2016
Business Start-up
Information
Business Start-Up Information 2016
Economic Partners Sudbury East / West Nipissing is a community-based, non-profit organization that is
dedicated to creating opportunities for entrepreneurship and to the pursuit of economic growth in our
community. We are your local branch of the Community Futures Development Corporation (CFDC) and a
member of the Ontario Association of Community Futures Development Corporations (OACFDC). Funded
by Industry Canada and FedNor, CFDC is a community economic development initiative designed to help find
local solutions for local economies.
Who We Serve
We service a total catchment population of 21,277 people that includes the following communities:
Sudbury East
 Dokis First Nation
 French River
 Markstay-Warren
 St. Charles
West Nipissing
 Nipissing First Nation
 Nipissing
What We Do
We are people helping people. Run by a board of local volunteers and professional staff, we take a grass roots
approach to investing in local entrepreneurs, exporters, and community initiatives.

Here are the key services that we offer you:
o
o
o
Community economic planning and development
Access to funding for community projects and small businesses
Business counselling, services, and resources
30 Front Street, Unit A
Sturgeon Falls, ON P2B 3L4
Telephone: 705-753-5450
Fax: 705-753-3456
Website: www.economicpartners.com
Email: info@economicpartners.com
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Business Start-Up Information 2016
Table of Contents
Business Start-Up Checklist ..................................................................................................................... 4
Business structures.................................................................................................................................... 5
Option 1: Sole proprietorship ................................................................................................................ 6
Option 2: Partnerships ........................................................................................................................... 7
Option 3: Corporations .......................................................................................................................... 8
Option 4: Cooperatives .......................................................................................................................... 9
Licenses, permits and registrations ....................................................................................................... 10
Municipal................................................................................................................................................ 11
Provincial ............................................................................................................................................... 11
Master Business License ................................................................................................................ 11
Ontario’s Workplace Safety and Insurance Board ...................................................................... 13
Ontario’s Employer Health Tax (EHT) .......................................................................................... 14
Ontario’s Employment Standards .................................................................................................. 15
Ontario Tax Services (ONT-TAXS) ............................................................................................... 16
Retail Sales Tax ............................................................................................................................... 16
Federal ................................................................................................................................................... 17
GST/HST ........................................................................................................................................... 17
Payroll Deductions (Source Deductions) ...................................................................................... 18
Business Insurance.................................................................................................................................. 19
Industry Specific Contacts ...................................................................................................................... 19
Useful Internet Sites................................................................................................................................. 20
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Business Start-Up Information 2016
Business Start-Up Checklist
Business Preparation
 Business Idea
 Chose an option (start a new business, buy an existing one or purchase a franchise)
 Chose ownership (sole proprietorship, partnership, or corporation)
 Chose your business name
 Prepare a business plan
Business Start-Up
 Register your business name with the province of Ontario(Master Business License)
 Register for HST/GST and/or payroll deductions with Canada Revenue Agency (if
applicable)
 Check zoning and land use regulations with the municipality
 Register and apply for all Municipal licenses and permits (if applicable)
 Contact the Ministry of Labour for any Employment Standard questions
 Register with Workplace Safety and Insurance Board (if applicable)
 Register with industry specific agencies (if applicable)
 Open a business bank account
 Lease or purchase appropriate business premises and equipment
 Purchase appropriate insurance for your business activities
 Interview and hire expert help (lawyer, accountant)
 Determine your employee needs and hire capable people (if applicable)
 Determine your marketing initiatives and launch them
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Business Start-Up Information 2016
Business structures
Choosing the structure that is suitable for your business can sometimes be challenging.
However, it is wise to evaluate each form of business organization to determine which one is
appropriate.
Now that you have decided on starting your own business, you will have to determine what
business structure or form of organization suits your needs. The structure of your business will
depend on whether you want to run your business yourself or with a partner or associates.
There are four types of business structures:
 Sole proprietorship
 Partnerships
 Corporations
 Cooperatives.
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Option 1: Sole proprietorship
With this type of business organization, you would be fully responsible for all debts and
obligations related to your business and all profits would be yours alone to keep. As a sole
owner of the business, a creditor can make a claim against your personal or business assets to
pay off any debt.
This form of business organization is the most simple and common for self-employed people.
Any income generated and expenses incurred are claimed through personal income taxes each
year.
If the business will operate in your given name, you are not required to register the business. If
you attach any word to your given name, you are required to register under the Business
Names Act.
Example:
Frank Ford – Does not need to register
Frank Ford Trucks – Needs to register
Advantages:

easy and inexpensive to form a sole proprietorship (you will only need to register your
business name provincially, except in Newfoundland and Labrador);

relatively low cost to start your business

lowest amount of regulatory burden

direct control of decision making

minimal working capital required to start-up

tax advantages if your business is not doing well, for example, deducting your losses
from your personal income, lower tax bracket when profits are low, and so on

all profits will go to you directly
Disadvantages:

unlimited liability (if you have business debts, personal assets would be used to pay off
the debt)

income would be taxable at your personal rate and, if your business is profitable, this
may put you in a higher tax bracket

lack of continuity for your business, if you need to be absent

difficulty raising capital on your own
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Business Start-Up Information 2016
Option 2: Partnerships
A partnership would be a good business structure if you want to carry on a business with a
partner and you do not wish to incorporate your business. With a partnership, you would
combine your financial resources with your partner into the business.
You can establish the terms of your business with your partner and protect yourself in case of a
disagreement or dissolution by drawing up a specific business agreement. As a partner, you
would share in the profits of your business according to the terms of your agreement.
You may also be interested in a limited liability partnership in the business. This means that you
would not take part in the control or management of the business, but would be liable for debts
to a specified extent only. There must be at least one managing partner, and that one partner
has unlimited liability. The limited partner will become a general partner if they take on ANY part
of the management in the partnership.
When establishing a partnership, you should have a partnership agreement drawn up with the
assistance of a lawyer, to ensure that:

you are protecting your interests

that you have clearly established the terms of the partnership with regards to issues like
profit sharing, dissolving the partnership, and more

that you meet the legal requirements for a limited partnership (if applicable)
Advantages:

easy to start-up a partnership

start-up costs would be shared equally with you and your partner

equal share in the management, profits and assets

tax advantage, if income from the partnership is low or loses money (you and your
partner include your share of the partnership in your individual tax return)
Disadvantages:

similar to sole proprietorship, as there is no legal difference between you and your
business

unlimited liability (if you have business debts, personal assets would be used to pay off
the debt)

hard to find a suitable partner

possible development of conflict between you and your partner

you are held financially responsible for business decisions made by your partner (for
example, contracts that are broken)
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Business Start-Up Information 2016
Option 3: Corporations
Another business structure is to incorporate your business. This can be done at the federal or
provincial level. When you incorporate your business, it is considered to be a legal entity that is
separate from the owners and shareholders. As a shareholder of a corporation, you will not be
personally liable for the debts, obligations or acts of the corporation.
Advantages:

limited liability

ownership is transferable

continuous existence

separate legal entity

easier to raise capital

possible tax advantage as taxes may be lower for an incorporated business
Disadvantages:

a corporation is closely regulated

more expensive to incorporate than a partnership or sole proprietorship

extensive corporate records required, including shareholder and director meetings, and
documentation filed annually with the government

possible conflict between shareholders and directors

possible problem with residency of directors, if they are in another province or the
majority are not Canadian
It is important to note:

If the owner personally guarantees a contract, then that owner is taking on liability.

If the owner personally does something that affects the business, they will be held
responsible/liable.

