Business Start-Up Info-Guide

Are you thinking of starting a business? The process can be intimidating. That is where the Canada/Nova Scotia Business Service Centre (C/NSBSC) can make your life easier.

The C/NSBSC is your first point of access to information on federal and provincial government programs, services, and regulations.

Our computerized information systems provide the latest information on federal and provincial programs and services, financing programs, licenses and permits, purchasing opportunities, and current information on Canadian manufacturers, service firms, major industry sectors, and more. Our business reference library is also available for your use.

TABLE OF CONTENTS

1. What We Do
2. Start Up Checklist
3. Why Prepare a Business Plan
4. Marketing Plan
5. The Four Business Structures
6. Registering Your Business Name
7. Business Number
8. Taxation
9. Business Insurance
10. Bookkeeping System  
11. Are You Setting Up a Home-Based Business?
12. Business Resources in Your Area
13. Contact Information

1. What We Do

• Give information on a variety of federal and provincial government programs, services, and regulations through a bilingual call centre and business reference library;
• Supply referrals to other government departments for details on their programs, services and regulations;
• Provide access to Business Development Officers from: The Atlantic Canada Opportunities Agency (ACOA), and the Black Business Initiative (BBI);
• Provide access to representatives from: The Canadian Intellectual Property Office (CIPO), The Entrepreneurs with Disabilities Network (EDN), and Student Connections (SC);
• Provide access to directories, databases, and information on various business topics through our Business Resource Library.

The Canada / Nova Scotia Business Service Centre is accessible province-wide and free of charge. You may reach us through our toll-free number or visit our Business Resource Library with your questions. Our office is open from 8:30 a.m. to 5:00 p.m., Monday to Friday. We also provide a 24-hour business information service, seven days a week, through our Web site.

Here's how to reach us:
Canada Nova Scotia Business Service Centre
1575 Brunswick Street
Halifax, Nova Scotia B3J 2G1(free parking for clients)
Phone: (902) 426-8604 or 1-800-668-1010 (toll free)
TTY: (902) 426-4188 or 1-800-797-4188 (toll free)
Fax: (902) 426-6530
E-mail: halifax@cbsc.ic.gc.ca
Web site: http://www.cbsc.org/ns

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2. Start Up Checklist

One of the most common questions when starting a business is "Where do I start?" The checklist below will help answer that question. Remember, this checklist is a road map to starting a business, not a complete guide. Throughout this Resource Guide are references to more complete information for each of the sections.

• Conduct a self-assessment of your entrepreneurial suitability. See Self-Assessment Section
• Prepare a Business Plan. See Business Plan Section</ br>
• Prepare a Marketing Plan. See Marketing Plan Section
• Speak to Business Information Officers at a Business Service Centre, a Community Business Development Corporation or any of the business resources in your area See Business Resources in Your Area Section
• Ask for advice from professionals such as your banker, accountant, or lawyer.
• Contact your municipal government concerning zoning requirements or special licenses or permits.
• Register your business name with the Nova Scotia Registry of Joint Stock Companies. See Registering Your Business Name Section
• Check with the C/NSBSC, Access Nova Scotia, Service Nova Scotia and Municipal Relations, or Trade and Professional organizations to find out if there are any special licenses, permits, environmental concerns for your type of business.
• Set up a bookkeeping system. See Bookkeeping System Section
• If you are occupying commercial premises, you are required to contact the Regional Manager of Assessment at Service Nova Scotia and Municipal Relations within one week of opening your business. See Municipal Taxation Section
• Open a business account with your bank under your company's name.
• Contact Canada Revenue Agency Business Window (formerly Revenue Canada) in order to register for collecting HST (if applicable) remitting EI (if applicable), making CPP payments, corporate income tax, and import/export taxes (if applicable) and for information on claiming business expenses. See BusinessNumber and Taxation Sections
• Contact the Privacy Commissioner of Canada to learn about your responsibilities regarding your clients' privacy.
• Arrange for insurance coverage for your business. See Business Insurance Section
• If you need to register a Trade-mark, Copyright, Industrial Design or apply for a Patent, contact the Canadian Intellectual Property Office. Call 426-8604 or 1-800-668-1010.
• If you will be invoicing customers and charging interest on overdue accounts, contact Service Nova Scotia and Municipal Relations at 1-800-670-4357 for information on proper disclosure.
• If you are hiring employees, contact The Labour Standards Office, The Nova Scotia Human Rights Commission, the Occupational Health and Safety Division of the Department of Labour, the Workers Compensation Board and Canada Revenue Agency. See Contact Information Section

Self-Assessment - Take a Good, Hard Look

You're planning to take a big step to go into business for yourself - one of the most important decisions you'll ever make.

