- Choice of structure
- Drafting the business plan
- Choice of company name
- Company and domain name registration
- Taxes and taxes
- Company financing
- Physical location
- Permits and licenses
- Employees: research, management and training
I. Choosing a structure
When you decide to set up your own business, the first thing you need to do is identify the company's structure or the form of organization that suits you best.
In fact, its structure model around the way you manage it:
- whether alone
- or with the help of associates/partners.
4 types structures company programs. These include
- sole proprietorship,
- general partnership (SENC),
- of the joint stock company (Compagnie)
- and the cooperative.
Wondering what type of structure to choose?
Let's take a closer look.
a. The sole proprietorship
Thanks to the choice of this type of company, full responsibility of all your company's debts and obligations.
On the other hand, themain advantage is that all profits will be for you. If you are the sole proprietor of a business, a creditor may claim your personal or business assets in order to be reimbursed for any debts owed to you. Among the benefits of this type of company:
- it can be easily constituted
- especially since set-up costs are low (all you have to do is register your company name at the provincial level).
- As a result, regulations for property compared with the other 3 types of structure.
- Likewise, if you choose to do so, you will have a direct control over decision-making aspects.
- Note also that you can benefit from tax advantages when your business is not in good financial health (deducting losses from your personal income, or benefiting from a lower tax bracket when your profits are lower, and so on).
On the disadvantages this time :
- the flip side of responsibility is that it is unlimited.
- Also, income earned through your business is taxed at your personal rate, so the higher your business margin, the higher your tax bracket.
- Likewise, if you're personally absent, this could have a negative impact on your sales.
- Finally, bear in mind that it can be difficult to raise capital on your own.
b. General partnership (SENC)
Opt for a SENC may be the ideal way to run your business with a partner, if you don't want to set up your company as a "corporation". A SENC has theadvantage combine your financial resources with those of a business partner. So you can set the terms of your business with your partner, and protect yourself in the event of disagreement or dissolution, by means of a business agreement. As a result, as a partner, you'll earn profits according to the terms of the agreement.
When establishing a partnership, the basic recommendation is to draw up a shareholder agreement through a lawyer. This will enable you to protect your interests, set up the terms of the agreement, dissolve the partnership, and other aspects.
You'll have to comply with the legal requirements for establishing a limited liability company.
Among the benefits you've got it:
- that it's easy to establish a partnership
- and that start of your entrepreneurial activity will be shared with your partner, as will management, profits and assets.
- You also benefit from tax advantages if the income from the partnership is low, or if you lose money.
On the disadvantagesThe SENC is similar to a sole proprietorship, with few legal differences. As with the latter, your liability is unlimited. It may also be difficult to find a partner that's right for you, conflicts may arise later on. Also, you will be held financially responsible for business decisions made by your partner.
c. Joint-stock company (société par actions)
You can set up a joint-stock company at provincial or federal level. When you incorporate your company, it becomes a a legal entity in its own right, separate from its owners and shareholders. By being a shareholder in a joint-stock company, you will not be personally liable for any debtsand obligations or even decisions of the company, unless your creditors ask you to act as guarantor.
Visit benefits of the joint stock company are :
- that your liability will be limited,
- ownership of the company is also transferable.
- Likewise, the company exists continuously and is a separate legal entity.
- You'll also find it easier to raise capital.
- What's more, there are tax advantages to be had, since incorporated businesses may pay less tax.
As for the disadvantagesit's important to remember:
- that joint-stock companies are controlled by fairly strict regulations.
- It's also more expensive to set up a joint stock company than a partnership or sole proprietorship.
- Similarly, companies require a great deal of record-keeping, including meetings with shareholders and directors,
- and sending documents to the government annually.
- There is also the possibility of conflicts between shareholders and directors.
d. Cooperatives
By opting for a cooperativethe company will be held by a association of members. As a rather rare type of business, it may nevertheless prove suitable for a group of individuals or companies who choose to pool their resources to meet common needs.
His benefits are
- that it is member-owned and therefore member-controlled.
- The cooperative structure therefore benefits from democratic control and limited liability.
- Profits are shared among members.
For the disadvantages,
- Once again, conflicts can arise, which can have a detrimental effect on the cooperative's management.
- Also, the process decision-taking process
- and member participation is absolutely essential for its prosperity.
- Record-keeping can often be tedious.
II. Writing the business plan
You can also think about write your business plan. Although business plans differ in length and scope, it has been found that all successful business plans have similarities. This is because the plan must take into account not only the particularities of your company, but also its surrounding environment. In partnership with the SADC Achigan Montcalm teamDiscover the essential elements of any business plan and the key factors that must be included in each part of your plan. We've helped hundreds of entrepreneurs do just that.
III. Choosing a company name
Visit meaning given to your name is of great importance. The right choice of company name can form a advertising not insignificant and help your customers understand what your company does and what market you're targeting. So make sure your company's name makes a statement. understand type of service or goods you offer.
Also, keep in mind that your company's name refers to your entrepreneurial values and how you want it to be perceived. Another essential point is that your company name must be distinctive so that it stands out from the competition already present in the market concerned. For the sake of clarity and wherever possible, choose a simple namewithout any complications. Also consider the memorability factor of your company name. Pronunciation plays an important role. Legal factors are also essential: for example, you can't use the name of another company or brand, even if it's similar! So make sure it's uniqueness.
Before registering your company under the chosen name, you will also need to think about your presence on Internet. Even if you're not planning to establish a website in the immediate future, you may wish to do so at a later date. As is the case with your business nameYou want your domain name to be unique and distinctive. Later on, you may want to consider buying multiple domain names or extensions. Note that you could even choose different domains for different business sectors.