If the owner files the incorporation papers themselves, if there are any mistakes or
missing clauses, they would become personally liable once again.
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Business Start-Up Information 2016
If you have decided to incorporate your business, you have some options to consider.
1. Two types of Incorporation:
 Provincial
 Federal
2. Incorporating the business name (IE. Ford Inc.)
Or
Registering as a numbered company (IE. 123456 Ford Ltd.)
3. Two options for filing the Articles of Incorporation
 Independently (file by yourself)
 Hiring a lawyer to complete the process on your behalf (suggested)
Note:
If you register as a numbered company and you wish to use an “operating as” name, you must
register that name under the corporation with the province (Master Business License).
Option 4: Cooperatives
The last business structure you could create is a cooperative. With a cooperative, you would
have a business that would be owned by an association of members. This is the least common
form of business, but can be appropriate in situations where a group of persons or businesses
decide to pool their resources to provide access to common needs, such as the delivery of
products or services, the sale of products or services, employment, and more.
Advantages:

owned and controlled by members

democratic control (one member, one vote)

limited liability

profit distribution
Disadvantages:

possible conflict between members

longer decision-making process

participation of members needed for success

extensive record keeping

less incentive to invest additional capital
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Business Start-Up Information 2016
Licenses, permits and registrations
This checklist shows the different licenses, permits, or registrations that you may be required to
obtain from the different level of governments.
Municipal
- Licenses and permits
- Zoning regulations
Provincial
-Provincial Incorporation
-Master Business License
-WSIB Insurance
- Employer Health Tax (EHT)
-Ministry of Labour
-RST (retail sales tax)
Federal
-Federal Incorporation
-GST/HST
-Payroll Deductions
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Business Start-Up Information 2016
Municipal
Ensure that you review the business licenses, by-laws, zoning, and business taxes with your
Municipality.
The Corporation of the Municipality of West Nipissing
225 Holditch Street, Suite 101
Sturgeon Falls, Ontario P2B 1T1
Tel: (705)753-2250
Fax: (705)753-3950
www.westnipissingouest.ca

Jean-Pierre Barbeau, Chief Administrative Officer

Marc Gagnon, Director or Public Works

Louise Laforge, Tax Collector & Deputy Treasurer

Roger Kennedy, Hydro Superintendant

Melanie Ducharme ,Planning Director

Peter Ming, Water & Sewer

Ginette Rochon, Environmental & Power Generation
Provincial
Master Business License
This license is required for all businesses operating in Ontario under a trade/business name.
The license allows the business to advertise the name and to open a business bank account.
Financial institutions require proof of registration to open a business account. The Master
Business License will provide them with the business identification number (9 digit ID number).
Registration Activity
Cost @ OBC
Sole Proprietorship
$60
Partnership
$60
Name Check
$8
Online Registration $60
Current fees* (as of March 17, 2011)
Cost via mail
$80
$80
$12
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Business Start-Up Information 2016
Please Note: You are only able to search for records in the Ministry of Government Services'
current database. The database only contains business names registered within the past five
years.
Also, the registration of the business name does not grant you exclusive use of the name. In
order to legally protect your business name, you would have to register a trademark/trade name
or incorporate that name in the area you wish to be protected.
To register and/or obtain more information, contact:
Sole proprietorship or partnerships in Ontario are registered through Ontario Business Connects
(OBC). These consist of workstations in business help centers, and registration can also be
done online. Your business registration is valid for five years, after which time you need to
renew your registration.
In person:
Economic-Partners Sudbury East West Nipissing
30 Front Street, Unit A
Sturgeon Falls, ON P2B 3L4
705-753-5450
(payment by credit card only)
Service Ontario
Unit 111, 447 McKeown Avenue
North Bay, ON
General Inquiries: 1-800-267-8097
(payment by credit card or cash)
Online:
https://www.ibsa.serviceontario.ca/ibsa/servlet/com.visionmax.servlet.
CommandServlet?command=screenflownoscript&screenid=26
By phone:
Service Ontario
Toll-free 1-800-267-8097
By mail:
Ministry of Government Services
393 University Avenue
Toronto, ON M5G 2M2
$80.00 fee
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Business Start-Up Information 2016
Ontario’s Workplace Safety and Insurance Board
(Formerly Worker’s Compensation)
Most businesses in Ontario must register with the WSIB within 10 days of hiring their first
worker. Registering provides workplace insurance coverage for all of your workers, gives you
peace of mind, and lets you access experts in health and safety.
The benefits of registration are clear:

No-fault insurance.

