How To Start An Artisan and Craft Business In Ontario

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How To Start An Artisan and Craft Business In Ontario
Last Verified: 2007-03-27
This guide has been prepared by the Canada-Ontario Business Service Centre (COBSC), a
single point of access to information on federal and provincial government programs, services
and regulations.
Need more information?
Click: Canada-Ontario Business Service Centre
Call: 1-800-567-2345
Visit: our Regional Access Program Locations web site to locate an office near you
TABLE OF CONTENTS
1.
2.
3.
4.
5.
6.
7.
Basics To Getting Started
Industry Overview
Regulations
Financing
Managing Your Operation
Associations
Other Resources
1. Basics To Getting Started
Starting a business can be a rewarding undertaking, but it comes with its challenges. Before
starting a business in Ontario, it is wise to do your research. There are several issues to consider
such as regulations, financing, and taxation, managing your business, advertising and much
more.
For further information:
see these documents:
Business Start-Up Info-Guide
Home-Based Business
Market Research
It is essential that you know who your customers are, what they need or want, and how to reach
them. You should have solid understanding of these if you are going to run a successful
business.
For further information:
see the document: Market Research for Your Business
visit these web sites:
Study of the Crafts Sector in Canada
Guide to Culture Statistics
Canadian Fine Craft Niche Market Study
Study on International E–Commerce Sites
Travel Activities and Motivations Survey (TAMS)
2. Industry Overview
Whether you call them artisans or professional craft persons you are still speaking about skilled
individuals who create artefacts of singular beauty. The production of artisans'
spans the creation of essentially decorative items such as jewellery, ceramics and textiles to
more mechanically complex, utilitarian items such as hand-made musical instruments, customdesigned vehicles and intricate, hand-crafted mechanisms. The common thread that connects the
varied types of products made by artisans is the persistent sense of "the personal touch."
According to Trade Team Canada — Cultural Goods and Services , in its document Craft
International Trade Action Plan , the "Canadian craft sector generated $727 million in economic
activity in 2001, including over $100 million in exports." And the "majority (73%) of craft-producing
members of the provincial craft councils (PCC) operate as individual craft persons; 10% have
formed partnerships with others; and the remaining 17 percent have employees, ranging from a
single part-time employee to over 30 employees."* The agency also reports that ten percent of
people responding to the survey had craft revenues in excess of $120,000.
Counted among the artisan and crafts fields are:
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jewellery making
spinner
bookbinder
stained glass maker
weaver
carver
leather worker
stringed instrument maker
ceramist
doll maker
metalworker
glassworker
Certain businesses might require specific training or certification, such as:
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carpentry
interior design
masonry
glass blowing
metal working
ceramics
jewellery making
This is not an exhaustive list and different organisations and agencies would add to and subtract
from as well as make finer distinctions among these groupings. This inconsistency in
categorising artisans makes the gathering of complete data on this section of the economy
difficult.
Note: This guide does not address the specific requirements for staring and running a business
for artisans that work in the field of specialty foods or grooming. The COBSC has created
documents that may prove useful starting points for finding further information on these
industries.
For further information:
see the documents:
How to Start a Restaurant or Catering Business in Ontario
How to Start a Spa or Salon in Ontario
How To Start A Pet Business In Ontario
Business Licences
visit the web site: Service Ontario - Business information by industry
3. Training And Professional Skills Development
Many of the traditional fields worked by artisans have been absorbed by large scale
manufacturing industries, yet the skills needed in both remain similar if not the same. Artisans
seeking training in their respective disciplines can find sources of instruction though the
traditional artisan guilds and associations. Some of the basic technical skills needed by anyone
starting an artisan business can be acquired not only from a master craftsperson but also through
training offered to apprentices in the related industry, i.e. glass and metal sculptors could benefit
from apprenticeships that target the skilled trades in the construction sector. Collegiates, and
private and public, postsecondary institutions provide relevant instruction in these fields too.
Ontario Ministry of Training, Colleges and Universities
The Ministry of Training, Colleges and Universities’ web site has information on Ontario’s publicly
funded universities as well as a list of other educational institutions that can grant degrees and a
list of private career colleges that offer courses in the applied arts.
Ontario Ministry of Education
The Ministry of Education web site is also a good source of information on arts and arts-related
courses offered though your local school board.
For further information:
visit these web sites:
About Ontario Universities
About Ontario Colleges
Private Career Colleges (PCC)
Minister of Training, Colleges and Universities – Apprenticeship
Ministry of Education (MTCU) schools
SkilledTrades.ca
Professional Associations and Organizations
Artisan guilds, associations, groups, clubs and circles and other arts associations give workshops
and provide other means to contact, work with and learn from experienced, professional artisans
and artists. Also see the list of organizations in Section 7 “Associations”.
