed $30,000 in four consecutive calendar quarters, you do not need to register nor charge GST. However, you still have the option of registering.

There may be instances when registering early can give you certain advantages, such as the right to claim the GST you pay on your business’s start-up expenses from the time you register.  For more information, contact Canada Revenue Agency at http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl/hw-eng.html .  

Federal Excise Tax and Duty

This applies to tobacco and alcohol and other products under the Excise Act and the Excise Tax Act. For more information, contact Canada Revenue Agency at http://www.cra-arc.gc.ca/tx/tchncl/etsl-eng.html.

Provincial Taxes

Retail Sales Tax

Under Manitoba’s Retail Sales Tax Act, the provincial government imposes a tax on the retail sale of most goods and some services to consumers and users for the purpose of consumption or use and not for resale. All goods and services falling within the Act are taxed at 7%.  All retailers are required by law to register with Manitoba Finance. 

Dealers in propane, gasoline, diesel and heating fuels, inter-provincial trucking operators, dealers in tobacco products, dealers in electricity, natural gas and coal, retailers and other businesses affected by The Retail Sales Tax Act.

For more information, visit Manitoba Finance website at http://www.gov.mb.ca/finance/taxation.

Corporation Capital Tax

The Corporation Capital Tax (CTT) has been completely eliminated as at December 31, 2010.

Marketing 

The marketing plan has two main components: the first is researching your market to determine what consumers want or need, and then develop a product or service based on that information. The second component is to develop an overall marketing strategy to meet your objectives. The Canada/Manitoba Business Service Centre's Business library has several publications to help you with this process.

For more information on market research, please review the following documents or visit the Canada Business website at http://www.canadabusiness.ca/eng/.

• Developing a marketing plan
• Marketing and Sales
• Your marketing strategies

Bookkeeping

Good records will help you:

• maintain accurate, up-to-date financial information on which to base management decisions
• identify the sources of your income
• maximize tax deductions
• eliminate a host of problems you might encounter if your income tax is audited or you have GST/HST returns
• keep informed about the financial position of your business
• obtain loans from banks and other creditors

A bookkeeper or an accountant can help you set up your records or you can do it on your own. For publications and videos on bookkeeping call the Canada/Manitoba Business Service Centre at 204-984-2272 or 1-800-665-2019.

Will You Be Conducting Business on the Internet?

The C/MBSC has publications and offers Seminars on e-business topics such as online marketing, building a website, security and the internet, integrating e-business into a small business, internet payment processing, online legal issues and more.  

For more information phone 204-984-2272 or 1-800-665-2019.

Insurance

A wide variety of insurance products are available such as those covering fire, theft, or vandalism. Having the proper insurance coverage can offset a potentially serious loss of buildings, equipment, or inventory. It is likely that a lending institution will insist that adequate property insurance be carried as a condition for a loan.  Also, life insurance is often carried on a key individual(s) in an organization to minimize the impact of the absence of that individual(s).

Many specialized types of insurance are also available such as business liability insurance which protects your operations against legal action.  As well, certain assets of the business such as plate glass or boilers may be specifically insured against loss or damage. Other types of insurance include business interruption, crime coverage and broad form money and securities insurance. There is also insurance specifically for home-based businesses. Consult with your insurance professional to find out the coverage that is best for your type of business.

Bonding Insurance

Depending on what type of business you are in, you may be required (by law) to obtain bonding before any work can begin. There are contract bonds (used mainly in the construction industry) and commercial bonds which consists of five main bond categories that include license & permit, customs & excise, fiduciary, court and lost document bonds. Contact our Centre at 204-984-2272 or 1-800-665-2019 for more details on bonding or refer to our fact sheet on  Bonding Insurance.

Hiring Employees

Income Tax Deductions

You have to withhold income tax at the source from various types of remuneration such as salaries, wages, tips, gratuities, fees, commissions and bonus pay to name a few. For more information, contact Canada Revenue Agency at 1-800-959-5525 or visit the business tax section of their website at http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/menu-eng.html . 

