How to start up a small business.

• Position: THE "HOW TO GUIDE"

Being in business can be as simple or as complicated as you want/need to make it. Circumstances will dictate how complex your unique situation will be and those are usually related to scope or size of the business. For a small operation, it can be very simple.

Name registration

It is perfectly legal to operate as a business under your own name. If you want to give your business an identity (name), you would have to register that name with the Ontario government. Registration does not protect the name or imply any other legal standing.

PST/GST retail sales tax

Depending on the exact nature of what you are providing, you may be required to charge PST (8%). Generally, PST is only charged on items, but there are some services that are PST taxable--graphic design is one. To be certain, call (800) 461-1564.

If your total revenue for any continuous 12-month period is less than $30,000, you do not need to worry about GST (7%). In some instances, it is advantageous to register for GST even if you are under the $30,000. To contact Revenue Canada, call (800) 959-5525.

Employees vs subcontractors

If you will hire anyone to work for you, you need to register for a payroll number (Revenue Canada) and WSIB number. Many have tried to circumvent the payroll process, as there is a cost to the employer that can be significant, particularly for WSIB coverage.

Income tax

Whether under your own name or a registered name, the implications to you are the same. You would invoice your...