For further information:
visit the web site:
Canadian Crafts Federation
Ontario Crafts Council
Artists in Stained Glass (AISG)
Metal Arts Guild of Canada (MAGC)
Sculptors Society of Canada (SSC)
There is a great deal of business acumen among artisans and arts organisations. Networking and
making personal contacts are a very important part of finding information and acquiring business
skills specific to the arts sector. Some arts organisation offer opportunities in both structured and
less structured formats for artisan to get the training on the business side of the arts industry.
Cultural Human Resources Council (CHRC)
The Cultural Human Resources Council (CHRC) focuses on the area of cultural human resources
development. CHRC aims to draw together members of the arts disciplines and cultural industries
in the cultural sector to address the training and career development needs of all cultural workers
from the artists, technical staff, to everyone involved in the sector in a professional capacity
whether as an employee or the self-employed.
Created in 1995 to strengthen the Canadian cultural workforce, CHRC is one of 28 sector
councils supported by Human Resources Development Canada (HRDC). With general
membership and board members drawn from within the cultural sector, CHRC specifically works
in the areas of project development for a wide range of human resource management including
competency development and career planning for artists; career development tools; job
opportunity and virtual market place; networking resources; sector specific research and
information resources; and general advocacy for the sector. The web site offers a comprehensive
selection of assessment tools, guides and links to art organizations across Canada as well as
CultureWorks.ca , an online job search engine.
For further information:
please call 1-877-699-5559 or 613-562-1535
visit these web sites:
CHRC - Frequently Asked Questions
CHRC - Careers in Culture
CHRC - HR Tools
CHRC’s Competency Charts and Profiles
CHRC - Youth Internship Program (YIP)
4. Regulations
For regulatory or legal questions, it may be useful to contact a lawyer through the Law Society of
Upper Canada's Lawyer Referral Service.
For further information:
Please call (416) 947-3300 or 1-800-668-7380
visit the web site: The Law Society of Upper Canada
see the document: Selecting Professional Services
Municipal Regulations
Each municipal government has the authority to issue its own business licenses within its
jurisdiction. Since there is no uniformity throughout Ontario regarding municipal licenses for
businesses, you should consult with the appropriate local officials to determine whether your
business will be affected by local regulations and licensing requirements.
For further information:
visit the web site: Association of Municipalities in Ontario
see the document: Municipal Requirements to Start a Business
Building permits
The Building and Development Branch administers the Building Code Act, 1992 and the The
Ontario Building Code . These codes govern the construction of new buildings as well as the
renovation and maintenance of existing buildings. For information on your organization's specific
requirements please contact the Building and Development Branch of the Ontario Ministry of
Municipal Affairs and Housing .
Ontario Human Rights Code
All employers in Ontario must adhere to the Ontario Human Rights Code. The code states that all
Employment decisions should be based on the applicant's ability to do the job and not on factors
that are unrelated to the job.
For further information:
please call 1-800-387-9080 or (416) 326-9511
visit the web site: Ontario Human Rights Commission
Occupational Health and Safety Act
Almost every worker, supervisor, employer and workplace in Ontario is covered by the
Occupational Health and Safety Act and regulations. As an employer in Ontario, you have a
number of obligations, including a duty to instruct, inform and supervise your workers to protect
their health and safety. The Ministry of Labour produces a "Guide to the Occupational Health and
Safety Act" that can help you understand the rights and duties of all parties in the workplace. This
Guide is published on the Internet as Guide to the Occupational Health and Safety Act or can be
purchased from Publications Ontario at (416) 326-5300 or 1-800-668-9938.
Note: Some industries (such as highway and air transportation, radio and television broadcasting,
banks, etc.) fall under the federal government's Canada Labour Code , rather than the Ontario
regulations.
For further information:
please call (416) 326-7160 or 1-800-531-5551
visit the web site:
Law Society of Upper Canada's Lawyer Referral Service
Employee Self Help Kit
see these documents:
Occupational Safety and Health in Canada
Employment Regulations Info-Guide
Employment and Training Assistance Programs Info-Guide
Employee or Self-Employed?
Workplace Safety and Insurance
Most industries in Ontario are covered by the Workplace Safety and Insurance Act . Employers
must pay into the insurance fund of the Workplace Safety and Insurance Board (WSIB) through
assessments on their payrolls.
By contacting a WSIB office, you can obtain a registration kit, which includes information on
assessments, coverage, accident reporting requirements and appeals procedures. Employers are
required to contact the board within 10 days of hiring an employee.
The Employer and the Workplace Hazardous Materials Information System - WHMIS publication
describes the responsibilities of employers regarding hazardous materials used in the workplace.
For further information:
please call (416) 344-1000 or 1-800-387-5540
see the document Workplace Safety and Insurance Board - WSIB
Note: The Office of the Employer Adviser (OEA) provides employers with advice, education,
representation, mediation, negotiation and information on workplace safety insurance.