Canada Pension Plan (CPP) Contributions

If your net self-employment income and pensionable employment income is more than $3,500, you will have to contribute to the Canada Pension Plan (CPP). 

If you have employees, you will also need to deduct CPP from salaries, wages, commissions and other forms of remuneration.

Employment Insurance (EI)

Most earnings, including tips and gratuities, as well as allowances that you pay completely or partly in cash to an employee are insurable.

Payroll Tax (Manitoba Finance)

This tax is paid by employers with a permanent establishment in Manitoba who pay more than $1.25 million per year in remuneration to employees.  Employers who pay $1.25 million or less per year are exempt.

Employment Standards

Designed to promote fairness for employees and employers, these standards cover a wide range of areas such as minimum wage, overtime, holidays, meals, breaks, maternity leave and termination, to name a few. Information is available at http://www.gov.mb.ca/labour/standards/ or call Manitoba Labour and Immigration at 204-945-3352 (in Winnipeg) or 1-800-821-4307.

Workers Compensation Board of Manitoba

In most cases, workers compensation coverage is mandatory if you employ workers. Contact the Registration Unit at 204-954-4321 or 1-800-362-3340, extension 4321 to find out whether your business requires workers compensation coverage or not. Registration can often be done over the telephone.

Other Services

Regional Offices

The Canada/Manitoba Business Service Centre has more than 32 regional offices located throughout Manitoba. These offices provide information on programs, services and regulations as well as business counselling and small library collections. 

Services for Women

• The Women’s Enterprise Centre of Manitoba offers financial assistance, mentoring and networking programs as well as business-related seminars targeted to women. Phone: 204-988-1860 or toll free at 1-800-203-2343 or visit the web site at http://www.wecm.ca.

• Entrepreneurship, Training and Trade, Women's Entrepreneurial Initiative promotes entrepreneurship as an economic alternative for women.  Contact Margaret Kelly at 204-945-7721 or toll free at 1-800-665-2019. 

Services for Aboriginal Peoples

For programs and services for Aboriginal peoples contact the Canada/Manitoba Business Service Centre at 204-984-2272 or 1-800-665-2019 or see our Aboriginal Business Guide for more information.

Services for individuals collecting Employment Insurance or Social Assistance who want to start a business

The Self-Employment Assistance Program provides income support, training and technical assistance to qualified Employment Insurance (EI) claimants to enable them to become self-employed. Contact your local Employment Centre about meeting with an Employment Service Advisor: http://www.gov.mb.ca/employment/emp_centre_locations.html. 
 
The SEED (Support Employment and Economic Development) Program helps low income people establish their own businesses in Winnipeg. SEED provides financial and business planning assistance, consulting and mentorship services and business management training. Contact 204-927-9935.

Services for Entrepreneurs with Disabilities

There are programs and services designed for individuals with disabilities who want to establish a business. The Canada/Manitoba Business Service Centre also offers specially equipped computers which allow individuals with disabilities to undertake business research on the Internet. Both the Centre and its washrooms are wheelchair accessible.  Any materials produced by the Canada/Manitoba Business Service Centre as well as any federal government department can be made available in alternative formats upon request. See our  Entrepreneurs with Disabilities Business Guide for more iinformation.

You may also contact the Independent Living Resource Centre at 204-947-0194 or Toll Free & TTY at 1-800-663-3043.

Services for Youth

There are many organizations and funding programs created for young entrepreneurs. Call the C/MBSC and ask for the Young Entrepreneurs Business Guide.

Canada/Manitoba Business Service Centre
250 - 240 Graham Avenue
Winnipeg, Manitoba R3C OJ7
Telephone: 204-984-2272
Fax: 204-983-3852
Toll-free (information): 1-800-665-2019
TTY Toll-free (hearing impaired): 1-800-457-8466
E-mail: manitoba@canadabusiness.mb.ca  
Web site: http://www.canadabusiness.mb.ca/

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

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