Rewards:

There are many: the freedom of being your own boss, the personal satisfaction of accomplishment, and the chance to earn an income that is only limited by your skill and determination. But you should also think about the pitfalls.

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 money. The unfortunate fact is that the majority (estimated as high as 70 per cent) of all new businesses fail within 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, look at yourself. Are you ambitious, confident, tolerant, energetic, persistent, a risk-taker, a problem solver, a planner? Successful small business owners often have most of these traits.

Considerations:

Do you love what you're doing? Are you knowledgeable about the business and do you have business training in management, marketing, finance, production? Do you have the ability to put together a business plan? If not, are you willing to take training courses in your weak areas? (The C/NSBSC has lists of training sources).

Options:

Can you bring someone else into the business who has these skills? Or have you considered a franchise where someone else has already made the mistakes and can provide guidance and support? If you've decided to go with one or more partners, are you confident the relationship is strong enough to weather the storms ahead? Partnership agreements can deal with this.

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 often more costly than you think. You may find it a lot harder to raise capital for your business than 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.

Source: Starting a Small Business in Nova Scotia by Nova Scotia Economic Development.

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3. Why Prepare A Business Plan?

Most business experts will say that the most crucial step in setting up a business is the planning stage. Unfortunately, this step often gets little attention or is skipped completely, leading to disastrous outcomes, such as the failure of the business, loss of investment, or loss of personal assets. This is why planning is so important. Anyone applying for financial assistance will need a business plan.

A business plan has the following benefits:

• outlines your business idea and helps to focus your thoughts
• commits your plans to writing
• helps you obtain financing
• helps you to understand your competition
• helps you understand your financial position
• helps you identify overlooked opportunities
• helps uncover potential weaknesses
• tests the commitment of you and your team members
• helps you anticipate and adapt to change
• provides you with a measure for evaluating your results

Where can you find more information about a business plan?

The Interactive Business Planner (IBP) is a computer software program that uses the capabilities of the Internet to assist you in preparing a 3-year business plan for a new or existing business. The IBP walks you through the business plan process, allows you to input your data, save and download it. The site is located at: http://www.cbsc.org/ibp

At the Canada/Nova Scotia Business Service Centre there are over 50 publications in our Reference Library that discuss various aspects of business plans. Some of these can also be accessed through public libraries, bookstores, or Business Service Centres in your area. See "Business Resources in Your Area" Section.

If you are looking for Business Plan templates or outlines, the Canada/Nova Scotia Business Service Centre has a list of sources. Call us at 426-8604 or 1-800-668-1010 for more information.

Do you need help with your business plan?

If you are looking for statistical information, try Statistics Canada, the Nova Scotia Department of Finance or the Canada/Nova Scotia Business Service Centre Resource Library or the Internet See Contact Information Section.

If you are looking for suppliers, manufacturers, competitors, business trends, licensing requirements, sector profiles, advertising rates, market research information, incubator sites, etc. call the C/NSBSC or visit our Resource Library.

If you need help completing your business plan call the C/NSBSC for a list of business consultants and resources in your area.

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4. Marketing Plan

The marketing plan consists of two main steps: the first step is to conduct market research to determine what consumers want or need, and then develop a product or service based on that information. You may want to be in touch with market research firms for this information, but organizations such as Statistics Canada and the Nova Scotia Department of Finance can also supply relevant information. The second step is to develop an overall marketing strategy to meet your objectives.

The Canada/Nova Scotia Business Service Centre resource library has titles such as "Look Before You Leap-Market Research Made Easy", and "Successful Sales and Marketing" to help you prepare marketing plans. Nova Scotia Economic Development's book "A Guide to Starting a Home-Based Business" has a wealth of marketing information See "Are You Setting Up a Home-Based Business" Section. Or, if you need assistance in creating these plans, there is help available. Some of the agencies listed in the See Contact Information Section of this guide offer assistance.