Greater protection, since in most cases workers can't sue you following a work-related
injury or illness.

Benefits for your workers — WSIB insurance replaces lost earnings and covers health
care costs resulting from work-related injuries and illnesses.

Help in returning your workers to the job — and returning your business to full
productivity.

Training and prevention programs.
To register and/or obtain more information, contact:
Registration Hotline at 1-866-734-9742
Workplace Safety and Insurance Board
128 McIntyre Street West
North Bay, ONP1B 2Y6
Tel: 705-472-5200
1-800-461-9521
www.wsib.on.ca
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Business Start-Up Information 2016
Ontario’s Employer Health Tax (EHT)
The Employer Health Tax is a payroll tax that applies to all employers in Ontario. Eligible
employers do not pay tax on the first $400,000 of annual Ontario payroll. If you are associated
with another employer, you have to share the tax exemption.
You have to pay EHT if you are an employer and you:

Have employees who report for work at your permanent establishment in Ontario

pay your employees from your Ontario permanent establishment if they don't report for
work at your permanent establishment, and

have Ontario remuneration over your share of the tax exemption.
To register for an EHT account you must provide the following information:

legal name

trade name

business address

mailing address

telephone and fax numbers

name of contact person or authorized representative

payroll start date

payroll frequency and amount to determine if you are a yearly, monthly or special filer

federal business number

employer type to determine if you are an associated employer, multiple account
employer or public sector employer.
To register and/or obtain further information, contact:
Employer Health Tax
The Ministry of Revenue toll-free at 1 866 ONT-TAXS (1 866 668-8297)
http://www.rev.gov.on.ca/en/tax/eht/
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Ontario’s Employment Standards
Fairness in the workplace is the right of all Ontarians.
Employment standards are enforced under the Employment Standards Act, 2000 (ESA), which
sets out the minimum standards that employers and employees must follow.
The Ministry of Labour, through its Employment Standards Program:

enforces the ESA and its regulations

provides information and education to employers and employees, making it easier for
people to understand and comply voluntarily

investigates possible violations

resolves complaints
To obtain more information, contact:
Employment Standards Information Centre
416–326–7160
1–800–531–5551 (Toll–free)
http://www.labour.gov.on.ca/english/es/
Ontario Ministry of Labour
159 Cedar Street
Sudbury, ON
P3E 6A5 Fax: 1-705-564-7435
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Business Start-Up Information 2016
Ontario Tax Services (ONT-TAXS)
At the Ministry of Revenue we continuously address the changing needs of Ontario's 600,000
tax clients and have made it simpler for Ontario businesses to comply with their tax obligations.
Businesses will now find themselves more connected and dealing with less paper.
Some of our improvements include:

one toll-free number; 1 866 ONT-TAXS (1 866 668-8297)

one business number;

new Internet services providing self-serve options

system improvements to provide you with convenient one-window service delivery.
To register and/or obtain more information, contact:
Ontario Tax Services
1 866 ONT-TAXS
http://www.rev.gov.on.ca/en/services/onttaxs/index.html
Retail Sales Tax
On July 1, 2010, the Retail Sales Tax (RST) was replaced by the Harmonized Sales Tax (HST).
The provincial portion of the HST is eight per cent and the federal portion is five per cent, for a
combined HST rate of 13 per cent.
To register and/or obtain information, contact:
1 866 ONT TAXS (1 866 668 8297).
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Business Start-Up Information 2016
Federal
GST/HST
As of July 1, 2010, Ontario harmonized its retail sales tax with the GST to implement the HST at
the rate of 13%. The HST rate of 13% includes the 5% federal part and 8% provincial part.
To register and/or obtain more information, contact:
Canada Revenue Agency
1-800-959-5525
www.cra.gc.ca
Before you register

Before you register, you need to know the following information:

Social Insurance Number

Business structure

Name of business

Location of business

Business activity

Representative/contact person

Obligations

Sales amount/reporting period

Fiscal year-end

Effective date

Accounting periods
The BN is a numbering system that simplifies and streamlines the way businesses deal with the
federal government. It is based on the idea of one business, one number. Not all businesses
require a BN and CRA program accounts.
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Business Start-Up Information 2016
Payroll Deductions (Source Deductions)
As an employer, trustee, or payer, you are responsible for deducting Canada Pension Plan
(CPP) contributions, Employment Insurance (EI) premiums and income tax from remuneration
or other types of income you pay, remitting them to us and reporting them on the applicable
slips. After you have made the deductions, you have to remit these deductions, plus your share,
to us. You then report the employee's income and deductions on the appropriate information
return.
Income Tax
As an employer, you are responsible for deducting income tax from the remuneration or
other income you pay. There is no age limit for deducting income tax and there is no
employer contribution required.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/ncmtx/menu-eng.html
Canada Pension Plan (CPP)
You have to deduct CPP contributions from an employee's remuneration if that
employee:

Is 18 years or older, but younger than 70;

is in pensionable employment during the year;

is not considered to be disabled under the CPP or QPP; and

does not receive a CPP or QPP retirement pension.
As an employer, you must also contribute the same amount of CPP that you deduct from
your employees' remuneration.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/cpp-rpc/menu-eng.html
Employment Insurance (EI)
You have to deduct EI premiums from your employees insurable earnings on each dollar
up to the yearly maximum.. As an employer, you must also contribute 1.4 times the EI
premium withheld for each employee.
Insurable employment includes most employment in Canada under a contract of service
(employer-employee relationship).
There is no age limit for deducting EI premiums.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/clcltng/ei/menu-eng.html
To register and/or obtain more information, contact:
Canada Revenue Agency
1-800-959-5525
www.cra-arc.gc.ca
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Business Start-Up Information 2016
Business Insurance
Needs for insurance will vary widely with the different types of businesses. Insurance coverage
at some level is required by most businesses and is usually necessary as a condition of a loan
from a financial institution. As a sole proprietor, having sufficient insurance coverage is
especially important because you are personally liable for all debts.
For those of you that are starting a home-based business, your existing homeowner’s policy
does not automatically cover business assets and operations. The latter also holds true for
vehicle insurance policies.
There are several types of commercial insurance to consider for your business, some of which
include:

Liability insurance

Home insurance

Vehicle insurance

Disability insurance

Property insurance
Contact an insurance broker to discuss your specific business insurance needs.
Industry Specific Contacts
For information on industry specific guides, please visit
Canada Business Ontario Service Centre:
http://www.canadabusiness.ca
1-888-745-8888
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Business Start-Up Information 2016
Useful Internet Sites
General Information
Economic Partners Sudbury East West Nipissing Inc.
Canada Business Ontario Service
Business Development Bank of Canada
www.economicpartners.com
www.canadabusiness.ca
www.bdc.ca
Market Research
Canada Business Ontario Service
StatsCan
The Corporation of the Municipality of West Nipissing
Industry Canada
www.canadabusiness.ca
www.statcan.gc.ca
www.westnipissingouest.ca
www.ic.gc.ca
Others
Provincial
Ministry of Economic Development & Trade
Ministry of Finance
Ministry of Revenue
Northern Ontario Heritage Fund Corporation
Health Unit e-laws
www.ontariocanada.com
www.fin.gov.on.ca
www.rev.gov.on.ca
www.nohfc.com
www.e-laws.gov.on.ca
Federal
Service Canada
Canada Revenue Agency (GST/HST, payroll, etc.)
Canadian Intellectual Property Office (patents, trademarks, etc.)
Canadian Boarder Services Agency (Import, Export)
Strategis – Industry Canada
FedNor – Industry Canada
www.servicecanada.gc.ca
www.cra-arc.gc.ca
www.cipo.ic.gc.ca
www.cbsa.gc.ca
www.ic.gc.ca
www.fednor.ic.gc.ca
Page 20 of 21
Business Start-Up Information 2016
30 Front Street, Unit A
Sturgeon Falls, ON P2B 3L4
Tel: 705-753-5450 / 1-866-448-4478
Fax: 705-753-3456
www.economicpartners.com
neil.fox@economicpartners.com
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