For further information:
please call (416) 327-0020 or 1-800-387-0774
see the document Office of the Employer Adviser - Advice For Employers
Labelling
Most goods produced domestically or imported into Canada require some form of consumer
package labelling. Retailers should become aware of these requirements before offering goods
for sale in Canada. The Labelling act(s) are enforced and administered by the Competition
Bureau.
For further information:
please call 819-997-4282 or 1-800-348-5358
see these documents:
Labelling - Packaging Consumer Products (Non-Food)
Labelling - Textiles
CA Number Registration and Database
visit the web sites:
Competition Bureau
Guide to the Textile Labelling and Advertising Regulations
Guide to the Consumer Packaging and Labelling Act and Regulations
Bar Codes
The Universal Product Code system provides manufacturers, retailers and distributors with a
management and information tool to uniquely identify products and logistical units throughout the
supply chain.
For further information:
see the document Bar Codes
Precious Metals Marking
The Precious Metals Marking Act provides for the uniform description and quality marking of
precious metals articles (articles made with gold, silver, platinum or palladium) to help consumers
make informed purchasing decisions.
For further information:
consult the document Precious Metals Marking
Hazardous Products Act
Some consumer products such as cosmetics, toys, and children's clothing are regulated by
Health Canada through the Hazardous Products Act . The Regulations specify the requirements
for labelling and instructions for assembling, design, construction, finish, performance,
flammability and toxicity. Businesses that manufacture, retail or import consumer goods should
be aware of all labelling requirements regarding their product.
For further information:
See the documents:
Products Banned Under the Hazardous Products Act
Products Regulated Under the Hazardous Products Act
Non Regulated Items of Concerns Under the Hazardous Products Act
5. Financing
There are programs available through the Department of Canadian Heritage and the Arts and
Cultural Industries Promotion Division of the Foreign Affairs Canada (FAC) to support
various activities in this area.
For information on culture related federal funding programs:
please call (Canada Council for the Arts) 1-800-263-5588 or (613) 566-4414
visit the web site: Grant Programs for Artists and Arts Organizations
please call Canada Heritage at 1-866-811-0055 or (416) 954-0395
visit the web site: Financial Support Programs
please call (Department of Foreign Affairs and International Trade) (613) 995-0674 or 1-888757-7752
visit the web site: Arts and Cultural Industries
Arts Presentation Canada
Arts Presentation Canada gives Canadians direct access to diverse, quality artistic experiences
through financial assistance to arts presenters or the organizations that support them.
Eligibility requirements
Canadian, not-for-profit organizations incorporated under Part II of the Canada Corporations
Act (or under corresponding provincial or territorial legislation) offers assistance to artists that
present, in a professional manner, artistic experiences originating from more than one province or
territory or that strengthen networking activities of Canadian performing arts presenters.
Presenters that are provincial/territorial, municipal institutions or First Nation Tribal or Band
Council / Inuit Organizations will also be considered.
For application deadlines contact Arts Presentation Canada directly.
For further information:
please call 1-866-811-0055 or (416) 954-0395
Canada Council for the Arts
The Canada Council for the Arts is a national arm’s length agency created in 1957 to "foster and
promote the study and enjoyment of, and the production of works in, the arts." Canada Council
provides grants and services to professional Canadian artists and arts organizations.
Contact the Canada Council directly if you require information on a specific grant program, a
program information sheet (or, if you have already decided to apply, request an application form
and guidelines for that program). If you need a listing of all grants available in your particular
discipline, request the summary of grants available for that discipline.
For further information:
please call 1-800-263-5588
visit the web sites: Canada Council for the Arts - Grant Programs
Business Support for Young Artists – The Summer Company Program
The Summer Company program provides hands-on business training and mentoring – together
with awards of up to $3,000 – to help enterprising young people (students aged 15-29) start up
and run their own summer business. Many participants of the program successfully started and
managed an arts-based business (e.g., fashion design, drama programs, music instruction, etc.)
Summer Company is coordinated and delivered at the community level through a network of
Small Business Enterprise Centres and other program providers supported by the government of
Ontario.
For further information:
please call 1-800-387-5656
see the document Summer Company
The Canada-Ontario Business Service Centre has created documents, which provide an
overview of some of the main financing options for individuals starting and operating a business
in Ontario, including programs offered or supported by the government
For further information:
please call 1-800-567-2345
see the documents:
Financing for Starting a Business Info-Guide
Financing for Established Businesses Info-Guide
6. Managing Your Operation
Dealing with Business Taxes
All businesses must be aware of the various taxes that may apply to their product or service.
Depending on the type and location of products or services being offered, federal, provincial
and/or municipal business taxes may apply.