Statistics Canada

Statistics Canada is an invaluable resource for the many forms of statistical information you will need for your business plan and marketing plan. Family expenditure patterns, tourism and census data, questionnaire design, seminars and workshops are a few of the services offered. Significant information is offered free over the telephone or on the Internet. Information which must be compiled is usually provided for a fee. See Contact Information Section

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5. The Four Business Structures

One basic question facing all new business owners is "What business structure is best for me?" The four main types recognized in Canadian law are: sole proprietorship, partnership, limited company (corporation), and business cooperative. Each business form or structure allows and requires different things.

People new to business may think it doesn't matter how a business is organized or structured but it can make a big difference:

• The right structure can help you reduce costs and maximize profits.
• Investors or partners may only be interested in certain structures.
• Banks and other sources of money may be more willing to lend to certain business structures than others.
• A business structure affects how your business can grow.
• Taxation and tax planning are different in different business structures.
• Talk to your accountant and/or lawyer if you need further advice on which structure is best for you.

Call the C/NSBSC if you would like an overview of the various business structures with the advantages and disadvantages of each and if you would like information on Federal or Provincial Incorporation (or refer to: http://www.cbsc.org/osbw/session5/busforms.cfm)

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6. Registering Your Business Name

No matter what form of ownership you choose (sole proprietorship, partnership, corporation or business cooperative) for your business, you must register the name of your business with the Registry of Joint Stock Companies unless your business name is just your first and last name. When you register your business name you are ensuring yourself that no one else is carrying on business under that name.

First, the Registry must perform a Name Search ($49 for Atlantic Canada search and $61.24 for Canada-wide) to ensure the name is not currently in use. Private companies also perform Name Searches. Check the yellow pages of your telephone book under Searchers of Records. If the name you have chosen is not in use, the Registry reserves the name for you for 90 days, at which time you must register ($55, payable annually. Fees differ for incorporation). See the attached Name Reservation Request Form at the end of the printed version of this guide, or refer to the Registry's web site.

You can also register your business name on-line using the Nova Scotia Business Registry, available at: http://gov.ns.ca/snsmr/nsbr/entry.asp. It is accessible 24 hours a day, seven days a week. From any computer with an Internet connection you can:

• Register a business
• Apply for, pay, and renew business licences
• View and change business information

If you have any questions about the business registration process, please contact the Registry of Joint Stock Companies at 424-7770 or at 1-800-670-4357 or visit http://www.gov.ns.ca/snsmr/rjsc/forms.stm. There are also limited registry operations at your local ACCESS NOVA SCOTIA office See Access Nova Scotia Section.

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7. Business Number (BN)

You will need a Business Number (BN) from Canada Revenue Agency (CRA) for the following reasons:

• To file your annual tax return if your business is incorporated
• If you are importing or exporting goods to and from Canada
• To remit payroll deductions (Income Tax, EI, CPP) for your employees
• To collect and remit GST/HST.

Saving you a Step....

When you register with the Registry of Joint Stock Companies, you will also be assigned a Business Number (BN) from CRA. This number is a common identifier for many businesses. The Registry gets your BN automatically from Canada Revenue Agency (CRA, formerly Revenue Canada) who assigns it. Service Nova Scotia and Municipal Relations and the Workers' Compensation Board of Nova Scotia both use BNs now.

If you need to register for any accounts with CRA, such as GST/HST, import/export, or payroll deductions, the first step of getting the BN is done. Remember to give CRA your BN when you contact them.

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8. Taxation

Harmonized Sales Tax (HST)

You must register for and charge HST if:

you sell or provide taxable goods or services in your commercial activities in Canada and your total taxable revenues were more than $30,000 in the immediately preceding four consecutive calendar quarters, or 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 HST.

There may be instances when registering early can give you certain advantages, such as the right to claim the HST you pay on your business' start-up expenses from the time you register. For more information, contact Canada Revenue Agency or obtain a copy of their publications.

If you wish to register for the HST, you need a Business Number (BN). If you have recently registered your company name at the Registry of Joint Stock Companies, you will already have a BN. If not, just contact your nearest Canada Revenue Agency Business Window and explain that you want to register for the HST. You will be provided with a Business Number application form, or you may register over the telephone.

For more information, please contact:

General Information for GST/HST Registrants http://www.cra.gc.ca/E/pub/gp/rc4022/

Guide for Canadian Small Businesses http://www.cra-arc.gc.ca/E/pub/tg/rc4070/

Income Tax

You have to report your business income on an annual basis. Business income includes money you earn from a profession, a trade, a manufacture or undertaking of any kind, and an adventure or concern in the nature of trade or any other activity you carry on for profit or with a reasonable expectation of profit.