IV. Company registration
Because of your future entrepreneurial responsibilities, you need to be aware of the importance of promote your new company. In addition to advertising your company to potential customers, you must also notify the government of your plans. To do this, you'll probably need to register your business with many levels of government for a variety of reasons. You also have the choice of paying for the services of a accounting firm.
Here's an overview of the main registration requirements that may apply to your business:
Company number
Company registration
- Registraire des entreprises du Québec 1 800 644-0075
- Canadian Internet Registration Authority (CIRA) 1 877 860-1411 Services offered : Domain name registration
- Direct company registration A single online location for your Business Number, GST/HST tax accounts, payroll deductions and import/export.
- Registration with the Commission des normes, de l'équité, de la santé et de la sécurité du travail CNESST (if you have paid employees)
Federal incorporation
Provincial incorporation
V. Taxes
Once your company has been registered, it is necessary to obtain information about the tax benefits provincial and see how to perceive the sales tax with your local customers and out-of-province customers.
For Canada, please consult the Enterprise section of the Canada Revenue Agency website and find the tax information you need.
More specifically, for Quebec, please refer to the section " Québec - Business portal ". You'll then need to find out about your tax obligations (taxes, deductions and contributions).
VI. Company financing
It's not uncommon to hear business leaders say that obtaining the financing is the most complex aspect of starting a business. There are public and private sector funding sources you can tap into to get your business off the ground. Public sector financing The government provides financing to help entrepreneurs launch their businesses.
Some of this funding is targeted at specific demographic groups or sectors of activity, while other funding is available on a broader scale. It includes :
- subsidies
- as well as contributions (which generally do not require repayment)
- as well as loans
- and loan guarantees (which must be repaid).
Financing offers from SADC Achigan Montcalm
5 000$ to 300 000$* :
- Down payment mandatory for start-up projects.
- Interest rates competitive according to the risk of the file
- Payment vacation Possibility of a capital payment vacation of up to 6 months
- Maximum amortization period The loan can be amortized over a variable period of up to 25 years.
- Types of businesses eligible : Manufacturer, Retail, Service company, Cooperative, Self-employed, Non-profit organization (NPO)
- Sectors of activity : All business sectors are eligible, with some exceptions.
SADC also offers a loan for young entrepreneurs. Subject to availability of funds, this personal financing product is used for buyout projects in a business succession context or in a context of startacquisition, expansion or modernization of a company majority-owned by young entrepreneurs aged between 18 and 39 years old. The loan Strategy youth is a personal loan that can be considered as an individual's investment in the company. The amount varies between 5 000$ and 25 000$ per contractor (maximum 2 contractors per project).
- Down payment : Mandatory for start-up projects.
- Interest rates : Competitive interest rate based on risk profile
- Payment vacation interest for 24 months
- Maximum amortization period : The loan can be amortized over a maximum period of 7 years
- Types of businesses eligible : Manufacturing, Commerce, Service company, Self-employed
- Sectors of activity : All business sectors are eligible, with some exceptions.
Other available sources of financing : the private sector can provide financing for your business project. Several financial institutions may be able to help. And, depending on your type of business, you may be able to obtain venture capital or financing from private investors.
VII. Physical location
Once you've planned your finances, you need to commit to the physical location of your business, office or production facility.
To establish the physical location of your business, we recommend that you consult resources and evaluate your options.
- zoning (commercial only)
- Demographic profile (does the store's local population match your targets?)
- Traffic analysis (busy, easy-to-reach areas)
- competition
Take eco-responsible location into account offices. You can evaluate the eco-responsibility index of your premises or building sites free of charge to help you select the best location for your business.
Consult the experts at our SADC team to discuss your project from business start-up and location We'll prepare an action plan tailored to your target customers. Contact us!
Once you've thought about your location, find out more about commercial leases. To understand your commercial lease, you need to familiarize yourself with the various types of commercial leases, and your rights and obligations as a tenant.
VIII. Permits and licenses
You'll need to check what you can get in terms of licenses and permits with the federal, provincial or municipal government, depending on your location and sector of activity.
IX. Employees: research, management and training
"Alone we go faster, together we go further!"
If you intend to recruit staff for your business, take the time to read about your obligationson employee financial management and skills training that will make your team a success.
For the recruitment, l'hiringand the management to build relationships with your employees, you need reliable and effective recommendations.
Keep in mind that once you've posted your job, you can always modify it at any time, free of charge. You can also find qualified candidates by using a tool twinning.
Contractor and employees of Bistro le Coup Monté in Repentigny
Our advice to start-up entrepreneurs
When it comes to starting a business, there are many resources at your disposal. You'll find the volume of information and contacts easier to digest if you choose to prepare yourself well. Good preparation and tenacity are the key to a successful business.
The Société d'aide au développement de la collectivité (SADC) is a non-profit organization, supported in part by Canada Economic Development (CED). Our team works closely with all the SADCs in Quebec to set up regional initiatives.
To help you make the most of your company's potential, the SADC offers you a full range of management consulting services. Contact us now!
We accompanied them
Among the entrepreneurs we have supported are the following companies: ExploreNaDoom, Aubaines des Laurentides, Dollar or two from Ste-Julienne, Solnor EnvironnementLait de poule inc, Fleuriste Fleurs d'époque, the Brewery L'Apothicaire de St-Jacques and the integration company Buffet accès emploi.