For further information:
visit these web sites:
Provincial Tax Forms and Publications
Ontario Small Business Guide
Canada Revenue Agency (CRA)
see the document: Taxation Info-Guide
Income Tax Information
Business owners must be aware of the requirements of Income tax that may apply to their
product or service. There are different tax implications for incorporated and non-incorporated
businesses. For information specific to your organization you should consult an accountant or
financial professional.
For further information:
please call 1-800-959-5525
visit these web sites:
Ontario Income Tax
Ontario Corporations Tax
Canada Revenue Agency - Topics for businesses
see the document: Taxation Info-Guide
The following federal tax information may be specifically applicable to the art-based business
owner.
IT-273R2 Government Assistance -- General Comments
Employed artists
T4002 Business and Professional Income 2006
Topics - Employment expenses
IT-407R4 (Consolidated) Dispositions of Cultural Property to Designated Canadian Institutions
IT-110R3 Gifts and Official Donation Receipts
IT-257R Canada Council Grants
IT-288R2 Gifts of Capital Properties to a Charity and Others
IT525R-CONSOLID Performing Artists
IT504R2-CONSOLID Visual Artists and Writers
IT75R4 Scholarships, Fellowships, Bursaries, Prizes, Research Grants and Financial Assistance
Line 130 - Scholarships, fellowships, bursaries (study grants), and artists' project grants
IT490 Barter transactions
Work space in home expenses
IT-357R2 Expenses of Training
IT120R6 Principal Residence
Motor Vehicle Expenses Claimed by Self-Employed Individuals
Below are links to publications that cover some of the general tax requirements for business
owners in Ontario.
Ontario Small Business Guide
This booklet will guide you through various aspects of Retail Sales Tax, Corporations Tax and
Employer Health Tax. This booklet also answers some of the frequently asked questions of small
business owners regarding tax obligations.
Employer Health Tax - Guide for Employers
Describes the main features of the EHT (Employer Health Tax), including taxpayer rights and
responsibilities under the Employer Health Tax Act.
For further information:
see the document: Employer Health Tax
Retention/Destruction of Books and Records
Explains the retention period required for Ontario tax purposes, before books and records can be
destroyed.
Voluntary Disclosure
Explains what voluntary compliance is and the basic principles under which Ontario's tax system
operates.
Selecting Professional Services
The use of professional services is essential to the success of a small business. Professionals
can provide knowledge and expertise in the areas where you may have little. They can round out
your management team to ensure your business is operating efficiently.
For further information:
see the document: Selecting Professional Services
Accounting/Bookkeeping
A good record keeping system should be simple to use, easy to understand, reliable, accurate,
consistent and designed to provide information on a timely basis.
Note: All staff working with cash should be trained to recognize counterfeit currency.
Setting-Up a Pay System
Pay administration is a management tool that enables you to control personnel cost, increase
employee morale, and reduce workforce turnover.
For further information:
see the document: Setting Up a Pay System
Setting the Right Price
Setting the right price can influence what consumers will buy, which in turn affects total revenue
and profit.
For further information:
see the document: Setting the Right Price
Profit Watching
Making a profit is the most important -- some might say the only objective of a business.. To
make improvements, you must know what's really going on financially at all times.
For further information:
see the document: Checklist for Profit Watching
Employing people
What are the rules on working conditions in Ontario?
The Employment Standards Branch of the Ministry of Labour is responsible for the
administration and enforcement of the Employment Standards Act, which provides for minimum
terms and conditions of employment in most industries.
For further information:
please call (416) 326-7160 or 1-800-531-5551
see the documents:
Employment Regulations Info-Guide
Employment and Training Assistance Programs Info-Guide
7. Associations
Canadian Crafts Federation
Canadian Gift & Tableware Association
Society of Graphic Designers of Canada
The Ottawa Guild of Potters
Fusion: The Ontario Clay and Glass Association
Canadian Doll Artist Association - Programs
Potters' Guild of Hamilton and Region
The Canadian Guild of Crafts
Ontario Artist Blacksmith Association (OASBA)
Ontario Handweavers & Spinners (OHS)
Canadian Quilters’ Association
Canadian Craft and Hobby Association
Canadian Bookbinders and Book Artists Guild (CBBAG)
8. Other Resources
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SODART Société de droits d’auteur en arts visuels (in French only)
The Works International Visual Arts Society
SQUARE FEET The Artist's Guide to Renting and Buying Work Space
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Canadian Artists' Representation - CARFAC
The Healthy Artist Guide to a Less Toxic Studio
Related Reading
 List of Fact Sheets
 Aboriginal Business Info-Guide
 Your Business and the Environment Info-Guide
 Tourism Business Info-Guide
 Growing Your Business
 Arts and Artists Info-Guide
 Business Guides
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.
Links Policy
Some of the hypertext links lead to non-federal government sites which are not subject to the
Official Languages Act and the material is available in one language only.
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