If you are a sole proprietor or a member of a partnership, you can obtain Income Tax information from Canada Revenue Agency's publications: "Business and Professional Income" and "Guide to Canadian Small Businesses". These publications will also give you an overview of the types of business expenses you can claim. Different rules apply to Incorporated companies. Canada Revenue Agency's publication called "T2 Corporation Income Tax Guide" has more details on the filing requirements for corporations.

Self-Employed Income Considerations

Employment Insurance (EI):

As a self-employed worker, you do not contribute to employment insurance nor will you be eligible to receive these benefits.

Canada Pension Plan (CPP):

As a self-employed worker, you will have to remit both shares of CPP contributions and your income tax in quarterly instalments.

For further information on tax implications for a self-employed worker, contact information for Canada Revenue Agency, See Contact Information Section

Municipal Taxation

If you are a tenant or property owner who occupies or uses commercial space, or operates a home-based business, you will be assessed for business occupancy tax. There are 55 municipal units in Nova Scotia, each with its own individual tax rate. Businesses in each municipality pay a Business Occupancy Tax based on an assessment made by Service Nova Scotia and Municipal Relations.

For the assessment office closest to you, please consult the blue pages of your telephone book under "Property Assessment", "Property Information" or "Assessment."

Tax Credits

There are a number of tax credit programs to assist businesses: Equity Tax Credits, New Small Business Tax Reduction (for incorporated businesses); Labour-Sponsored Venture-capital Tax Credits; Research and Development Tax Credits; Manufacturing and Processing Tax Credits. See the document Taxation Info-Guide or call the C/NSBSC for a copy.

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9. BUSINESS INSURANCE

A wide variety of insurance products are available. These include the standard insurance policies covering fire, theft, or vandalism, which can offset a potentially serious loss of buildings, equipment or inventories. 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. For example, business liability insurance may be obtained to help protect business operations against legal action. As well, certain important assets of the business, such as plate glass or boilers, may be specifically insured against loss or damage. Other types of insurance are business interruption, crime coverage, employee dishonesty, robbery/hold up, stock burglary, safe burglary and broad form money and securities insurance. The C/NSBSC has a publication entitled "Insuring Business Risks in Canada: How to get the most for your money". Also consult your insurance professional. See the document Business Insurance or call the C/NSBSC for a copy.

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10. BOOKKEEPING SYSTEM

Keeping good records are essential and can be a benefit for the following reasons:

• Good records can help you identify the sources of your income.
• Well-kept records can mean tax savings.
• Well-kept records can prevent most of the problems you might encounter if your income tax is audited or you have GST/HST returns.
• Records will keep you better informed about the financial position of your business.
• Proper books and records may help you get loans from banks and other creditors.

A bookkeeper or an accountant can help you set up your records, or you can find out more through "Guide for Canadian Small Businesses" available on the Internet at: http://www.cra-arc.gc.ca/E/pub/tg/rc4070/
See Contact Information Section

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11. ARE YOU SETTING UP A HOME-BASED BUSINESS?

Nova Scotia Business Inc. has published an excellent resource entitled A Guide to Starting a Home-Based Business. It is available at the Canada/Nova Scotia Business Service Centre Reference Library in Halifax, and at many Business Service Centres throughout the Province and public libraries.

You may also want to check with the municipal government in your area for a "Home Occupancy Permit Application". For the Halifax Regional Municipality, please contact (902) 490-5660.

12. Sources Of Business Loans

The following is a summary of major sources of government-assisted business loans. For detailed information call the organization directly or the C/NSBSC. (Please note: There are no grants to small business, only repayable loans.) In order to obtain a business loan, you first need a Business Plan.

• The Federal Government provides interest-free, unsecured business loans to certain business types through the Atlantic Canada Opportunities Agency. In Cape Breton the program is delivered by the Enterprise Cape Breton Corporation. Not all types of expenditures are eligible.
• The Federal Government provides loan guarantees through the Canada Small Business Financing (CSBF) Program.
• The Small Business Financing/ Loan Guarantee Program is a joint initiative of the Nova Scotia Co-operative Council, Nova Scotia Economic Development and Credit Union Central of Nova Scotia providing financing to eligible businesses. This program is delivered exclusively through credit unions in Nova Scotia.
• If you are outside the Halifax metro area, check with the Community Business Development Corporations (CBDC) in your area. The CBDC's provide financial assistance (loans up to $75,000 and, in some locations, up to $150,000), technical and advisory services to entrepreneurs. See Section on CBDC
• The Business Development Bank of Canada offers a variety of loan programs to fit each stage of a business' growth. Call 1-877-232-2269 for the nearest branch.
• The Black Business Initiative offers loans of up to $25,000 and business training to African-Canadian entrepreneurs. Call 426-2224 or the C/NSBSC at 1-800-668-1010 (Press 1, 3).
• If you are a Young Entrepreneur (18 - 34), there are special loan funds ($15,000 to $25,000) and programs for you. Call the C/NSBSC and ask for young entrepreneur financing information.

For specialized financing (i.e. Aboriginal, Aquaculture, Arts & Culture, Environmental, Technology) contact the C/NSBSC.

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13. BUSINESS RESOURCES IN YOUR AREA

Community Business Resource Network

There are 12 Community Business Resource Network locations throughout the province:

• Antigonish
• Port Hawkesbury
• Amherst
• Shelburne
• Bridgewater
• Sydney
• Digby
• Truro
• Kentville
• Windsor
• New Glasgow
• Yarmouth

By developing partnerships with community-based economic development organizations, we are able to provide you with access to some of our most popular resource materials at various sites across the province. The Network offers a range of popular publications and free Internet access for business-related research. The resources can assist you in the preparation of your business or marketing plans and direct you to market research material.

For a more complete list by county, call the Canada/Nova Scotia Business Service Centre at 426-8604 or 1-800-668-1010 (press 1, 2) to speak with a Business Information Officer. See the document Community Business Resource Network

Community Business Development Corporations

The Community Business Development Corporations (CBDC) are autonomous, not-for-profit corporations which serve most rural regions of Atlantic Canada supported by ACOA. They assist in the creation of small businesses, and in the expansion, modernization and stabilization of existing businesses. They offer both technical and financial services for entrepreneurs in their respective regions.

Technical assistance usually takes the form of information, counseling and advice on small business-related matters. Financial assistance is usually in the form of a loan but may include equity or loan guarantees.

These financial services are targeted to entrepreneurs who have difficulty securing capital through traditional sources of funding. They do not compete with financial institutions. All loans are repayable and can reach as much as $75,000 to $125,000, depending on the location. Investment decisions are made by an independent local board of directors sensitive to the needs of the community. Eligibility criteria may vary from office to office.

To obtain further information, and to find the CBDC near you call 1-888-303-CBDC (2232) or visit the CBDC web site at: http://www.cbdc.ca.

Access Nova Scotia

There are eight Access Nova Scotia Centres located around the province. The Halifax, Dartmouth, Bridgewater, Kentville, Sydney, Truro, Yarmouth and Antigonish offices have been set up by the Province of Nova Scotia to help people find out about government services, programs, and other information that may be useful to them. Business registration is also available on a limited basis. Some locations have free Internet access. Services vary from centre to centre. The centres offer On-Line Information Services, information on provincial, federal, or municipal governments, business-related statistics, Nova Scotia Government job openings, and much more. As well, representatives from various government agencies and development groups are on site on a full or part-time basis.

Call 1-800-670-4357 for the Access Nova Scotia centre nearest you.

Special Programs

There are special programs/services for entrepreneurs in the following categories: Aboriginal, Black, Disabled, Employment Insurance (EI) Recipient, Immigrant, and Young Entrepreneur (16-35). If you would like further information on any of these programs, contact the Canada/Nova Scotia Business Service Centre.

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14. CONTACT INFORMATION - ADDRESS, TELEPHONE AND INTERNET SITES:

The addresses below are some valuable contacts for an entrepreneur in Nova Scotia. This is a partial listing; many of the addresses are for the Halifax Regional Municipality. Check the Blue Pages of your telephone book for the number in your area.

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This information is updated on a regular basis, but organizations change unpredictably -- therefore, not all the information as presented may be timely or accurate.

• The Truth About Grants
• Networking for Entrepreneurs
• Entrepreneurial Training
• Important Steps in Starting a Business
• Financing Info-Guide

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.